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11 Replies Last post: Mar 15, 2009 10:25 PM by msbeautyceo

Starting small business, Should I form LLC or Corporation

Apr 11, 2008 9:39 AM

jaimek 10 posts since
Apr 11, 2008

Hello my name is Jaime. I am a stay at home mom and I am trying to start my own business. I would like to create a party business. I would be providing services such as characters and clowns for parties. I am trying to figure out where to start first. Need to know if I should form a LLC or Corp. I will be the only owner. If anyone has any good ideas for me I would appreciate you getting back to me. Thanks in advance.

Jaime

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LUCKIEST 7,938 posts since
Aug 6, 2007

1. Re: Starting small business, Should I form LLC or Corporation Apr 11, 2008 10:16 AM

in response to: jaimek

Starting small business, Welcome to this web site Jamie.
Do you know about SCORE?? SCORE is FREE and they can help answer
all your business questions in person or online.
Do you have a Business Name??
You also need a Business and Marketing Plan and SCORE can help.
Good luck, LUCKIEST

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IAmSpartacus 20 posts since
Mar 28, 2008

2. Re: Starting small business, Should I form LLC or Corporation Apr 11, 2008 10:25 AM

in response to: jaimek

Hi Jaime,

Congratulations and good luck to you. My recommendation would be to form an LLC. It is easier and less expensive to form. You can find LLC agreement templates online for free and usually download the forms from your state online to get registered. I would definitely make an appointment with your local SCORE chapter. They are not at all utilized as much as they should and have many years of advice for your benefit.

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jaimek 10 posts since
Apr 11, 2008

3. Re: Starting small business, Should I form LLC or Corporation Apr 11, 2008 10:25 AM

in response to: LUCKIEST

Thanks for replying! I did not know about SCORE but will look into it. I have a name in mind that I want to use, but need to make sure its available for use. Thanks

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jaimek 10 posts since
Apr 11, 2008

4. Re: Starting small business, Should I form LLC or Corporation Apr 11, 2008 10:27 AM

in response to: IAmSpartacus

Thanks for your reply. Do you know how I find my local SCORE chapter? I figured LLC would be easier but wanted to hear other peoples opinions. Thanks again.

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IAmSpartacus 20 posts since
Mar 28, 2008

5. Re: Starting small business, Should I form LLC or Corporation Apr 11, 2008 10:47 AM

in response to: jaimek

You're welcome. Just go to www.score.org and type in your zip code. It will tell you the location of the nearest office to you.

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jaimek 10 posts since
Apr 11, 2008

6. Re: Starting small business, Should I form LLC or Corporation Apr 11, 2008 10:50 AM

in response to: IAmSpartacus

Thanks for the helpful info. I will keep you posted on how I make out when I contact them!

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MnlyTechnlgy 98 posts since
Feb 27, 2008

7. Re: Starting small business, Should I form LLC or Corporation Apr 11, 2008 10:50 AM

in response to: jaimek

jaimek: Congratulations and welcome to the forum. I found that becoming an LLC is a lot less strict than becoming a Corporation because of the guidelines which need to be followed legally. For tax purposes, my accountant recommended LLC as well. Have you written a business plan yet? The SBA (small business admin) provides a lot of good advice and resources for people looking to start up their own business. My husband and I took the businessownership leap in 2005 with our Website Development company and have been very excited to watch our business grow. We decided to specialize in working with small businesses, home based and commercial because we know that the finances aren't typically on the same level for the smaller entities as they are for the majors. I wish you much success.

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designer 329 posts since
Feb 28, 2008

8. Re: Starting small business, Should I form LLC or Corporation Apr 11, 2008 10:53 AM

in response to: jaimek

Sounds almost like an "Event Planner"? But, just characters and clowns?

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jaimek 10 posts since
Apr 11, 2008

9. Re: Starting small business, Should I form LLC or Corporation Apr 11, 2008 12:58 PM

in response to: MnlyTechnlgy

Thanks for your info. I am very eager to get this started. I will keep you in mind when I am ready to get a website up and running. I am working on a business plan now.

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jaimek 10 posts since
Apr 11, 2008

10. Re: Starting small business, Should I form LLC or Corporation Apr 11, 2008 12:59 PM

in response to: designer

not an event planner! I am only doing characters and clowns to start off with. Don't want to do too much all at once. Maybe in the future I can expand to other things!

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MnlyTechnlgy 98 posts since
Feb 27, 2008

11. Re: Starting small business, Should I form LLC or Corporation Apr 11, 2008 4:37 PM

in response to: jaimek

jaimek: you are most welcome. always willing to share experiences with other small businesses as an alternate resource. you never know when someone has experienced something that might actually help. here's my direct e-mail: deb@mainelytechnology.com

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Lighthouse24 2,396 posts since
Oct 10, 2007

12. Re: Starting small business, Should I form LLC or Corporation Apr 11, 2008 6:40 PM

in response to: jaimek

Of the two, an LLC is generally easier to administer/run (but, depending on the state, may not be any simpler or less expensive to set up).

It sounds like this will be a one-person part-time operation, at least initially. Is there any reason you've ruled out starting as a sole proprietor? That would let you be up and running legally in a couple of hours, provide the simplest business structure to manage, and would only cost you a few bucks up front instead of hundreds. Once the business takes off and starts generating revenue, you can always register it as an LLC or corporation (you wouldn't be committing the extra time and money that either of those structures require until you knew you had it and needed to). Just a thought . . .

Hope this helps. Best wishes.

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akgold 51 posts since
Jul 19, 2007

13. Re: Starting small business, Should I form LLC or Corporatio Apr 11, 2008 7:01 PM

in response to: Lighthouse24

I agree with Lighthouse24. Being a Sole Proprietor means that you simply fill out a Schedule C at tax time. This is certainly the easiest option. A lot of people who have hobbies fill out Schedule C's as sole proprietors. It's the simplest and easiest way to simply get up and running.

Good luck!

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jaimek 10 posts since
Apr 11, 2008

14. Re: Starting small business, Should I form LLC or Corporation Apr 11, 2008 8:43 PM

in response to: Lighthouse24

Wow I think that makes a lot of sense. I starting to worry that I would be putting a lot of money out before I even have the chance to make it. Where can I find info on being a sole proprietor? I really want to read up on this. Thanks for your valuabel info. I appreciate it.

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This Question is Possibly Answered

Starting small business, Should I form LLC or Corporation

Apr 11, 2008 9:39 AM

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