I operate as a sole proprietor. However, I am starting another company that will a LLP as three will be three partners and we felt this was the best route for us to go legally. I looked into making My Office Assistant an LLP but for now I will leave it as is and let me accountant decide when I should make the move.
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I have spoken with David and Michael and I do know they are currentlly seeking a Registered Agent for the state of IL if anyone is interested?
For liability purposes we counsel all our clients to at least consider an LLC (and get good insurance coverage).
However what most of our clients don't understand is that an LLC is not a recognized tax entity and unless otherwise timely elected to be taxed as (for instance) a Subchapter S Corporation they will in fact default (under state law) to be taxed either as sole proprietor (if a single member LLC) or as a partnership (if a multi-member LLC).
Since there are advantages and disadvantages to all entity types we also counsel all of our clients to seek competent legal counsel.
That being said we've found an LLC to generally be the most flexible business type for our small business clients as they can make elections to change the recognized tax status as their business grows and changes.
I wondered what others thought about an S Corporation - my accountant has advised me to go this route - because of federal taxes. My concern is spending money setting that up right at the beginning while I am still small and part time? Any others gone that route?
I started as a sole proprietor and am moving to an LLC. I decided against the S Corp., with the LLC I do not have to have any additional persons in the business, issue stock etc. For me the price of the LLC in Illinois is substantial vs the S Corp so I am incorporating in Nevada and will be a foreign corporation which will save me a substantial amount of money.
I am registered in the State of Florida as a FICTITIOUS NAME. Is that not the worst name? It makes it sound so fake . I realized recently that this gives me no legal rights to the name of my company! It is $50/year to keep this active.
Advice: check out how to register to have legal rights to your company's name. I think I need to check on this myself.