Home | Community | Message Board

Sporeworks
This site includes paid links. Please support our sponsors.


Welcome to the Shroomery Message Board! You are experiencing a small sample of what the site has to offer. Please login or register to post messages and view our exclusive members-only content. You'll gain access to additional forums, file attachments, board customizations, encrypted private messages, and much more!

Shop: Unfolding Nature Unfolding Nature: Being in the Implicate Order   Bridgetown Botanicals Bridgetown Botanicals   Kraken Kratom Red Vein Kratom   Left Coast Kratom Kratom Powder For Sale   PhytoExtractum Kratom Powder for Sale

Jump to first unread post Pages: 1 | 2 | Next >  [ show all ]
Invisibleloladoreen
 User Gallery

Registered: 05/25/20
Posts: 5,325
Business start up
    #28107378 - 12/21/22 01:20 PM (1 year, 1 month ago)

Sole proprietor or LLC?
Which is best & why


--------------------
“One doesn’t have to operate with great malice to do great harm. The absence of empathy and understanding are sufficient.”


Extras: Filter Print Post Top
OfflineDave Bowman
Albert Hoffmans Apprentice
Male User Gallery


Folding@home Statistics
Registered: 08/30/07
Posts: 2,104
Loc: Your Imagination
Last seen: 3 months, 22 days
Re: Business start up [Re: loladoreen]
    #28107437 - 12/21/22 02:12 PM (1 year, 1 month ago)

Incorporating as an LLC shields you from legal responsibility if you were to get sue.  The Company then becomes a legal entity and would be the entity involved in any lawsuits as an LLC.

As a sole proprietor, you bare 100% of the legal burden should someone file a lawsuit against your business.  It's definitely something to consider given how anyone will sue for literally anything nowadays.


Extras: Filter Print Post Top
Invisibleloladoreen
 User Gallery

Registered: 05/25/20
Posts: 5,325
Re: Business start up [Re: Dave Bowman]
    #28107454 - 12/21/22 02:27 PM (1 year, 1 month ago)

Insurance wouldn’t cover a lawsuit?


--------------------
“One doesn’t have to operate with great malice to do great harm. The absence of empathy and understanding are sufficient.”


Extras: Filter Print Post Top
OfflineDave Bowman
Albert Hoffmans Apprentice
Male User Gallery


Folding@home Statistics
Registered: 08/30/07
Posts: 2,104
Loc: Your Imagination
Last seen: 3 months, 22 days
Re: Business start up [Re: loladoreen]
    #28107702 - 12/21/22 05:28 PM (1 year, 1 month ago)

It depends on your coverage and provider, but there is strict verbiage in what is covered and what is not.  Insurance won't be able to protect you from criminal legal issues, either.  A LLC can be sued in civil court or criminal court, just like an individual.  If your company faces some type of criminal charges, as a sole proprietor you are being charged directly instead of the LLC legal entity.


Extras: Filter Print Post Top
Invisibleloladoreen
 User Gallery

Registered: 05/25/20
Posts: 5,325
Re: Business start up [Re: loladoreen]
    #28107714 - 12/21/22 05:36 PM (1 year, 1 month ago)

Ok, good to know.
Thank you


--------------------
“One doesn’t have to operate with great malice to do great harm. The absence of empathy and understanding are sufficient.”


Extras: Filter Print Post Top
OfflinegeokillsA
∙∙∙∙☼ º¿° ☼∙∙∙∙
Male User Gallery

Registered: 05/08/01
Posts: 23,417
Loc: city of angels Flag
Last seen: 11 minutes, 53 seconds
Re: Business start up [Re: loladoreen]
    #28107721 - 12/21/22 05:42 PM (1 year, 1 month ago)

There are certainly some businesses which involve minimal risk, that can be run relatively comfortably as a sole proprietorship... I'd guess primarily those that operate virtually, such as online reselling and some simple digital contractor work.  But as has been elucidated above, a dedicated business entity is an important way to shield yourself and your personal assets from potential liabilities derived from your business operations.  In other words, if your business goes bankrupt, it doesn't mean you need to go bankrupt along with it.  Limited Liability Companies (LLC's) and S-Corporations are typically the preferred vehicles for small businesses to use toward this end.


