is it advisable to make my small business an limited liability corp?

Answer 1

One issue you might want to look at is firstly what will your tax year be like? If you are planning on having a Jan-Dec tax year, start this year as a sole proprietor, and organize yourself officially Jan 2 of next year. That way, you won't have to deal with a full year of tax issues as an LLC. (In a state like NJ, that could mean a BIG savings!)

As for the actual way to organize, that is a very big question, with not a lot of information being provided... If you are trying to bullet-proof/protect your assets, an LLC or a "C" Corp would do (not an "S" Corp though). If you are trying to minimize taxes, it depends on what your personal income level is - If your personal income (yours and your spouses, if filing jointly), is high, a Corp would be better. If your personal income (yours and your spouses, if filing jointly), is low, an LLC might be a better way to proceed.

End of day, only a qualified accountant can really answer your question, with all of the information at-hand...

I hope I helped you a little bit though!

Good luck,
J

Answer 2

It may be advisable to make it a limited liability corp. A lot of that depends on how much risk is involved with the business. If you are in danger of getting sued alot, you may think about it.

If you don't have a lot of start up funding you may want to think about starting a sole proprietorship and switching at a time when you are established. This saves some money in the start up phase of your business.

Answer 3

You need to get professional help or look up all the info and tax implications of LLC's. There's quite a difference between being a sole proprietor and what you are considering.