Business Entity

Just curious how everyone's entity is currently set up and has that entity transitioned over time? We're currently set up as a single owner LLC, but looking at a transition into an S Corp as early as next year. Has anyone been through this transition? Thoughts?

Most s corps are formed because there are multi investors and they want personal protection from debt or law suits. It would probably place you in a higher tax bracket. Now days most lending intuitions will want personal guaranties before lending to s corps. If you are soul owner single intrest LLC is probably best. That is something to best discuss with your accountant.

Any partnerships out there? How has that worked for you?

I was a solo LLC and switched to a corp. It was kind of a pain but not too bad. I did it because of the tax savings. you pay yourself a wage that you pay your tax bracket percentage. Then you only have to pay capital gains on the rest of your money. I would talk to an accountant. But if you are a LLC and in a partnership i think you can be treated as a s corp but not sure.

I am still set up as a sole prop but thinking of LLC.

I've always been a sole prop.. That worked out best for me?

People keep telling me I need to transfer my business to a LLC from a sole proprietor but I haven't found a benefit yet in switching except being shielded personally from being sued. So since I don't own anything except: 1 truck 1 6x10 trailer 2 3500 machines stencils Everything is 100% paid for so this is why I don't see any benefit in switching just yet, maybe in another year or two in the future.

Everyone in the forum can only give their personal opinions either from a protection from lawsuit standpoint or from personal experience of their success to this day. YOU, and only you must decide what steps your business shall take into the future. If you feel comfortable with things as they are as I felt for many years with my business then stay within your "comfort zone". Being incorporated these days do have some advantages with regards to taxes and liability protection in lawsuits should they arise, but then again as a sole prop., you do not have to be held accountable for every dollar that goes into the business bank account that a corporation does need to be held to? Again, the final decision is yours. If you don't feel ready to take another step up for whatever reason or you just need more time to think about it, then leave things as they are for a while and reconsider this step until you feel more confident in what to do. Not every business needs to be a corporation to succeed in business? It's how big your plans are for your business, both now and in the future that's important! Don't rush!

Linemaker, Thank you for the advice, I try to pick up pointers as I learn to run this business from people that are successful and I try to ignore the know it alls in my family

I'm glad to hear that I too, amongst the many here might have helped you in a small way! Incorporating is a big step into the future, but might not always the answer to every persons situation. My accountant said many years ago to try it for a year or two as a sole prop.. You can always change it if you like as your business expands. I am still thinking it over,Ha,ha,ha! I have always been a 1 man show since I started out. I've been in the striping/ asphalt industry now since 1976! I, am glad I had never incorporated till this very day. It gave me the freedom to use the company finances as I needed to then for new equipment, additional materials or even personal emergencies that can always occur. Good luck to you now and always!

Incorporating means more paperwork. I have enough paperwork now. (expletive) can't even take a dump without paperwork.

I would talk to your accountant who can explain it to you the pros and cons of each.He will know what will fit your needs specifically.

What Dan NJ said is probably a good idea. But if you do not have enough work to keep your self busy then get educated on doing your own books Quit paying someone else to do what is one of the most rewording parts of your business. . Some say an account can make you money. Sure in big business it can but in a small business like parking lot striping you should be able to handle anything that comes your way and not have to pay someone else out of your profit.

Dwan, Starting my 2nd year I am having a hard time finding a reasonable priced or even an available bookkeeper/ accountant or cpa to help me with my business taxes, I already have all my receipts, bank statements and invoices split up from January to December, I also kept great mileage records in a mileage journal but need help with putting it all together. I also need to figure out how it all combines with my personal income taxes since I have been running my business with my social security number being a sole proprietor, I now know this was a no no and for this year I now have a EIN I have done my own taxes in the past 20 years but this business stuff confuses me, maybe I am overthinking it but any advice would be helpful

CPA does mine and the wifes taxes and I stripe is lot. He Charges $400 and so do I

we use quickbooks to keep records, then end of year just email to cpa and he does the taxes. they don't charge much that way. ,

Since it was my first year I didn't invest in getting quickbooks and I wish I did

Try Turbo Tax Home and Business. It may be everything you need and is very user friendly.

Thanks for the info, I will check out that program

I use Quick Books and turbo tax. After learning QB and linking it with turbo tax it takes me between 4 and 6 hours to.do my own taxes every year. I am not saying it is the best way to.go but it works well for me. If I was just starting in business it is the way I would go and it should take less then an hour to do them if you keep QB up to date.