WE'VE MOVED!

We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co

What type of entity is best for me?

rockdoctorrockdoctor subscriber Posts: 2
edited April 2008 in Business Planning
I am planning to start up a company while continuing to work full-time.  The reasons for starting up are:
1) To establish a business history for future credit
2) To build revenue that may be used for capital as the ulitmate plan for the business will require a relatively large capital investment.
 
I foresee this company operating for two to three years with minimal revenue, certainly less than could accomodate a reasonable salary for myself.  I would be the only employee while the business is operating in "broke-mode".  At some point, I would hope to quit my current job and quickly turn the business into a profitable venture with a handful of employees.  As I perform a very specialized technical service with little competition, it will be easy for me to gauge when that profitable point occurs.  I`m trying to figure out whether an S-Corp or LLC is the right way to go considering how I foresee this enterprise evovling.  Does anyone have any advice on this matter?

Comments

  • KevDevKevDev subscriber Posts: 5 Member
    As Winston2 suggests, a professional`s opinion is a good idea.
    FWIW, you could easily start as an LLC (low startup costs, little paperwork, simple taxes), and when your situation changes, convert to an S-Corp, which is a somewhat more expensive and complicated entity.
    Good luck!
  • babyjoy214babyjoy214 subscriber Posts: 2
    Hi!
    i found this site that would really help you, Its about LLC vs. S Corp: Which Structure is right for your Business.. here hope it helps!!
    goodluck!
  • adam0001adam0001 subscriber Posts: 0
    Rockdoctor,
     
    Check out http://www.centerpointcorporate.com/   They do business formations in Nevada.  I`m not sure where you`re from but Nevada`s a really good state to form in because the annual requirements and things like that are pretty inexpensive.  Give them a call or an email and they can help you out with which is better an LLC or Corp.  I formed an S-corp through them in Nevada even though I live in California because it`s much cheaper.
Sign In or Register to comment.