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5 Replies Last post: Mar 27, 2009 4:17 PM by LLCguy

Starting a business - LLC -INC - SoleP??

Mar 24, 2009 10:05 PM

damienapbt 2 posts since
Mar 24, 2009

Hello,
Its good to meet you all. I have a question in regards to starting a business. I have already begun to get my business plan together. I may be able to do it without a substantial business loan.
My question is, whats the best typ of business lisc. to get? Should I incorporate? go with a LLC? whats the best way to start?
I'm planning on opening a cafe in the future, and would like some advice. I should say coffee shop, as I will not be offering food. I've been in the coffee business for about 6 years and I'm looking to do my own thing soon.
Any help is much appreciated.

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LLCguy 18 posts since
Mar 23, 2009

1. Re: Starting a business - LLC -INC - SoleP?? Mar 25, 2009 3:35 PM

there really is no easy answer to this.But know its very important to structure your company right from the get go.

a few questions..

Are you the only person involved or will you have partners?

what state are you in?

In most states the LLC is the easiest to operate, your going to want to ensure that you have an operating agreement, a tax ID number, registered agent with your LLC. if its just going to be you, the the IRS will treat you as a sole prop.

I really don't understand why anyone would want to operate as a sole prop. I've heard horror stories where people have lost their homes operating as sole props. every business I start I treat as a seperate entity that myself.

Here is a link to a really helpful article to help you.

http://www.myllc.com/why-should-i-incorporate.aspx

best of luck with your business venture!

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LUCKIEST 7,932 posts since
Aug 6, 2007

2. Re: Starting a business - LLC -INC - SoleP?? Mar 27, 2009 11:01 AM

Starting a business, Welcome

The Sole Prop is the most common form of business. You need a Business Name and a Federal I D Number.

I would be happy to help you with your business plan.

Good luck, LUCKIEST

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LLCguy 18 posts since
Mar 23, 2009

3. Re: Starting a business - LLC -INC - SoleP?? Mar 27, 2009 1:55 PM

in response to: LUCKIEST

It is the most common but also the most dangerous. The liability protection alone is enough to convince a business owner to form a LLC or incorporate. I would NEVER risk my families security and operate as a sole prop.. not worth it. I've witness so many instances where a sole prop gets sued and looses their assets, or a partner gets sued personally and it ends up affecting the business for omething that wasent even business related.Not worth it.

Every time I start a business, my goal is to do it to build personal assets, assets I NEED to protect. Protection only an LLC or corporation can give me.

I started my 1st business when I was 18. It is a mobile car was using an old truck my aunt gave me. 1st thing I did was create an S Corporation for it. smartest thing I ever did, from the get go I treated it as a seperate entity than myself. Most small businesses owners make the mistake of mixing their personal and business., thats why they remain a small business. 3 years later I had 6 trucks and a huge market. I eventually sold it and used the money to go to college.

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damienapbt 2 posts since
Mar 24, 2009

4. Re: Starting a business - LLC -INC - SoleP?? Mar 27, 2009 4:04 PM

in response to: LLCguy

Yes I've heard the stories myself. I guess my real question was LLC or INC.
I started on the LegalZoom site and the qestions got a little interesting. Such as shares/worth investment, etc.
It will be in Philadelphia. I would like to be the main person involved. My wife already has a career but would be involved as well. I have a good friend in Philly that would like to help out too. But I would like as little hands in the pot. But at the same time have it as a separate entity.
thank you very much. this has been quite helpfull.

Also, getting the business started, I'm trying to figure out some start up costs. I've already taken into account all the liscencing fees, buildout, rent, utility acct. set up. For ongoing Bus. Exp, what are payroll taxes like, and are there any other expenses that I may not know about. I've taken into account CAM fees, utilities, rent, wages (including my own), COGS, insurance, prop tax and equipment financing bills.

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LLCguy 18 posts since
Mar 23, 2009

5. Re: Starting a business - LLC -INC - SoleP?? Mar 27, 2009 6:33 PM

in response to: damienapbt

based on my experiance the LLC is going to be easier to operate. i form corporations if I think I'll eventualy raise capital. I used legal zoom several years ago once and they really messes up my paperwork (this may not be the case for you, just my experiance)

I use these companies to form my entities

MyCorporation.com (owned by intuit)
MyLLC.com (they wrote LLC for dummies)
IncorpServices.com (one of the nations top registered agent companies)

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ForumsStarting a Business

This Question is Possibly Answered

Starting a business - LLC -INC - SoleP??

Mar 24, 2009 10:05 PM

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