Legal: Business Type

[ATCO]

This question is for those who have had to form their own business.
What are the advantages or Dis-advantages of business types in this feild.

Limitied Liability Corp.
or
Sole Proprietor
or
Partnership



Thanks in advance. I am seriously considering forming an LLC.

-Joe Bohannon
Bakersfield, CA
(New B, Researching)

 

[Glen Rice]

Time to visit a CPA for tax advise. Most are set up as sole propietorship operation to limit costly and unnecessary taxes. I doubt if you want to pay taxes yearly on the value of all your companys assets? Good luck.

 

[ATCO]

One more note. I'll be orginizing a company, which will take care of all aspects of this operation. I am not signing up with a carrier. Anotherwords, I'll have to pay taxes on all assets anyways...

-Joe Bohannon
Bakersfield, CA
(New B, Researching)

 

[RichM]

I am a S Corporation,I will send you a PM as too the advantages I see in being a S Corp.

 

[hedgehog]

I drive my van for various companies.

About four (4) years ago I was told by my attorney and auditor that the best way for me to go was a simple LLC.

Mainly, because I drive for myself, and there is nobody else financially attached to my company. If I have to hire another driver on a temporary basis, I pay cash. That doesn't happen very often, though.

I incorporated with the State of Ohio, so I am not sure what the corporate laws are in other states.

However, I do run the same midwest freight lanes, talk to lots of drivers and am really surprised how very few are incorporated.

It took all of $125.00 and about 15 minutes to fill out the paperwork myself. Total time was about 10 business days.

A huge advantage for me was easier tax forms as a LLC and, I now qaulified to buy workmen's comp at a reduced rate of 95% off the yearly total. (That was four years ago, and since then, the rates have skyrocketed because of a slow stock market)

Again, the LLC I applied for was just myself as ceo, indian, chief bottle washer, etc., etc.

Also, I received many applications for discounted offers from COSE to insurances, etc., etc. (The State of Ohio publishes all the New Corporations Applied For every so often as prescribed by law, so this is where other vendors find new contacts.)

Hope this helped

 

[RichM]

Another advantage is after you have been a S Corp or LLC after a while everyone wants to loan you money at very good rates.

 

[ATCO]

Well gys,
I'm in the process of filing my LLC paperwork

-Joe Bohannon
Bakersfield, CA
Wannabe

 

[ATeam]

The advantages of a sole proprietorship include the simplicity of the business form and light administrative burden when compared to other business forms. For a one-truck operation where the truck owner(s) drive the truck, I know of few advantages the other business forms provide that can not be otherwise obtained as a sole proprietor.

If I was running a multi-truck operation with drivers other than the truck owner(s) driving the trucks, I'd incorporate in a heartbeat because of the liability advantages a corporation can provide.

 

[DocRushing]

S corporation?
Income-tax implications?
Dividends versus earned income?
Minimization of payroll tax or self-employment tax?
Reimbursement plan for dental and medical expenses?
Doc.

 

[Tom Robertson]

Doc...

touché... those, gentlemen are some of the reasons for an S corp...

also to be considered is a LLC.

Another major reason to incorporate is a separation of business assets from personal assets. Contact an experienced attorney for a consultation. It is relatively inexpensive to incorporate and you can do most of the work yourself...but you need to know how this process can protect you and provide deductions not available to you as a sole proprietor.

Write your questions down and then request a one hour consulting session with an experienced attorney. Keep to the subject. Attorneys have many ways to prolong the session, by getting you to talk about things you are interested in... you can say something like... ‘I’d be glad to talk with you about that after our session and off your billing clock, but in the mean time... my next question is....”

The idea is for you to put more in your pocket...not to give it to the attorney!

 

[RichM]

It cost me $295.00 to get my S Corp set up,well worth it.Did it all by phone with a Law firm that specializes in that. Nowadays I am sure you could probably do it over the internet.