I was wondering about the internet doing research and I stumbled on another question from this forum and started kicking myself for not having found this site sooner. So hello everyone, this is my first post. I hope that we can help each other in our endeavors.
I am starting an advertising agency (well it's actually just a few friends of mine tagging along for the ride), and have several questions that I would like some input in.
1. Sole proprietor vs. Partnership vs. LLC?
I can start work ASAP if i set it up as a sole proprietorship, or partnership. Do you guys suggest going with an LLC for an advertising agency? I would have clients sign papers stating that they are full satisfied with the work I've done and are willing to move on to the next step in the process EVERYTIME I complete a step... which should alleviate any possible issues with being sued from their side. Should I really worry about getting sued with a business that does not offer a physical product, or have employess?
2. If I'm claiming all of the income through misc income (because I'm a sole prop at the moment), do I need an EID?
3. I have a serious problem with NOT having a physical location. I feel that not having a location makes potential clients see me as not serious about my work. Is this a serious problem? Am I overthinking it? Do you feel that businesses are expecting startups to actually have a location in order to take them seriously?
Those are my questions at the moment. I have many more, but I will wait to get answers for these questions first before posting more to see how active the forums are.
Here are the things I've accomplished/made in regards to the business:
-Business plan (informal, but it fits the type of agency I want to create)
-Website (hosting and domain for 10 years)
-Stock documents (about 10 pages of misc. documents I will need when dealing with clients)
-A small amount of money from people who have tried me out (not a lot of money at all)
Things that I haven't done, but think I should:
-Name registration with the state
-Plan to get clients (this will be a different topic altogether)
What do you guys have to say? This is all overwhelming for me, but I have a very positive view on what I want to accomplish. I've also met with respected professors from well-known colleges that tell me I'm on to something good, and can potentially be very lucrative if I manage to play my cards right before anyone else gets to it in my area.
Honest comments and criticisms please.