I have a couple questions on running your own business. As I understand it, I would be filling form 1040 Schedule C(Even as a single member LLC). I have read various opinion columns on LLC vs SP. I’ve reviewed the LLC forms, they are pretty straight forward. Having no strong foundation in business, I have not idea if these asshats are correct. Does anyone have opinions on a SP VS an LLC?
I have a primary source of income. I have already incurred about 2400$ in start up costs. There is a possibility I may make next to nothing this year. There is also the possibly I will make about 50K if some of the work comes through.
Does either structure favor vehicle right offs? I may need to purchase another truck for work purposes. Everyone I know personally running this business model tries to write off as much as possible to balance out income. Is this the norm?
Any recommendations for knowledgeable resources would be much appreciated.
One of my professors told me that if you ever start a business no matter how large or small you should hire two people. A lawyer and an accountant.
I’d be careful taking advise off of forums. Often times you get people that read or heard the advice they are giving without actually having experience in the topic (I suppose if I’m honest I’d have to include myself). I could write a paragraph or two about the difference between a SP and LLC, but really you should talk with someone, like an accountant, that specializes in small business. That way you are taking the proper deductions and probably more importantly not taking deductions you shouldn’t for example.
One thing to consider, and I realize I’m giving advise that I already said you shouldn’t listen to, is that if I’m not mistaken you can only carry a loss forward for so many years before it become a hobby loss. I believe it’s 3 years. That and the liability you have for debt, lawsuit, etc… when forming an SP vs LLC is enough to reach out to a professional.
Just my two cents.
Chris
[quote]Captnoblivious wrote:
Does anyone have opinions on a SP VS an LLC? [/quote]
Liability is your biggest concern at this point.
The formation of the business will be more and more relevant the more of it you have.
Welcome to owning your own business. Enjoy sleepless nights. 
Should be the same either way, assuming you follow the rules.
Good lord yes, lol. Just don’t get sucked into spending $100 to save $25 in tax.
[quote]Any recommendations for knowledgeable resources would be much appreciated.
[/quote]
Hire a CPA to do your returns, and maybe talk over your plan and the the above questions in person.
Not HR Block. A local CPA will be fine. Look for gray hair and files hanging around.
[quote]countingbeans wrote:
[quote]Captnoblivious wrote:
Does anyone have opinions on a SP VS an LLC? [/quote]
Liability is your biggest concern at this point.
The formation of the business will be more and more relevant the more of it you have.
Welcome to owning your own business. Enjoy sleepless nights.
Should be the same either way, assuming you follow the rules.
Good lord yes, lol. Just don’t get sucked into spending $100 to save $25 in tax.
[quote]Any recommendations for knowledgeable resources would be much appreciated.
[/quote]
Hire a CPA to do your returns, and maybe talk over your plan and the the above questions in person.
Not HR Block. A local CPA will be fine. Look for gray hair and files hanging around.[/quote]
Thanks for the input. I’ve known a greyhaired CPA for years! He is the cheapest sonofabitch I know! Probably worth a couple million, drives a piece of shit 80’s model Nissan with body damage! ha!
My wife and I just went through this last spring with her business. For US, it was best to keep her as the Sole Proprietor. We talked to people with similar business who had gone each direction, and we talked a lot with our tax guy. He was by far the most helpful, so definitely visit a professional.
[quote]Captnoblivious wrote:
Thanks for the input. I’ve known a greyhaired CPA for years! He is the cheapest sonofabitch I know! Probably worth a couple million, drives a piece of shit 80’s model Nissan with body damage! ha![/quote]
That is the type of person you are looking for.
Remember: garbage in, garbage out. Bring him details and he can help you more than if you don’t.