Start Up Advice Needed Please
I’ve been reading many pages of questions and answers on
this site trying to collect information and so far am very impressed with some
of the good advice from all the knowledgeable members.
My full time job of 23 years is going to go away
soon in this downturn like so many other unfortunate people have already
experienced. But I plan to use this as an incentive (terrified of poverty) to
launch my home machine shop business into a full time endeavor here in NC. I`ve done part time work off and on as a sole proprietor.
Unfortunately funds are not great, and with only unemployment
income soon, so I can’t afford to experiment. I need to know as much as
possible before I hire a professional for assistance on what I can’t or
shouldn’t do on my own. Its very good stuff to learn for myself anyway.
I have a few questions I’m trying to iron out and I
hope some of you will be so kind as to lend an experienced opinion. Right now
my head is about to explode trying to figure this out!
1. As it stands now, I would be the only person involved. So
right now I am leaning toward a SMLLC, but I really need to separate my home
from the business liabilities. I know partners would help legitimacy but I
don’t have anyone yet.
Having read where a SNLLC is more vulnerable to being
disregarded in a lawsuit, maybe an S Corp is better? Or an LLC with S
Corp tax structure with the required paper trial so as to appear more like a "real business" to those who would
question the nature of the separation?
2. Big reason is I would like to use my own machine shop,
which is physically located in a separate building in the back yard of my home.
I feel this could be a bad problem if ever my SMLLC is challenged as far as the
alter ego claim thing.
Would it be wise to lease the building and equipment
to the LLC to cause a separation from my “personal self” to more legitimize the
LLC? Would this be enough severance? What’s the best way to do this?
3. I want to keep my wife separate form the business because
of the “Tenancy by the Entirety” allowed in NC. Does this really work?
4.Should I use an attorney or CPA for drawing this up? How
about LLC forming software?
Sorry for the long post, I know this is a lot to be asking.
Any help would be greatly appreciated. Thank you all who answer for
your time and patients in advance!
(my head is starting to tick again)
Steve in NC
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