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The Best Business Structure For Entrepreneurs and Small Businesses
Posted On: August 27, 2009Posted In: IMwithJoe.com, Marketing Tips, Organization and Productivity, Video Blogging
Comments: 14 Responses
Just wondering what business structure you use and why you think it’s best for entrepreneurs and/or small business owners.
Personally I usually set my stuff up as a sole proprietor…doesn’t require any special filing in my state and I just report my income on my personal income tax return.
Lately I’ve been thinking about incorporating…maybe an LLC, maybe and S-corp… just wondering what some of you other business owners have done.
I know if you’re an actual brick and mortar biz, you most likely have incorporated.
But how about all you solopreneurs or those that provide a service out of your home and don’t require a building?
Are you a sole-pro? S-corp? l to the l to the c?
lemme know!
It’s always cool to see how others are structured and it helps those coming through Joeville who may be trying to pick their best option.
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August 27th, 2009 at 10:11 am
I feel you, Joe, on the brownies. My shorties are always like, WHAT HAPPENED TO THE BROWNIES? LOL, the old man be putting a hurting on them. Hahaha
Anyway, when I was running my brick and mortar business, then I had a registered S-Corp for that. And I had a Series LLC for my real estate holdings. Think these may only be available in Illinois…and maybe one other state, not sure.
Now, online, I haven’t registered anything just working as a sole proprietor, but will more than likely set up another S-Corp.
I don’t have that much fear and worry in this business because their isn’t a lot of risk of law suit or personal injury, so it is not as serious for me to risk my personal assets, unlike with my appraisal business where risk of law suit was around every corner.
I’m with Joe!
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Normal Joe (2055 comments) Reply:
August 28th, 2009 at 10:48 am
Taylor that makes a lof of sense how you explained it man…I know you got your biz handled! Thanks for the response man!
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August 27th, 2009 at 12:41 pm
When I am ready to “upgrade” I will probably go with LLC but will need to do a bit more research. For right now, I’m fine with LLC. No one is going to get much if they sue me
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Normal Joe (2055 comments) Reply:
August 28th, 2009 at 10:38 am
Yeah…me too, if I ever do lol. Sole-pro is pretty fine for my consulting and such, cuz it’s me. Maybe an llc is better when you’re making tons of products though. Hmmm…
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August 27th, 2009 at 12:49 pm
LLC – and use my home as my office for tax purposes
I opted for an LLC instead of an S-corp simply because that’s what my accountant recommended. She knows her stuff and that’s what i pay her for haha
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Normal Joe (2055 comments) Reply:
August 28th, 2009 at 10:37 am
Nice man! thanks for the response!
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August 27th, 2009 at 12:51 pm
Also in some free materials I got from Mike Filsaime a while ago, he goes into this more and he definitely was recommending LLCs. He talked about breaking things into individual units when you start to have a high income, so that every part of your business is protected from lawsuits against the other parts …
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Normal Joe (2055 comments) Reply:
August 28th, 2009 at 10:29 am
That’s usually what I hear…but I don’t like the idea of setting up a new company for everything I do! lol.
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August 27th, 2009 at 1:04 pm
Hey Joe! I’m back on the scene my man
If you want to register a corporation, it’s pretty easy to do it. I’m in the legal business and what you want is an LLC. It costs around $100 to set up and register (depending on your state) and you can get the documentation for free if you go to the website for your State Department.
S-corps offer much less flexibility than LLCs, and with an LLC structure you can exist in a more favorable taxation environment that doesn’t hit you too hard
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Normal Joe (2055 comments) Reply:
August 28th, 2009 at 10:28 am
What the feezy! Jim! Whatup man lol…how ya been bro?
Thanks for stopping by man, I’ve heard many people say llc is the way to go, and I know there are many places online that will set it up for you, or your sec of state website. We can do that stuff online as well.
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August 27th, 2009 at 2:18 pm
hey joe,
I think company types are kinda similar here in the UK. We have an Ltd (or Limited Company) which I’m pretty sure is the same as an LLC
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Normal Joe (2055 comments) Reply:
August 28th, 2009 at 10:27 am
yeah, cool man. thanks!
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January 13th, 2010 at 3:33 pm
company types are kinda similar here in the UK. We have an Ltd (or Limited Company) which I’m pretty sure is the same as an LLC
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Normal Joe (2055 comments) Reply:
February 1st, 2010 at 11:02 pm
thanks for the response
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