I am trying to decide how i want to set up my business. I am leaning towards sole owner. Does anyone have any experiences or advice--I am in PA.

thank you

I am also leaning toward sole proprietor, since it's just me and I want to keep things as simply as possible. I'm interested to hear what others say though...

After doing some research, I decided to register my business as a sole proprietorship. Not only because is it the easiest to form but because this form of business best suits my situation.

Your decision should be based on issues of liability exposure, number of owners involved, taxes, and any future expansion plans. You can also check with your local, state, and federal departments in your area.

Sonya

FOr liability reasons, LLC is a great option... but it can be really expensive for a new business. For example, in California, a LLC needs to pay $800 in taxes up front. That may not seem like much, but to a new business on a shoestring-- it could mean everything.

Myself? I'm going the SoleProp route until I have enough of an income that I can comfortably afford the LLC fees. Of course, for liability purposes (at least with the notary end of things) I have a bond and E&O insurance. That was much more affordable than LLC fees at this point.

If you're a SoleProp, I highly suggest some form of professional liability insurance.

Do most or all VA's have professional liability insurance? Is it something that should be secured before opening for business or can it wait until some $$$ is made? Does anyone know the average annual cost?

Thanks!

Interesting subject. I never really thought about liability insurance as a solo entrepreneur as the extent of my services are basically with other fellow VAs or multi-VA firms.

Surely this would be a good idea to have in any working capacity in our VA businesses. I think I will research the matter and see what I come up with. Even a basic, affordable insurance coverage would be desirable.

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Delilah Smith
Caliber Virtual Services

I think I am leaning towards sole propietorship also.

I started my business as a sole proprietorship with the knowledge that I will eventually change to LLC. I am still a sole proprietor and I do have E&O insurance coverage.

You may want to look at this thread about the advantages of forming an LLC: What advantages are there to forming an LLC?

This thread is about E&O insurance
Errors & Omissions Insurance

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Darlene Victoria Gonzalez
The Voice & Vision Behind Your Business

I decided to start my business off as a sole proprieter. Once I get established I am looking to change to LLC. I just cannot afford the latter option right now.