Business Entity Poll - Virtual Assistant Forums

hbplifestyle · #1 (**permalink**) 06-05-2009

If you can share with me why you chose that business entity that would be helpful too.

ShelleyH · #2 (**permalink**) 06-05-2009

If the company gets bigger I will go with an LLC or incorporate but for now a SP works for my purposes.

Tess · #3 (**permalink**) 06-05-2009

Hi Collette, I don't see this on the list, but we are an LLP [Limited Liability Partnership] - my husband and I - it was the direction we chose after seeking advice here on the forums and works well for us for tax purposes, etc.

Savvy Virtual Assistants · #4 (**permalink**) 06-06-2009

In Florida my husband and I went with LLC for tax reasons and it is working well for us ;D

Thompson Office Support · #5 (**permalink**) 06-30-2009

Sole Proprietorship works for me for right now. I chose SP specifically because it was quick and easy to startup business. I may take a look at LLC in the future.

bluewaterbusiness · #6 (**permalink**) 06-30-2009

My attorney suggested starting with a SP. I was considering a LLC, however, he said that the limited liability it would extend would not apply to bookkeeping errors and omissions. That I would need error and omissions insurance anyway. As my business grows I will re-evaluate what business entity will work best at that time for tax purposes.

Action Jackson VA · #7 (**permalink**) 06-30-2009

I am glad you told us that Angie. I was doing the paper work for my LLC, but now that I have learned about the error's and omissions not being covered under an LLC. I wonder if INC would be better. Anyone know if Inc. would be better for those who do bookkeeping?

Thanks in advance for any thoughts on it.
Andrea

Office Goddess · #8 (**permalink**) 07-01-2009

Originally Posted by Action Jackson VA

I am glad you told us that Angie. I was doing the paper work for my LLC, but now that I have learned about the error's and omissions not being covered under an LLC. I wonder if INC would be better. Anyone know if Inc. would be better for those who do bookkeeping?

I would STILL do E&O insurance, no matter what form your business takes.

I chose LLC because IMHO it seems more 'business like' than a SP and provides a legal business start date when filed with the Secretary of State. As far as liabilities, anyone who sues will most likely name the individual as well as the company, which is why I bought E&O insurance, as well. Not that I plan on making mistakes

debhowardgreenleaf · #9 (**permalink**) 07-01-2009

I'm with Lily on this one. I'm an LLC taxed as a SP because that gives me the best liability protection for my business. My bookkeeping & QuickBooks consulting services are services that I personally provide, however, so a disgruntled individual could sue my business and me, personally, as the service provider. By maintaining a healthy E&O policy for my bookkeeping/accounting/QB/tax work, then I'm covered no matter who/what they sue!!

Before LLC-ing, though, I would check to see what your state's filing requirements are. In PA, the annual paperwork is minimal and a small busines like mine doesn't pay any "LLC" taxes (aka Capital Stock Tax). I've heard that some states charge an annual fee upwards of $300 for LLC's, though ... yikes!

HTH!
Deb

Stewartwin · #10 (**permalink**) 07-02-2009

Currently I operate as a SP. However, if I start expanding I will go LLC for asset protection (you never know) and tax purposes.

JoCarole · #11 (**permalink**) 07-02-2009

I set up my business as an LLC. I pay annual fees in NJ of $50.00 I don't have E & O insurance but that is definitely something I intend to get....

hbplifestyle · #12 (**permalink**) 08-12-2009

Sorry it's been awhile since getting back to this topic. After I posted this message I was contacted by a business that walks a person through creating an entity. The good news is they are offering to create a podcast and post to this group. PM if you'd be interested. I'm hoping it would be informative for all of us. Sounds like they would explain the pros and cons and how to go about creating one.

barnes4hire · #13 (**permalink**) 08-12-2009

My plan is to setup my business as an LLC. I formulated a parent company two years ago and as a result of extensive research and experience, a LLC setup works best for my needs. Primarily due to the fact that a LLC setup protects the personal assets of its members and to me offers the professionalism of a Corporation without the Corporate tax burdens.

Sheila

GalFriDee · #14 (**permalink**) 08-13-2009

As a start up, I am a sole proprietor...however, I intend to change to LLC as business picks up.

Offsite Office Professionals · #15 (**permalink**) 08-21-2009

I chose LLC for asset protection and tax purposes. I've owned a corporation and an S corporation in the past and feel the the LLC serves my VA business needs best. I have a genealogy research business that is currently a SP but it's growing and I feel it's time to switch it to an LLC or possibly change it to a DBA under my VA business. Need to talk to the tax man.