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View Full Version : sole Proprietorship, LCC or S-Corp


jwc1031
09-27-2003, 01:04 PM
Does anyone have advise on what the best type of business to claim is??? I have heard alot of pros and cons on all three!!

John Gamba
09-27-2003, 02:02 PM
LLC,but as a lawyer.
John

Green in Idaho
09-27-2003, 08:30 PM
I am sure Texas does not allow a single member LLC

So IF you are the only owner, your options just dropped to two:
S-corp or sole prop. With that, S-corp is the easy answer.

IF you have other partners LLC may be attractive. But since partners is usually NOT attractive, I would lean to S-corp for a one person business in Texas.

It is not a matter of type 'to claim' it is a matter what form to establish. This is something BEFORE the fact, before conducting business.

If you still are questioning which one, offer more information for everyone to help...:)

I am Me
09-29-2003, 11:46 AM
Tx does allow an LLC for a single person.

However, my question is the protection factor of the LLC against such things as law suits. It seems that the LLC is easily penetrated to allow the person to go after or attach personal property or assets. Green is this true?

bruces
09-29-2003, 12:10 PM
Originally posted by I am Me
Tx does allow an LLC for a single person.

However, my question is the protection factor of the LLC against such things as law suits. It seems that the LLC is easily penetrated to allow the person to go after or attach personal property or assets. Green is this true?

Legal question - if you want legal advice, ask an attorney for reliable information.

In my opinion, the LLC offers pretty good liability protection, but again, spend some money with a local attorney if you are concerned.

Green in Idaho
09-29-2003, 01:18 PM
Originally posted by I am Me
Tx does allow an LLC for a single person.

However, my question is the protection factor of the LLC against such things as law suits. It seems that the LLC is easily penetrated to allow the person to go after or attach personal property or assets. Green is this true?

I stand corrected on the Texas single-member LLC. (A reference cited TX and 21 other states offer it). So now you are back to three.:dizzy:

I ditto Bruces words.

The actual answer is SO state specific that one has to consult with an attorney in the respective state. AND one familiar with business law. Ask 3 different lawyers that question and you may get 3 different answers. That's why they have insurance.


LLC are so new that many of these issues have not been 'tested' yet. While state law may intend for the 'protection' the law will always be tested and only until some case law documents the issue one way or another followed by more detailed legislative action will people know absolutely where they stand with LLCs. That is one reason why attorneys often advise going with an S-Corp. There is more S-corp case law and such questions are more easily answered.

Jimbo
09-29-2003, 09:32 PM
The reason I formed an LLC corporation was to protect my personal assets, and the name implies the same thing- go figure.