OHIO: LLC, Corporation or Sole Proprietorship?

[RickL1700]

Grass Scapes: I chose a LLC because of some other small business men and women who I spoke with as well as my wife's aunt, who is a attorney. I guess it is just less complicated to form a LLC as to a S-Corp. with a S-Corp you have to have shareholders and meetings and such and even if you do it like you stated it still just seems easier and simple to be a LLC. All i want it to be legal and insured and not get all my personal en devours taken because of something that happened as a result of a business accident. So I decided to start off as an L.L.C and get $1Mill GLI to keep the Sue happy ppl who see me driving around some equipment and a truck that has a Lawn Care sign on it from taking everything I own. Thanks to everyone for being so helpful and nice.

[mkarps]

Very informative posts everyone. Thanks!

[OUTLANDER]

Originally Posted by DA Quality Lawn & YS

Having recently read a book on biz structures, the S Corp does not hold many advantages over the LLC at all. Perhaps savings on self employment taxes, but you sting your own butt when you go to collect your soc sec at retirement (if there is any left??). Advantage LLC here.

Now if you are solo with a few accounts, don't anticipate debts to be any sort of a problem, then sole prop is just fine. Just get a nice big fat limit of GL coverage and should be ok. When you start bringing on employees, getting a broader reach, taking on biz debt then move to LLC.

(Note, an LLC does not exempt you from self employment taxes whatsoever. There is NO tax advantage to a single member LLC vs. a sole prop.

Good postthis is the info you should be considering i would say, considering starting small as this