leslee42 Posted May 15, 2012 Share Posted May 15, 2012 I have been reading up from the threads as well as some books about the protection an S-Corp or LLC gives you. And I greatly agree that a corporation is the best way to go to protect your personal assets. But I was just wondering how many people out there have a Corporation vs. a Sole Proprietorship? I would be new to selling my candles and was thinking since I am not sure of how much I could make,etc. - would it be wise to start out as a Corp? The State of California charges you $800.00 just to be a Corp. Just was wondering what others thoughts are on this subject (If you were starting out new to selling). Just need some other opinions on this subject!Thanks for any comments/input you may have! Quote Link to comment Share on other sites More sharing options...
EricofAZ Posted May 16, 2012 Share Posted May 16, 2012 I have a different business that is an LLC with an S-election tax. LLC's have all the liability protections as corporations. They don't require as much paperwork to maintain so the LLC is way easier to handle. No annual filing, no board meetings, etc. Some States require that a corporation have more than one officer so if you're by yourself, the LLC starts to look a lot better.You can take the S election on either a corp or LLC so that doesn't matter. Quote Link to comment Share on other sites More sharing options...
leslee42 Posted May 17, 2012 Author Share Posted May 17, 2012 Thank you EricofAZ for the info. I have been leaning towards the LLC/S-Corp. entity but just was not sure. Less paperwork sounds good. I appreciate your feedback! Quote Link to comment Share on other sites More sharing options...
CareBear Posted May 20, 2012 Share Posted May 20, 2012 corporations are a PITA, but really you should be making this decision after consulting a business attorney. as amazing as we are, we're not really qualified to advise on this! Quote Link to comment Share on other sites More sharing options...
EricofAZ Posted May 27, 2012 Share Posted May 27, 2012 CareBaer has a good suggestion here. For me, one of the issues was less to do with paperwork and more to do with how the dividends (corp) or draws (LLC) work regarding taxes. The S-Election which can be done on either reduces the corporate tax so you don't get a double taxation issue when taking a paycheck. Quote Link to comment Share on other sites More sharing options...
beekeeper_sd Posted May 29, 2012 Share Posted May 29, 2012 Beware going the corporation way. I have a friend that incorporated her business and, even though she had NO employees except for herself, she had to pay unemployment taxes to the government. An LLC offers the same legal protection as a corporation without all of the red tape of a corp. Quote Link to comment Share on other sites More sharing options...
scifichik Posted June 27, 2012 Share Posted June 27, 2012 Our attorney advised for our hobby grown into a business that an LLC was our best option. The creation of a legal business entity protects our personal property and assets. In Missouri, there is a step by step process that is easy to follow on the secretary of state's website. Everything from the creation and registration of your fictitious name, articles of incorporation, application for state tax ID and employer ID number (for the day when more than yourself and partner are working the business) can be found there. If memory serves, we accomplished all that for under $75 grand total And as an added benefit, all that registration qualified us for a free business checking account at the local bank. Quote Link to comment Share on other sites More sharing options...
robertgibbens Posted June 27, 2012 Share Posted June 27, 2012 Determining how to set up a business is not rocket science. I have a s-corp engineering biz and 2 llc businesses (including my candle biz). You do not need to waste yur money on a lawyer. Llc is the way to go.800 to set up an llc? That's why I left Cali. As I remember, cost me 35 bucks here in hawaii... Quote Link to comment Share on other sites More sharing options...
jeanie353 Posted June 27, 2012 Share Posted June 27, 2012 Determining how to set up a business is not rocket science. I have a s-corp engineering biz and 2 llc businesses (including my candle biz). You do not need to waste yur money on a lawyer. Llc is the way to go.800 to set up an llc? That's why I left Cali. As I remember, cost me 35 bucks here in hawaii...Just my opinion but even if I think I don't need an attorney for something it doesn't mean the next person shouldn't. I don't have insurance right now b/c I'm not selling. When I did it was an LLC. Quote Link to comment Share on other sites More sharing options...
Mariam Posted April 12 Share Posted April 12 On 6/27/2012 at 5:02 AM, robertgibbens said: Determining how to set up a business is not rocket science. I have a s-corp engineering biz and 2 llc businesses (including my candle biz). You do not need to waste yur money on a lawyer. Llc is the way to go. 800 to set up an llc? That's why I left Cali. As I remember, cost me 35 bucks here in hawaii... for your llc what industry did you use for your candle business? Quote Link to comment Share on other sites More sharing options...
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