--------------------

--------------------
··∙   long live the shroomery  ∙··
...π╥ ╥π...


Extras: Filter Print Post Top
Invisibleloladoreen
 User Gallery

Registered: 05/25/20
Posts: 5,325
Re: Business start up [Re: geokills]
    #28107739 - 12/21/22 05:54 PM (1 year, 1 month ago)

Wow
It’s all online/zoom


--------------------
“One doesn’t have to operate with great malice to do great harm. The absence of empathy and understanding are sufficient.”


Extras: Filter Print Post Top
InvisibleAhab McBathsalts
OTD Windmill Administrator
Other User Gallery Ultimate Champion: Blackjack


Folding@home Statistics
Registered: 11/25/02
Posts: 35,107
Loc: Wind Turbine, AB Flag
Re: Business start up [Re: loladoreen]
    #28107813 - 12/21/22 06:36 PM (1 year, 1 month ago)

Depends on the business. Your annual accounting and legal fees for incorporating with be a couple of grand. Doesn't make sense to incorporate unless you are doing 30-50k of profit a year I'd figure.


--------------------
"Nobody exists on purpose. Nobody belongs anywhere. Everybody's going to die."


Extras: Filter Print Post Top
Invisibleloladoreen
 User Gallery

Registered: 05/25/20
Posts: 5,325
Re: Business start up [Re: Ahab McBathsalts]
    #28107847 - 12/21/22 06:57 PM (1 year, 1 month ago)

I think there’s always potential to be sued. In my field - Usually it’s from breaching confidentiality, breaking the laws, inappropriate behavior, etc.
I don’t do stuff like that.
I really need to look into it more.


--------------------
“One doesn’t have to operate with great malice to do great harm. The absence of empathy and understanding are sufficient.”


Extras: Filter Print Post Top
Offlinewhatisanerd
<*_*>
I'm a teapot


Registered: 09/22/22
Posts: 507
Loc: Midwestican
Last seen: 13 days, 3 hours
Re: Business start up [Re: loladoreen]
    #28107922 - 12/21/22 08:07 PM (1 year, 1 month ago)

Do you have an accountant? That's a solid starting point from my experience. However, the shroomery may be a close second :stoned:

I have real estate in series LLCs but my main biz is an S Corp for taxation purposes.


--------------------
(♥_♥) LAGM 2023

 


Extras: Filter Print Post Top
Invisibleloladoreen
 User Gallery

Registered: 05/25/20
Posts: 5,325
Re: Business start up [Re: whatisanerd]
    #28107988 - 12/21/22 09:06 PM (1 year, 1 month ago)

No
Id also do my own billing.


--------------------
“One doesn’t have to operate with great malice to do great harm. The absence of empathy and understanding are sufficient.”


Extras: Filter Print Post Top
Offlinemyranbou
Stranger
Registered: 01/02/23
Posts: 1
Last seen: 1 year, 26 days
Re: Business start up [Re: loladoreen]
    #28120840 - 01/02/23 08:31 AM (1 year, 26 days ago)

I think it depends on the business itself. If you're the only owner of a small store, why register as an LLC? It doesn't make sense. For example, I found an article on Client Verge about what you need to know when starting a company. But then again, this`s about a specific business. Opening a sole proprietorship, in terms of starting up, is the easiest of all the options. On the other hand, if the business is sued or has accumulated debts, you're personally liable. Creditors can sue for your home, car, savings and other personal assets to pay off the debts of the sole proprietorship. If you have partners, you can incorporate LLC at least that way you can share responsibility. It's up to you.


