Home: Message List - Starting a new business - Is "Sole Proprietorship" or "LLC" better?

Re: Starting a new business - Is "Sole Proprietorship" or "LLC" better?

Accting_Svcs — Fri, 03 Oct 2008 15:43:01 GMT

An LLC or an S Corp is going to be the most beneficial for you compared to a Sole Proprietorship. Both offer protection against liability but there are differences when it comes to the taxes. Are you planning on paying yourselves payroll? If so then you may want to go with an S corp, as shareholders can have payroll but members of an LLC cannot they usually receive guaranteed payments not payroll and with this you will need to make sure that you make Estimated Tax Payments quarterly to cover the taxes that will be due. There are alot of things that you will need to look at to make the final decision but I would stay away from a SP.

Re: Starting a new business - Is "Sole Proprietorship" or "LLC" better?

fundamentals — Fri, 03 Oct 2008 15:03:02 GMT

Dear CLU025

In my opinion the greatest benefit of an LLC is that it creates a shield of liability protection between the LLC's business and the owners of the LLC. This is important because if your business experiences a loss or a claimand gets sued, then you,as the owner is not personally held responsible. You need to check with your State Corporation Commission and they will gladly provide you with the ins and outs of obtaining and maintaining your LLC. LLC's are required to operate there company under guidelines as stipulated by your particular State.

In operating a business I believe most lawyers and accountants would recommend the LLC route. The cost for filing is not prohibitative. Further, as a sole proprietorship you are totally at risk as your business is inherently a part of you personally.

For additional information go to google and type in www.your state(ie Maryland)BusinessFormation.com for more detailed information.

Hope this is of some help!

John

Re: Starting a new business - Is "Sole Proprietorship" or "LLC" better?

Mybizfiler — Fri, 03 Oct 2008 09:46:56 GMT

One of the major reasons that people incorporate is to protect their personal assets from any potential business liability. Forming an LLC would be beneficial for you and can very well form a LLC. We at ICS would definitely help you providing the complete information on LLC and help you form a LLC and provide end to end solutions at competitive pricing.

You can reach Mr. Kiran Kumar(Senior Manager) at 979-633-4221 and can mail him @ kirankumar.tummala@mybizfiler.com, as he is very well experienced and has considerable knowledge in incorporation services

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Disclaimer: ICS does not offer legal services or legal advice, but only generic information on legal subjects. ICS is not an attorney or law firm and not a substitute for an attorney or law firm

Re: Starting a new business - Is "Sole Proprietorship" or "LLC" better?

CorpCons08 — Thu, 22 Nov 2007 15:51:27 GMT

I want to point out one thing, because I see this often being misconstrued. It is not a definite protection against personal liability. It depends on the number of partners and what exactly is being sponsored by the company. (assets being sponsored)

Re: Starting a new business - Is "Sole Proprietorship" or "LLC" better?

CorpCons08 — Thu, 22 Nov 2007 15:48:15 GMT

Not fair lol. They deleted my post.

Re: Starting a new business - Is "Sole Proprietorship" or "LLC" better?

quality — Thu, 22 Nov 2007 05:48:21 GMT

Your best choice would be LLC it is exactly what they say if some one comes to you saying you ahve done some thing and they sue they will go after every thing they have not just your business.
Good luck and happy hollidays.
Quality

Re: Starting a new business - Is "Sole Proprietorship" or "LLC" better?

CorpCons08 — Wed, 21 Nov 2007 18:20:42 GMT

Of course... My goal is always to help the individual.

Re: Starting a new business - Is "Sole Proprietorship" or "LLC" better?

Ed O'Gee — Wed, 21 Nov 2007 18:18:23 GMT

Come on Corp - no need to get snippy, you provide some of the better replies on the board. I am sure there is enough business for everyone. We gotta respect everyone's right to promote their agenda's but hopefully for the most part we are all here to help each other.

Have a great Thanksgiving everyone!

Re: Starting a new business - Is "Sole Proprietorship" or "LLC" better?

CLU925 — Wed, 21 Nov 2007 18:15:12 GMT

Thanks for all the helpful information.

Your last comment, CorpCons08, had me laughing out loud.

Re: Starting a new business - Is "Sole Proprietorship" or "LLC" better?

LUCKIEST — Wed, 21 Nov 2007 18:10:41 GMT

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Again LUCKIEST