Very helpful and interesting responses.

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Sarah Waugh
The Ruby Slipper VA

I agree with most of th post here, I write myself a check. It simple and worry free so it's for me! I made a rhyme!

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Shan Bennifield
www.data-n-design.com

In regards to LLC and Sole Proprietorship, what are the average fees for these, and do you set them up on county or state level? Do you need to register as either? I've had Princess House and Avon businesses and also my own business when I was a real estate agent and never did either. Are there advantages to them? Sorry! lol. Totally new to all this and I want to make sure I do it right.

Responding to the fees for the LLC and SP, I'm not sure if they are different by state, however in Ohio... SP $50 and LLC $125. Plus other fees such as if you are using a name other than your name you have that registered (another $50) and possibly a vendor's license $25.

Just like you, I want to make sure I am doing everythiing right from the start.

You might want to check your state's website under small business.

Hope this helps.

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Sherri Lynne Barlow
Sequoia Virtual Business Solution

LOL! Thanks so much Lynne! I went to the group for Ohio to check out pricing on everyone's sites and saw your welcome aboard post. I had to figure out which post you replied to. lol. Must have been fate! lol. Any advice you can give me for our great state will be greatly appreciated.
Serita

No problem Serita! I know I was thinking this had to be the same person! You may want to check out http://business.ohio.gov/ and click on Business 1st Stop. After answering a few questions, it will put together a Free business information kit. In this you will have all the form necessary to at least be registered and licensed correctly in the state of Ohio. I still have not decided whether or not to form an LLC now.

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Sherri Lynne Barlow
Sequoia Virtual Business Solution

If you start as a sole proprietorship, I would think you could change to an llc at will. That's how it was in Florida.

Very helpful! Thanks. I went and did that right away.

Oh, yes, that is true about changing to the LLC. I think that is the way that I am leaning.

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Sherri Lynne Barlow
Sequoia Virtual Business Solution

I agree with the comment about not comingling your funds. You definitely want to have a separate bank account for your business regardless of your business structure. Keep in mind that as a sole proprietor, you pay a lot more in employment taxes. With an S-Corporation or LLC electing to be treated as an S-Corp, you will pay yourself wages as an employee of the company. That portion will be subject to employer & employee taxes, so you want to keep it as low as possible (but reasonable to avoid questions from the IRS). Any additional profit will only be taxed once at your individual tax rate. As far as the logistics of paying yourself, you can just write yourself a check from the business banking account. Just remember to withhold for taxes. If you use bookkeeping software, the process is extremely simple. The software will compute your withholdings automatically.