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    2 Replies Latest reply on Apr 19, 2008 10:35 AM by dublincpa

    Sole Proprietor or Inc

    newbie Wayfarer
      I've LLC'd all of my entities, however the umbrella company isn't. The umbrella company is the one I will use to pay my employees. Should I incorporate (NYC) or remain a sole proprietor? All incoming and outgoing funds will be in the other companies that have already been LLC'd.
        • Re: Sole Proprietor or Inc
          LUCKIEST Guide
          Sole Proprietor or Inc. How long have you been in business??
          Everybody in business should have an Accountant, A Lawyer and maybe an Insurance Agent.
          Do you have an Accountant?? A Lawyer??
          Now is the time to ask YOUR professionals
          • Re: Sole Proprietor or Inc
            dublincpa Scout

            I think the answer is clear that you need an LLC or Corp. C or S Corp will depend on a lot of factors. I assume that you are worried about liability or you wouldn't likely have LLCd' the other entities. If all of the other entities have some level of liability protection already, why isn't the primary? I am curious if there is a specific reason or it just hasn't happened yet or you weren't sure it was necessary.

            In light of your other post on having EE's in multiple states, why are all of the EE's in the main entity? Even if they do work for mulitple entities, you can simplify by having their primary employer registered in their state and do cost allocations between companies. I have done this a number of times with multiple entity clients. Nexus as Lighthouse pointed out in the other post is the dirty word of doing business in multiple states. You may be able to minimize your tax obligations and reporting obligations by careful assignment of employees across enitities. Because of comon ownership, you will still be able/required to offer a single benefit plan for health, retirement etc. Cost allocations for payroll and benefits can be a lot easier than multiple tax returns in multiple states.

            Please feel free to email me with specific questions Replace at with @. I use it to temporarily foil web crawlers grabbing addresses for spam.