My question is , should I do an LLC or sole proprietor?
This is a personal question, with many determining factors. I can only tell you what I’ve done, not what you should do.
My business is a Delaware holdings corporation that owns my local state LLC that acts as an S-Corp.
Delaware companies do not show the owner without subpoena (If sued), LLC held in my state is best for Liability, operating as an S-Corp for taxes.
Welcome to our forum, Kristopher!..Enjoy!
More direct to your question, it pays to get a CPA to help with your decision.
The InterNachi site has an article that discusses this subject. As a Newer Member, you have likely already been directed to it.
I have been wrestling with this question for a couple weeks. That’s why I’m calling a CPA tomorrow. I’ve researched the subject and have a fairly good understanding of the different business structures, but not enough to make a fully informed decision on which I should choose. A CPA will likely need a few questions answered to determine which route is right for your situation and business plan. It might cost a couple hundred dollars, but could save you thousands over time.
I am at a roadblock in my start up. I ran out of funds for start up and still need some equipment. Is there any grant programs that might help me? thank you
I don’t know of any grant programs, Justin.
But, welcome to our forum!..Enjoy!
Getting a good CPA is without a doubt one of the best business decisions I’ve ever made.
In a Nutshell, Undoubtedly Register a Limited Liability Company (LLC).
If this is going to be what you are going to be doing professionally (seriously), register a LLC.
Now, keep your LLC business operations ‘separated’ from your ‘personal financial life’. Best way to understand this is “Do not do your home groceries with the business checkbook!”
Once you ‘break the veil’ of separation of your LLC operations to ‘conveniently’ take care of a personal need, you have ‘Open the door’ to any attorney to get across too and go after your ‘personal belongings’ EQUAL your wife’s car, your children’s college savings, your XBox…!
The LLC will limit your liabilities to only those assets backing up your company, but if you are trying to be ‘clever’ and are trying to benefit your personal life by mixing “business and pleasure”, you are on to have a bunch of deputies picking up stuff from your living room.
Don’t get me wrong, you can draw money and pay yourself from your LLC. Move the funds to your personal checking and then ‘go party’…!!
Yo do not need to pay yourself a salary of write a paystub for yourself, that is a safe choice, but simply “Do not do your kitchen grocery shopping with the como checkbook or the company credit or debit card”.
The Plaintiff attorney said: “Your Honor, if he can cross the river from his LLC to his bedroom, Why can’t we?”
and… Yes… ask your CPA to file your Tax Returns as an “S Corporation”…
The Sole Proprietor is ‘cheaper’ option to run your business, until you get your first invitation to a Court House.
And by the way, you don’t need to be wrong to get one of those invites. Most people (customers and referral realtors) do not understand the scope of the Minimum Standards of “Our Trade” as Home Inspectors.
Ah! The best way to avoid one of those Court House Invites is to stick to the minimum standards and do not try to show off mixing your smoke Builder and construction pass experience with the job at hand: “The Home Inspection”… AT THE TIME OF THE INSPECTION WE OBSERVE, NOTE, CALL OUT and REPORT. Keep your tech-opinions to yourself and NEVER include those savvy clever smart recommendations in your report in writing.
YOUR OBSERVATIONS are not future predictions, you don’t know if the “Internal Strength of the Building Materials will or will not reach its Molecular Fatigue, the minute you drive away from that site, How could you know that?” … then keep your mouth sipped. Who are you trying to impress? Did they hire you and pay you as an Engineer? No! They hire and will pay you inspection fees as an inspector, stick to your role…!!
Learn to use in and out the expression: “Need further evaluation by a Licensed State Plumber, Roofer, Builder, Architect, Structural Engineer, Master Electrician, HVAC Technician, and do on and so forth…!!