Question How do you operate legally (LLC, sole prop, partnership, etc.)?

Do you run your business as a

  • Sole Proprietor

    Votes: 1 100.0%
  • LLC

    Votes: 0 0.0%
  • S-corp

    Votes: 0 0.0%
  • Partnership

    Votes: 0 0.0%

  • Total voters
    1

Dawnrm

New Member
Hi, I'm just getting my business started and sat down with my tax accountant who explained the pros and cons to the different types of businesses. I decided to start off as a Sole Proprietorship and will probably change to a LLC in the future.
 

LGCVS

New Member
I've certainly struggled with this over the past year and a half. I operate as a sole proprietor but it seems there are so many good reasons to become incorporated. I am alos looking to grow a Multi VA practice now. This is great information. I will certainly make a decision soon.
 

StaceyH

New Member
I'm forming an LLC, it's very reasonable to do in Arizona and offers some protections which I'm happy about.
 

Jen Rivet

New Member
Currently as SP, doing the documentation for LLC. I am changing because I want to protect myself, company and family from an financial/legal complications. Have to be careful more than ever.
 

Office Goddess

New Member
I am registered as a llc for a combo of the liability protection (although they could sue me personally, as well) and for the added legitimacy it places on my business over being a sole-prop.
 

PeppyM

Member
I am registered as a llc for a combo of the liability protection (although they could sue me personally, as well) and for the added legitimacy it places on my business over being a sole-prop.
Yes, you could be sued personally, but, only for debts which you personally guarantee, for tax debts, for negligent or intentional acts, for breach of fiduciary duty, and for blurring the boundaries between the LLC and its owner(s). Since my personal code of conduct would not include doing any these things, I'm taking my lawyer's advice and setting up a single member LLC. It provides the next best individual protection after a corporation.
 

Michele

New Member
Once my business is up an running I plan on operating as a sole proprietorship. Then in a few years I will reevaluate my business situation, to see about changing my business to an LLC.
 

PeppyM

Member
On the advice of my attorney, I will be forming a single member LLC. It's not that expensive (in my state it costs $100) and it provides almost 100% of the protection of the corporate veil. The only personal liability that I would have is:

  1. If I were to make a personal quarantee on a loan;
  2. If I did not pay my taxes;
  3. If I committed negligent or intentional acts;
  4. If I breach fiduciary duty; or
  5. If I blur the boundaries between the LLC and myself.
In order to prevent losing the investment in my business, I will be taking out business insurance.
 

ATMVA

New Member
I am in the UK (Scotland) so excuse my ignorance but not sure what LLC etc is. I operate as a Limited Company rather than a sole trader. I find it easier to keep things in order (with the invaluable service from my accountant). Its been a learning curve to change my mindset as I am an now 'employee' of my own company. Feels like I am working for an invisible boss.
 

Cbonn

New Member
I'm starting out as a sole proprietor I don't know if I will change to a LLC in California. There is an annual fee if you are a domestic LLC. If I'm not mistaken if you are a foreign LLC you still have to pay the annual fee. So its something for me to think about.
 

debw241

New Member
FYI - I have a business client who provides Registered Agents (RA) for every state in the U.S. He provides these locally and to other businesses from around the world. Since my last post here - I became RA for IL.

I am looking for a Registered Agent for the state of IOWA right now for him. His company keeps minutes, bylaws, corp records -- just need physical address (business or home) no p.o. boxes. I get mail for each business he assigns me about 1 time a year and forward to client at his expense. That's it.
 

SandyM

New Member
I operate as an LLC- I prefer to be as separate as legally possible!

Peppy- Curious about the business insurance, what kind is it?
 

TheBrainyGal

New Member
I agree with Pam - I've started as a sole proprietor and it's been working great...but I've also looked at LLC and may be willing to revisit that as I grow bigger or take on more liability.
 

debw241

New Member
what is point of Fictitious Name filing? Is that better or only cheaper than LLC? I am Registered Agent in IL (working under Corp who sells LLC etc) but am beginning to take time to try to learn more
 
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