As a one man show with no intention of employees I’m still just a sole proprietorship. What are the benefits of creating an LLC? I’m debating doing that this year
Liability is a big one.
If a customer tries to sue you, he can’t go for your personal assets. If you get a loan for a car etc through your company then it won’t show on your personal credit report.
I think most accountants say it’s not worth it to incorporate until you make more than what you need to survive since the paperwork is killer and expenses for running the corp are high. If you’re planing to live on whatever you make cleaning windows then it may be difficult
I just talked to our accountant about this last night as I’m about to become official. LLC was the direction she recommend starting out. It’s simply a matter of the tax form you’re going to file when the time comes. If/when you grow you can simply switch over to an s-corp which has Al sorts of tax breaks but just starting off llc is the way to go for most.
In Illinois it’s $150 filing fee and a few weeks to register a name l, nothing to get a business ID #. I will be sitting down with her soon to go over this more so I have a better understanding.
I’m starting slow so I may make a couple grand or I may roll in it. I don’t need to go fill steam and I’m not advertising so I just need to make enough to cover supplies and cost associated with filing and insurance.
I was told by my accountant there was one where you really have to have your stuff together. For example I am not the best with books so she told me if I became an llc I have to file more and have more communication with the government and if your not timely and on top of your stuff this can be bad.
If you’re a one man band, stick with SP. I became an LLC a couple years ago and let’s just say the complexity alone would make me think twice if I had to do it again. CPA is mandatory.
Oh and don’t think they can’t sue you for personal property with an LLC, it’s just tougher to do.