Forums: Discussions for entrepreneurs and small business.

Hi guys,

I should probably speak with a CPA about this, but I thought someone could help me in the SuN before I go to a CPA.

This seems to be a simple question. I have a website where I talk about wine. I want to start selling some wine accessories in order to generate some income.

I am thinking about setting up a simple sole-proprietorship so I can buy wholesale; do you think this is a good idea? It is going to be such a small operation that I don`t see a reason why set up a LLC (or any other legal entity for that matter).


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Andre Costa DaCosta Chocolates, LLC www.DaCostaChocolates.com

It is really up to you .. I think the article on this site, 10 steps to opening business, mentions the differences. FWIW, I`m a sole proprietor.

I agree. If someone accidentally killed somebody with one of your corkscrews, however, it would be nice to have your personal assets protected, which is what an LLC is designed to do.

But what are the chances of that happening? Next thing, somebody will be saying a space shuttle astronaut drove 900 miles wearing a diaper to kill someone she thought was a love interest to her not-even-boyfriend.

So much for hypotheticals...

BrandAlchemy,

I agree with you. I don`t think this type of business would require a LLC to be set up; but again, better check with people who know better.

I appreciate your comments. Thanks,

Andre


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Andre Costa DaCosta Chocolates, LLC www.DaCostaChocolates.com

I am not a CPA or a lawyer, but in my years in and out of business. I would aways set up a corporation. In your business you have land equipment, employees and your wine of course your greatest asset. One wrong move it`s all gone. In business like your sole owner is a law suit waiting to happen. I don`t know what state your are in but I would check with them. I have a website you might want to check out they have everything you want to know about incorporating your business. http://www.nchinc.com

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Best Regards, Howard Lee CIO Wirehead Technology Tel:773-944-1365 Email:wireheadtec@gmail.com Web: www.wireheadtec.com

Better source, in my opinion: www.Legalzoom.com 

My idea would be to start small and, if things work out, then I would surely create a LLC (or corporation, depending on my CPA`s suggestion).
The issue now is that the site is way too small, and I don`t have the money to invest in incorporating it at the moment.
Besides, I will not sell wine, but wine accessories. I may direct people to some wine stores, but that should not be an issue (I believe!).

I do understand the importance of incorporating and keeping your personal life safe and separate from your business life...but I struggle with the idea of spending the money (which I don`t have) now for something so tiny!


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Andre Costa DaCosta Chocolates, LLC www.DaCostaChocolates.com

I understand your point, but incorporation islike having insurance for your business. Yes it might be an expense now but down the line you will be glad you have it. I know from all to painful experience. 

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Best Regards, Howard Lee CIO Wirehead Technology Tel:773-944-1365 Email:wireheadtec@gmail.com Web: www.wireheadtec.com