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

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

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www.sageva.com
Shelley Halpain,

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.

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

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Danielle Kubus
http://wisevirtualsolutions.com

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.

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.

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Angie
Blue Water Business Services

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

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Action Jackson Virtual Assistant|

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

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

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

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Deb Howard Greenleaf, Certified QB ProAdvisor
Virtual Bookkeeping & QB Consulting

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

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Winston Stewart
PennWin Administrative Services