How to structure your business? LLC - Corp or S-Corp

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CacheHX

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How to structure your business? LLC - Corp or S-Corp


I would like to start up a detailing business an I have been doing a little research on what type of business to go with... an LLC, a corporation, S-Corporation, etc...

I think I am kinda leaning towards an S-Corp. but not real sure. :work:

In your experiences with detailing biz what would you recommend or think would be best for this type of business.


For now it will just be me running this thing but I would like to grow it into something a little bigger with a few employees and also possibly retail products used for detailing.

any input would be greatly appreciated.


:xyxthumbs:
 
Re: what to use for detailing... LLC, Corp, S-Corp,etc...

CacheHX said:
I would like to start up a detailing business an I have been doin a little research on what type of business to go with... an LLC, a corporation, S-Corporation, etc...
Click to expand...
This is a real serious decision. You might find it real worth your while to pay for an hour of legal time.
 
Re: what to use for detailing... LLC, Corp, S-Corp,etc...

I do realize this is a serious decision an I plan to talk to some people about it; like my current boss, as he is a CPA, and a few other people I know. but I would like to have as much of a heads up on it all before I talk to them. I figured this would be the place to start, as many of you are doing what I plan to do.

thanks
 
Re: what to use for detailing... LLC, Corp, S-Corp,etc...

Hey HX,

We're family owned and operated and have an LLC for the sole purpose of separating our personal assets from our business assets. Being such we benefit from the distinction, where a customer shopping our services more times than not will go with a company that has some sort of formation over fly-by-nights. We pay $300.00 a year for it, which is fine. I think the annual fee should be enough for the state The downside of going to an LLC over a Sole Proprietorship is the paperwork this time of year, which sucks. If they wanted more from my pocket they should send out their paperwork with Crayola directions or do it themselves, instead you need to be pretty well versed on the taxes or hire someone.

I'm assuming your working for the CPA gives you a good idea of what each covers and how they benefit. This should be an interesting thread to gauge how other professionals across the country are established.

Keep in mind also that you'll want business insurance. You probably know this but someone else reading it may not.

Good Luck!
 
Re: what to use for detailing... LLC, Corp, S-Corp,etc...

The form of organization basically reduces itself to a liability issue when deciding on the difference between an LLC or S-Corp vs. a sole proprietorship. You really need to consult an attorney but the short answer I would offer you is probably the LLC is the way to go.

You shelter any liability within the LLC and generally will not look to your personal assets for any resitution. There is additional filings and formation papers that need to be prepared and that will cost you $$ but it is definetly money well spent. An S-corp for a small business that will be closely held is probably too much fire power.

Again, as you said, consult your attorney and your accountant. I am not familar with your state requirements so, I can't comment on the form of organization where you will operate your business.

Hope this is helpful. Good luck with your new venture!
 
Re: what to use for detailing... LLC, Corp, S-Corp,etc...

My lawyer recomended a LLC for me, As stated above my biggest concern is protecting my personal assets and this does it.
 
Re: what to use for detailing... LLC, Corp, S-Corp,etc...

I chose an LLC. However, find a good business lawyer and ask them.
 
Re: what to use for detailing... LLC, Corp, S-Corp,etc...

On the banking side of it, we have seen many more LLC's versus Inc's in the past several years. It is however important and worth the small investment to see an accountant prior making decision, the plain truth is tax laws (and loopholes) change yearly and they will usually be best informed to help protect you and keep your taxes and liabilities to a minimum.
 
Re: what to use for detailing... LLC, Corp, S-Corp,etc...

We just learned the hard way on our LLC filing thru LegalZoom that our CPA would have done everything for over $100 less. Don't make the mistake we made.Consult with someone that knows the correct ways of doing the paperwork so it is done one time and over.A lot of people have asked us why we formed an LLC on our part time Detailing and supply business and our answer is we want to cover our ass in a sue hungry world and hoping one day we can be supported solely by our companies income....
 
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