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    3 Replies Latest reply on Dec 1, 2008 12:48 PM by considerit

    Inc. vs. LLC for Small Consulting Firms

    Marinite Newbie
      I'm in the process of expanding my consulting business after years of operating as a sole proprietorship. Many wonderful colleagues are becoming available due to the ongoing economic meltdown, and would like to join forces. Some are willing to operate as subcontractors, and others want to 'have a piece of the action.'

      Does anyone have experience with this type of situation, and which business structure (Inc. vs. LLC) is better?

        • Re: Inc. vs. LLC for Small Consulting Firms
          LUCKIEST Guide
          Consulting Firms, Welcome

          You ask if anybody have experience with this type of situation?? YES I have, but would like to know more about you. Who are you?? Where are you, to answer your question correctly

          You have been in business as a sole proprietor. Do you have an Accountant??

          How do I contact you?? LUCKIEST
            • Re: Inc. vs. LLC for Small Consulting Firms
              Marinite Newbie
              Thank you for your initial response ...

              I'm based in Northern California, and provide general management consulting services primarily to the life sciences and cleantech industries. I've long operated as an independent (sole proprietor DBA), occasionally subcontracting additional work to colleagues, occasionally subcontracting myself.

              Now, there are so many excellent people being shed by high-end consulting firms, that banding together in a low-overhead model with a lower rate structure seems like a good thing to do. Some people will want to be 'partners,' others will be happy to be occasional subcontractors.

              Yes, I have a local accountant and a lawyer ... but this is my first time reaching out for comments through a business network like this, and I'm very interested to see what comes back.

              Thank you ...
                • Re: Inc. vs. LLC for Small Consulting Firms
                  considerit Newbie
                  I like this thread, although I don't have what I'd consider expert advice and share the same question as you, really.

                  I myself just launched a similar business offering consulting in Lean Manufacturing Deployment and Cultural Initiatives to manufacturing organizations, particularly in Southeastern Michigan (Detroit) and the region. It's a strange time to be launching a business, but my initial perception is that companies are desperately trying to achieve sustainability beyond just 'cost cutting for cuttings' sake' and so that's my niche.

                  Because I'm only now working with two former employers with whom I have what I'd call a 'special relationship' I have been a bit lax about obtaining insurance. And so I'd like to learn more about that.

                  I listed my business as an LLC, of which I am the sole member. The other individuals that I partner with (Executive Coaches, Six Sigma folks) all seem to be LLC-structured as well.

                  Also my first visit to the board and first "conversation" about this sort of thing, so I'll watch alongside you to see if good information comes back