ECN Forum Forums General Topics of the Trade Business Related Discussion INC. or LLC?

INC. or LLC? I have been trying to decide which form of buisness would be better for me.Iam a one man operation just starting out any suggestions? Thanks.

Yours is a question that can only be answered by either a local trade association, or a local attorney.....thing like this vary too much by locale.

the answer is easy, for a sole proprietor, go LLC, you can do incorporate by yourself and the greatest benefit is you don't have all your personal assets on the line.

Well there is also a sub-S corp that does much the same. Maybe not so easy...

I suggest consulting with an accountant or attorney. This is not something that you want to do yourself.

-Hal

Its not that big a deal, really... do some online research for Sub S Corp and Limited Liability, if your a one man show, which you said you are, LLC is the way to go, just spend a few bucks registering your corp with the state.

Just filed for LLC im in the same boat as you romexcommando ( 1 man show) was doing sole prop with 2 mil in liability but accnt said it was time to get incorp! talked to lawyer and he said as a LLC it was easy to change to typeS at a later date if necessary!

benefits of LLC- relieves personal liability IE. if sued they can not go after your personal worth only business worth!
Also only taxed on income once! where as a s corp your co. gets taxed then your paycheck gets taxed again ( and yes you have to take a paycheck as an s corp)

So as a one man show i think LLC is the way to go !

But i would check with your lawyer and accntant

Good luck in business

Dennis

Thanks for all the replies.I found a site on the net that will incorporate you for something around 250.00 bucks.I called a lawyer from the phone book and he said it would be about 900.00 to do the same thing.Has anybody here used that kinda service? Thanks again.

romex-comando. I believe i saw in some of your other posts that you are located in nj. If so you can register your business on line. If you have the book from experior that was used used for the business test it details the steps. If not let me know and I'll try and dig up the web addresses.

Everyone else; allow me to introduce myself. I've been an electrician in nyc for the past 15 yrs doing mostly commercial and industrial work. I currently live in central nj and finally got around to taking the test this past january. I am now just waiting for the state to finalize my paperwork. Then what, I'm not quite sure yet. I'm figuring I'll try and start slow as the current gig pays very well. Although I am gettin sick of the commute. In last nites ice storm it took nearly 4hrs to get home.
Anyway I've been skulking around the forums for a while and have learned quite alot. I like the free flow of info here. It's great to be able to learn from other's experiences both positive and negative and hopefully i'll be able to make some contributions.

You might try asking your accountant if he can file your forms. I can't say what is required in your state but there may not be anything kepping you from doing your own incorp. paperwork except the time and hassel. Try looking on your state web site.

I thought the idea of a limited corp is a corp form of a partnership with members instead of shareholders. A partnership has 2 or more members. Can only 1 person be the owner of a LLC? I think it depends on the state.

Tom

found the info. this site has links for everything you need to register business in nj.
http://www.state.nj.us/njbgs/

If you poke around it also has lots of general business info. Once you register your business entity I believe you have to get a business permit in its name from the bureau of elec examiners (the ones who issue the licenses).