Edited by myranbou (01/02/23 08:32 AM)


Extras: Filter Print Post Top
Invisibleloladoreen
 User Gallery

Registered: 05/25/20
Posts: 5,325
Re: Business start up [Re: myranbou]
    #28121052 - 01/02/23 11:14 AM (1 year, 25 days ago)

It is not a store.


--------------------
“One doesn’t have to operate with great malice to do great harm. The absence of empathy and understanding are sufficient.”


Extras: Filter Print Post Top
Invisibleloladoreen
 User Gallery

Registered: 05/25/20
Posts: 5,325
Re: Business start up [Re: myranbou]
    #28121108 - 01/02/23 12:02 PM (1 year, 25 days ago)

I do not feel comfortable stating what the business is. I don't know what I can say without .. opinions, judgment,, I dont know this board can be harsh. Does it matter what field it is? Do you need to know in order to best give advice?

I will not having any employees for one year.
My plans are big and well thought out.
I will start a non profit, and two for profit businesses within the next 6 months.

I have been looking at loans.
I want to do a training to get certified in something and it costs 5K, but inside that cost the trainer assists me from start to finish in setting up my business. I cant find any loans... they want me to already have it complete before I get a loan.... so far.
After that training I am guaranteed a certain income because I will contract my work. All work is from home. I will make an office here.
My field is not a lucrative field, I do not plan on making lots of money. I plan on helping people and fulfilling a need in my community while doing something I love.


--------------------
“One doesn’t have to operate with great malice to do great harm. The absence of empathy and understanding are sufficient.”


Extras: Filter Print Post Top
Offlinehigh_desert
Pipe and Paper Afternoon
 User Gallery


Registered: 10/25/16
Posts: 319
Loc: Hidden Study
Last seen: 11 months, 5 days
Re: Business start up [Re: Ahab McBathsalts]
    #28122390 - 01/03/23 10:17 AM (1 year, 25 days ago)

Quote:

Ahab McBathsalts said:
Depends on the business. Your annual accounting and legal fees for incorporating with be a couple of grand. Doesn't make sense to incorporate unless you are doing 30-50k of profit a year I'd figure.




Why would you have annual legal fees though? And is filing that much more complicated through a single person LLC than it would be with a sole proprietorship? I would think accounting fees would depend more on the nature and size of the business unless maybe you have multiple members.


Extras: Filter Print Post Top
Offlinehigh_desert
Pipe and Paper Afternoon
 User Gallery


Registered: 10/25/16
Posts: 319
Loc: Hidden Study
Last seen: 11 months, 5 days
Re: Business start up [Re: loladoreen]
    #28122427 - 01/03/23 10:40 AM (1 year, 25 days ago)

Quote:

loladoreen said:
I do not feel comfortable stating what the business is. I don't know what I can say without .. opinions, judgment,, I dont know this board can be harsh. Does it matter what field it is? Do you need to know in order to best give advice?

I will not having any employees for one year.
My plans are big and well thought out.
I will start a non profit, and two for profit businesses within the next 6 months.

I have been looking at loans.
I want to do a training to get certified in something and it costs 5K, but inside that cost the trainer assists me from start to finish in setting up my business. I cant find any loans... they want me to already have it complete before I get a loan.... so far.
After that training I am guaranteed a certain income because I will contract my work. All work is from home. I will make an office here.
My field is not a lucrative field, I do not plan on making lots of money. I plan on helping people and fulfilling a need in my community while doing something I love.




The pluses of LLC are limiting your personal liability for debts the business incurs and some flexibility in tax filing. It does make a difference what kind of business because different business have different likelihood of incurring debts. I would think if your company isn't something that can rack up a bunch of debt in a catastrophe that will personally bankrupt you then it's probably not worth the trouble. It might help shield from torts somewhat but the main thing is debt.

Also sometimes you can get better tax rates filing as a corporation, you have this option but not obligation with an LLC. This is something you'd have to look into as to whether this makes sense for your circumstances.

The downsides to forming an single person LLC as far as I know are just some extra annual paperwork for the state and some upfront legal fees if you can't do the forms for formation yourself. Most states have cheap annual filing fees around 100 bucks..


