I am planning on opening a small business, is it the smartest thing to incorporate? My lawyer said that it will protect my personal assets. What are my other options?
2007-11-13 16:32:18 · 5 answers · asked by A F 1 in Business & Finance ➔ Small Business
Your options are sole proprietorship with appropriate insurance coverage. Or corp or LLC.
If partners are involved, then only corp or LLC is prudent.
In all cases, you need a business lawyer and accountant's involvement.
To choose between an LLC and corp., consult your lawyer and accountant (and not anyone here).
Pros of corp/LLC are asset protection, continuity of existence, structured management, more professional appearance to public/customers, potential tax benefits.
Cons are cost to set up and maintain.
2007-11-13 17:37:28 · answer #1 · answered by heart_and_troll 5 · 0⤊ 1⤋
Well you could be a sole proprietor, if you screw up and someone sues you they can take your house, car, boats, motorcycles, furniture, etc.
You could be a in a partnership and have all of the worries above plus whatever a bad partner might throw at you.
2007-11-13 16:36:49 · answer #2 · answered by don_sv_az 7 · 1⤊ 1⤋
LLC - Limited Liability Company
CONS of a "corporation" is you need board members, elections, reporting, etc.
2007-11-13 16:35:03 · answer #3 · answered by LD 4 · 0⤊ 1⤋
do what the heartless lawyer says :)P
2007-11-13 16:35:27 · answer #4 · answered by Anonymous · 1⤊ 1⤋
agreed w/ 1st post
2007-11-13 16:35:42 · answer #5 · answered by John Bob Bryant III 2 · 0⤊ 1⤋