At this time, circumstances have prevented me from going forward with my plan to become a single member LLC. While I am disappointed, I plan to move forward with that in the future.

I am simply spinning my wheels and need to get moving with my business, which brings me to these questions: Are there any sole proprietors out there? Have you found it problematical to run your business income through your personal 1040? Any advice warnings or advice? Thanks!

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Collaborative Business Support

I have decided to run my business as a sole proprietor, too. So I look forward to seeing the answer to your questions. Thanks for posting this!

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Liz
Blue Canary Design & Virtual Assistance

What are your reasons for wanting to be an LLC?

I run my business as a sole proprietor. I didn't see much benefit from the added paperwork and complexity of an LLC, but wonder if I'm missing something. As an LLC you still run your business expenses through your 1040. There is apparently some liability protection with an LLC, which is a consideration. I intend to carry business liability insurance, though, and would have under the LLC as well.

I have been in this business less than a year, but was in my prior business for 15 years as a sole proprietor (and carried liability insurance). Because of that all my profits were subject to self-employment tax. Though that was a large expense, I wanted that protection. I am now nearing retirement during this terrible economic time, my savings gutted by the financial turmoil, and am incredibly grateful that I will have that social security.

I'm interested in how others think about this.

Leanne

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WorkSmart, Administrative Assistance
When one of you is not enough

I just recently started my VA business and chose to go as a sole proprietor. I did look into other avenues but was not able to afford them. I am very curious to see what the benefits of LLC are for other Va's though.

I opted for llc for a combination of the liability protection and the 'legitimacy' registering with the secretary of state gave me. In Colorado, the paperwork was minimal (a 1-page on-line form) and my filing fee 4 years ago was $10. I think it's now $50 to file but the annual report is still only $10.

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"

Same here ,

I'm also starting out as a sole proprietor !
I'm looking forward to the answers and information that will be provided !

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Mak's VA Services
Magdaline Makris

I run my business as a sole-proprietor as the fee for filing in PA is $150 and there is an annual fee of $380 (which seems to increase almost yearly). I do however carry E&O insurance to cover myself against loses due to errors and omissions but did not see the benefit of becoming an LLC.

Because I no longer offer bookkeeping to new clients I have chosen to remain as a sole proprietor.

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Lee Drozak
My Office Assistant

I am also a sole proprietor due to the cost of establishing an LLC in New York. It's $200 for the Articles of Organization, $20 to reserve the name and $50 for the Certificate of Publication. That doesn't include the cost of publishing the establishment of your business in at least two newspapers over a span of time. When I saw that the state was charging $10 just to get the state seal on a certificate I decided to stay with being a sole proprietor. I will wait until I am more established as a business before I take another look at becoming an LLC and weigh the pros and cons before I make a change.

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Margaret
Helping You Build Your Empire

Originally Posted by Office Goddess

I opted for llc for a combination of the liability protection and the 'legitimacy' registering with the secretary of state gave me. In Colorado, the paperwork was minimal (a 1-page on-line form) and my filing fee 4 years ago was $10. I think it's now $50 to file but the annual report is still only $10.

I consulted with a business attorney, who advised that I should operate under a Single Member LLC entity. I liked the suggestion, especially because of what you mentioned: I can register with my State Corporation Commission and reserve my business name. The fee in my state is $100 to register, not including the cost of filing the Agreement. Sole proprietorship in my city is $45. I'm not sure of the cost to file a fictitious name.

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Collaborative Business Support

I have been in business over 15 years and have been a sole proprietor the entire time. My friend has been in the same business for probably about 10 years and is a sole proprietor. I've had no problems with clients or taxes; neither has my friend.

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Pam Deyerle - Transcriptionist in the Richmond, Virginia area
The Perfect Word Transcription Services