Extras: Filter Print Post Top
Invisibleloladoreen
 User Gallery

Registered: 05/25/20
Posts: 5,325
Re: Business start up [Re: high_desert]
    #28122495 - 01/03/23 11:36 AM (1 year, 24 days ago)

I would not be racking up any debt. I would he providing a service.


--------------------
“One doesn’t have to operate with great malice to do great harm. The absence of empathy and understanding are sufficient.”


Extras: Filter Print Post Top
Invisibleloladoreen
 User Gallery

Registered: 05/25/20
Posts: 5,325
Re: Business start up [Re: loladoreen]
    #28131946 - 01/09/23 09:45 AM (1 year, 19 days ago)

I decided LLC.
I have applied for business loans and I am told I can't get one until I have already started.
Is anyone aware of a startup business loan?


--------------------
“One doesn’t have to operate with great malice to do great harm. The absence of empathy and understanding are sufficient.”


Extras: Filter Print Post Top
OfflinegeokillsA
∙∙∙∙☼ º¿° ☼∙∙∙∙
Male User Gallery

Registered: 05/08/01
Posts: 23,417
Loc: city of angels Flag
Last seen: 11 minutes, 53 seconds
Re: Business start up [Re: loladoreen] * 1
    #28132085 - 01/09/23 11:22 AM (1 year, 18 days ago)

If you can't prove that your business is viable and able to generate income, you will have to collateralize your loan with other assets.  If you are a homeowner, you could look toward something like a HELOC (home equity line of credit) to tap into your property value, however interest rates are growing increasingly less friendly as the Fed continues its battle against inflation, and HELOC rates are not fixed (i.e. they do reset periodically based on market rates).

If you don't have an asset that you can use as collateral for a loan, your next best bet is talking to friends and family and seeing if they might help kick start your operation.  Perhaps even something like a GoFundMe campaign, although that'll be tricky to promote if you're not wiling to go into public detail about your business.


--------------------

--------------------
··∙   long live the shroomery  ∙··
...π╥ ╥π...


Extras: Filter Print Post Top
Invisibleloladoreen
 User Gallery

Registered: 05/25/20
Posts: 5,325
Re: Business start up [Re: geokills]
    #28132090 - 01/09/23 11:29 AM (1 year, 18 days ago)

I own my home. Can I use that?
There are no services like this offered where I live. So I would be it for a few counties. It will be successful. I am in school fulltime right now and do not currently have an income- hence the loan for startup.
I don't have anyone to borrow from.


Extras: Filter Print Post Top
Jump to top Pages: 1 | 2 | Next >  [ show all ]

Shop: Unfolding Nature Unfolding Nature: Being in the Implicate Order   Bridgetown Botanicals Bridgetown Botanicals   Kraken Kratom Red Vein Kratom   Left Coast Kratom Kratom Powder For Sale   PhytoExtractum Kratom Powder for Sale


Similar ThreadsPosterViewsRepliesLast post
* Saving money. (how to?) PDU 1,055 3 01/05/08 07:54 AM
by Ego Death
* STOCKS - An Intro Tutorial & Ongoing Discussion
( 1 2 3 4 ... 289 290 )
geokillsA 296,580 5,796 01/22/24 08:56 PM
by geokills
* Cryptocurrency: A Discussion on Bitcoin, Ethereum and Related Projects
( 1 2 3 4 ... 500 501 )
geokillsA 250,325 10,002 01/27/24 05:04 PM
by geokills

Extra information
You cannot start new topics / You cannot reply to topics
HTML is disabled / BBCode is enabled
Moderator: geokills, automan
719 topic views. 0 members, 2 guests and 2 web crawlers are browsing this forum.
[ Show Images Only | Sort by Score | Print Topic ]
Search this thread:

Copyright 1997-2024 Mind Media. Some rights reserved.

Generated in 0.029 seconds spending 0.005 seconds on 14 queries.