What type of entity is best for me?

rockdoctorrockdoctor Posts: 2subscriber
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 Posts: 5subscriber 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 Posts: 2subscriber
    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 Posts: 0subscriber
    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.
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