Start Up Advice Needed Please

SteveInNCSteveInNC Posts: 1subscriber
edited April 2009 in Business Planning









Hello,
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

Comments

  • SteveInNCSteveInNC Posts: 1subscriber









    Craig,
    Appreciate the good and upbeat advise. Fortunately my wife
    is still in a solid job and like you suggested we’ve been hoarding for years, so all
    is not lost. Worse case I can mow lawns and do minor home repair ect. to boost the
    bottom line when necessary. There is just too many ways in this country to make
    money if you really try.
    I do have some contacts with needs for medical and
    research apparatus which is my particular area of experience, so things might
    expand from there. That is one reason I really feel the need for asset protection
    as I hope to be working with medical type mechanisms.
    I like your suggestion about SCORE and will definitely act on
    that. I had checked their web site for local help but got on to other problems,
    but will make a point to get in touch.
    I especially like the “being self-employed is like sailing
    on the water”. That is a cool thought to remember!
    Thanks!
    Steve
  • nevadasculnevadascul Posts: 3subscriber Member
    I`ve already contacted the SCORE rep in my area.  He had some ideas right off the top of his head that have promise.  We are going to meet later and go further with his suggestions.  I also think if you are going to try and fund equipment, look for a building separate from your back yard set up as well.  Many businesses that started in someone`s garage failed because the location was not conducive to attracting customers.  It comes back to the old saying, "Location is everything."
  • LisaMininniLisaMininni Posts: 0subscriber
    I wish I knew about this legal service when I started my business.  It allows you to ask a qualified attorney an unlimited amount of questions, like the ones you have, and tap into a network of attorneys throughout the US and Canada.  It is called PrePaid Legal and you can learn more about it at www.prepaidlegal.com/info/lamininni.  I`ve used them numerous times for questions and to review contracts, etc.  Hope it helps.
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