Forums: Discussions for entrepreneurs and small business.

Hello, I am going to be starting a consulting business helping local businesses market their products and services in Orlando Florida. I wanted to know if I can just start a business and choose later whether to make it an LLC or s-corp; basically, I want to be able to get my business registered for as cheap as possible right now... cant I just get an occupational license or something like that?

I checked the state web site and there is little, if any info about starting a consulting business which I would think wouldnt need hardly as many licenses permits etc. as a plumbing service or the other type of businesses it talks about on the state site...

Basically, i am trying to find out What is the simplest, most inexpensive way to get an official business name? Do i need anything in particular (licenses, permits etc.) to offer my advice to businesses as a consultant?

thanks in advance for any assistance

 

 

-------------------------

You can start as a sole-proprietorship as opposed to a LLC or s-corp.  Just know that you will be your business so if your business gets sued, so will you (meaning your personal assets are at risk).

 

Just make sure you have great insurance (something you will need regardless if you form a LLC or keep it a sole-proprietorship).

 

I do recommend that you spend the money now and do the LLC. In the grand scheme of things, the long-term benefits far outweigh the short-term costs.  Plus, if you do it yourself (which is really easy) you can save money there.

-------------------------

Business Money Today
Small Business Loans & Start Up Loans

Here's a good article about the benefits of LLCs vs. S-Corps:

Benefits of LLCs as compared to S Corps

* LLCs are easy to set up and less expensive to start in most states
* There are less rules and restrictions compared to an S-Corp, which may save you on attorney and accounting fees
* An LLC is not required to hold meetings, keep formal minutes or record resolutions. A Corporation is required to do so, which can prove to be cumbersome
* LLCs can distribute profits as they see fit, where an S-Corporation’s profits must be distributed according to the ratio of stock ownership
* LLCs can be member managed, where an S-Corp must be managed by a board of officers

Benefits of S Corps as compared to LLCs

* You may pay yourself a reasonable salary, plus take distributions at a lower tax rate
* You can raise money from the public in the form of corporate stock certificates, if you later choose to revert to an C-Corp and become publicly traded
* The independent life of the Corporation is not dependent on the incapacity or death of a stockholder, as it is with an LLC in some states
* With S-Corps only the salary paid to the employee-owner is subject to employment tax, where with LLCs, the entire net income of a business is subject to self-employment tax
* Depending on the Corporation’s business record, you may enjoy more access to money from lenders

Hope this helps!

-------------------------

Becky CK Direct Incorporation http://directincorporation.com

From personal experience, I would say just start with an S corp because of the tax benefits. I too am in Florida and started with an LLC, which once I got a full time accountant I had to change to an S corp.

 

Just be sure to always keep corp money and personal money separate, otherwise you will have a tax mess on your hands, trust me :)

-------------------------

Small Business Tutorials

Easiest and most cost effective way is to be a sole proprietor. This means you report any income or loss from your business on your personal income tax return (Form 1040) using another form called Schedule C.

Your business income is considered personal income for tax liability purposes, and will be taxed at appropriate rate. Usually you will show a loss your first year or longer, which can actually reduce your taxable income.

Check with a good accountant/CPA who can help with Florida specific issues. The most important thing to do is establish good record keeping/accounting practices from day one, keeping your personal finances separate from your business finances.

This will require separate bank accounts for each. It can be as simple as opening a free checking account in your name that you use only for business. Same goes for credit or debit cards.

LLC and Corporate structures require more documentation and tax reporting. Unless you can afford to pay others, or you are good at accounting and tax returns, I wouldn't start there. There is no need until profits from your business start increasing your tax liabilities.

When the time is right, S-Corp offers more advantages to lower self-employment taxes. These are usually the largest tax liabilities for small companies. 

-------------------------

http://www.christian-business-opportunities.org

I would start with some form of entity - llc, s corp, etc.  Otherwise you are "all in" with your business, there is no separation or protection it is just you.  If anything were to happen and the business is sued, as a sole proprietor all liability falls in your lap.

 

Hope this helps!

John

-------------------------

Online Work Schedule Program | HeresYourSchedule.com Cloud scheduling simplified!