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Old 11-29-2013, 06:11 PM
GreenI.A.'s Avatar
GreenI.A. GreenI.A. is offline
LawnSite Silver Member
Join Date: Jul 2010
Location: North East
Posts: 2,132
I went from LLC to S-corp. Every guy on here has a different reason for why they chose their business entity type. Take what advice you get here with a grain of salt. One guy is going to tell you that it won't matter, because in his person case it didn't. When another will swear you need to make the change because that's what his CPA told him. As someone who is about to finish a Master's in Accounting, the best advice I can give you is to talk to a CPA and go the particulars for you business and personal accounting.

One thing I will ask is how big is you business and how long has it been around? Have you begun to build credit under the company name yet? Do you have a duns#? Do you have trade references for credit yet? If so, are those references currently reporting to credit burrows or do they just do small in house credit?

The reason I ask this, even if your an s/c corp, you will more than likely be signing personal guarantees on loans until the company credit can fully stand on its own.
Why do people not respect us as they do other tradesmen? Because every Tom, Dick, and Harry doesn't think he can be a plumber or electrician!
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