This discussion is locked
Post a new topic
8 Replies Latest reply: Oct 3, 2008 5:45 AM by Mybizfiler RSS

Sole Proprietorship or LLC

mharvey Newbie
Currently Being Moderated
My husband and I are planning on opening a tattoo shop. I would like to know whether a sole proprietorship or LLC would be better for the formation. I have read the advantages and disadvantages of both. I have been considering and LLC because of liability issues, but I am still not for sure. Any opinions would be greatly appreciated.
  • Re: Sole Proprietorship or LLC
    amspcs Master
    Currently Being Moderated
    Honestly, I don't think you want suggestions from an anonymous forum (unless the suggester happens to be a CPA or attorney). There is no substitute for a professional. They need to know you, your business and financial circumstances, etc. No such thing as one-price-fits-all. Make a decision that works for YOU, not for everybody else. A good place to start is your local chamber of commerce for a referral to a reputable source.

    When you get set up, please give us a look-see for your merchant services credit card processing. We have some nice programs you might be interested in. No contracts, no equipment or software to buy, lease or rent, etc, very good starter program for start-up businesses like yours.

    Good luck.

    AMSPCS
    amspcs@juno.com
    www.MerchantServices-help.com
  • Re: Sole Proprietorship or LLC
    VelvetBlues Newbie
    Currently Being Moderated
    I second mharvey's suggestion. And you might also want to consider an S-Corp.
  • Re: Sole Proprietorship or LLC
    LUCKIEST Master
    Currently Being Moderated
    Sole Proprietorship or LLC,

    Tell us more. Where are you?? like City and State?? How soon do you plan on opening this tattoo shop??
    Have you found a location?? Do you have a Business Name??

    To answer your question, most businesses start as Sole Prop and run as Sole Prop.
    It is then easier to change to an LLC later if you need to..
    Everybody in business should have an Accountant and a Lawyer and they would know your background and
    personal info and guide you in making the right decision that is best for you.

    Good luck, LUCKIEST
    • Re: Sole Proprietorship or LLC
      mharvey Newbie
      Currently Being Moderated
      I want to open a shop in Butler, Missouri. I have been looking at insurance that covers tattoo artist. there is one company that does that and and covers piercings as well. They also have an option for business insurance. With opening a tattoo shop, we will have each client fill out a client release form informing them of the risks that are involved with each procedure and also give us a detailed medical history. With release forms, there is also a part that mentions that they will be soley responsible for what happens after the procedure is on them. We give them instruction on how to properly care for their tattoo/piercing. We have figured a business name. We have searched to see if that name is available and it is. we plan on opening the shop as soon as we can. We have to raise the starting capital in order to do this. we have found a building that is for sale in Butler for 34,000. two story building that is approximately 3672 sq. ft.

      i have another question on how to go about purchasing the building. This will be my first major purchase. i am 23 years old. this is all i want to do. I have found shop owners that are my age. they are successful. Gives me hope. I am wondering whether i should just ask for a loan for the amount of the building plus however much will cost for everything else. With the price of the building, I have figured that it will cost around 70,000 to start up and that is with extra capital for slow months.

      I am mainly worried about being able to get a loan because of my age, i have no credit, and not many assests. The main thing i won is a 2002 toyota 4-runner. I have slowly started to purchase items needs for a shop. My husband tattoos privately right now. So the items we have purchased are needed by him at this moment.
      • Re: Sole Proprietorship or LLC
        amspcs Master
        Currently Being Moderated
        You sound like you are trying to be responsible and do your homework. Very commendable.
        But, there are a few things you need to understand: First and foremost, you can't put all your confidence in insurance. There are always exceptions to what insurance will cover no matter what the policy says (insurance people never willingly and happily pay out money; their goal in life is to AVOID paying out money), there are coverage limitations after which you personally are responsible, there is a fine line between negligence and liability, so on and so forth. No matter what you do, getting insurance is a must in any business line. BUT, as you've been told repeatedly and correctly throughout this forum, you need to consult an attorney to find the best solution for you.

        AMSPCS
  • Re: Sole Proprietorship or LLC
    Uncle Leon Apprentice
    Currently Being Moderated
    AMSPCS has advised you well to consult professionals.

    I'm neither a CPA nor an Atty; but I'm going to stick my neck out, here.

    In any business, where there's even the remotest possibility that you could be sued, and if you have ANY personal assets; never, Never, NEVER operate as a sole proprietor. Do ya think that screwing up someones skin on a permenant basis could be one of those possibilities? Even if you do everything right... is it possible that a customer might not see your creation as they "dreamed" it would be?

    I guess that leaves an LLC or an "S" corp. An accountant can best advise you on that. And since no logical person starting a business would do so without engaging an accountant, just discuss it with him/her
  • Re: Sole Proprietorship or LLC
    bizsaver Novice
    Currently Being Moderated
    You are being given some excellent advice. Tattoo Artists are at risk for liability, and you need to be covered by either an LLC or Sub-Chapter "S" Corporation. There are some new IRS rulings on "S" corps that might be better for you than an LLC, but check with your lawyer and accountant. Your other "Must Do" is get as much personal liabilit insurance as you can afford. Don' think about opening a Tattoo Shop without protecting yourself and your clients.

    Gary Scaife
    The Answer Guy
    www.answerguy.info
  • Re: Sole Proprietorship or LLC
    Mybizfiler Novice
    Currently Being Moderated
    One of the major reasons that people incorporate is to protect their personal assets from any potential business liability. Forming an LLC would be beneficial for you and can very well form a LLC. We at ICS would definitely help you providing the complete information on LLC and help you form a LLC and provide end to end solutions at competitive pricing.

    You can reach Mr. Kiran Kumar(Senior Manager) at 979-633-4221 and can mail him @ kirankumar.tummala@mybizfiler.com, as he is very well experienced and has considerable knowledge in incorporation services

    For more information and details please visit ICS web site www.mybizfiler.com.

    You can also visit our informational blog site: http://mybizfiler.wordpress.com/.

    Disclaimer: ICS does not offer legal services or legal advice, but only generic information on legal subjects. ICS is not an attorney or law firm and not a substitute for an attorney or law firm

More Like This

  • Retrieving data ...

Legend

  • Correct Answers - 100 points
  • Helpful Answers - 100 points