LLC or Sole Proprietor detailing business?

[hamsammich]

Ive been detailing on the side of my two other jobs. But now i want to put more time into detailing full-time. I just got a van and i also rent out space from my mechanic. I dont have a business license yet. I stuck trying to figure out which type of business would i need to choose to get started. I will be detailing by myself and maybe one or two other people to help if I get busy. LLC or Sole Proprietor? Can anyone guide me in the right direction? Thanks

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[WeekendDIY]

I would go LLC. It offers you more protection from lawsuits and such. I'm not a lawyer though, so you need to get the information yourself and decide what's best for you. You may want to get a consultation from an accountant and lawyer. There are plus and minuses both ways. But having the corporate vale in front of you and your family personally is the big one for me. My IT business (for 22 years...knock on wood) is a full Sub chapter S Corp.

[JeffM]

If you go llc you can take a paycheck and even get it done through paychecks , taxes taken out the whole deal. Then following your accountant's advice pay yourself a corporate distribution that is taxed much lower.

Sole prop you should sock away your quarterlies and pay them, in the winter the IRS is still going to want a payment.

[mwoolfso]

Sole prop and quarterly taxes may not be a bad thing because it enforces money management right off the get go. That said, some states will convert you to yearly if your revenue is not very high.

Overall, I would consider BOTH by speaking to an accountant. They can cover the basic questions and qualify you one way or the other based on tax policies in your state.

https://www.thebalance.com/sole-proprietorship-vs-llc-vs-corporation-1200858?utm_term=llc+vs+sole+proprietorship&utm_content=p1-main-1-title&utm_medium=sem&utm_source=google_s&utm_campaign=adid-6bdacd41-e590-4806-95c0-f9b27c81d090-0-ab_gsb_ocode-35387&ad=semD&an=google_s&am=broad&q=llc+vs+sole+proprietorship&o=35387&qsrc=999&l=sem&askid=6bdacd41-e590-4806-95c0-f9b27c81d090-0-ab_gsb

[Guyb]

I chose LLC due to the legal side and my state had favorable tax benefits for an LLC at the time. I then got my city business license. One thing I didn't learn until working with the local SBA was that your bank account needs to be a company account to keep it separated as part of the legality. They told me a personal account doesn't show a separation between personal and LLC.