if i start an ';on-location'; business can i incoporate or form a llc? I would like answers to both parts of my question. Thank you. (please dont answer just for points)I want to start a beauty salon, should i incorporate or form a llc?
First of all, never run any legitimate business as a sole proprietor. You should consult an accountant or reputable attorney for the tax and legal benefits of each (LLC vs. traditional corp). Here is a site I have used to incorporate a couple of my businesses in the past:
www.incorporate.com.
You fill find a lot of valuable information there. The company has been in business forever and I have been satisfied with their services. Also, once you have your business set up, get business insurance.I want to start a beauty salon, should i incorporate or form a llc?
I would probably go with putting it on a schedule C as a sole proprietor. You will pay more to your taxpreparer to have an extra entity by having to file an 1120 every year. I don't think you will really be limited on your liability for personal injuries you do yourself with a corporation.
What's wrong with a sole proprietorship? Incorporation will cost you for the legal work and you may pay more tax. Frankly, I have never heard of a IIc.
I think you need to bone up on exact what a corporation means and what a Limited Liability Corporation means. Once you've done that you may find that it is better for you to consider a limiting your liability. Tax wise, the effect will be the same. It is your insurance premiums and law suits that you will need to worry about. Just remember that in the USA, we live in a litigious society.
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