what type of business are you.

emeraldrose

I have yet to get my business license due to the fact i need to know what model of business i want to have. I would like to do llc as in college that's what our photo biz class suggested as a way to keep personal from company so if someone sued you, they could only touch your business stuff not your personal. But to do that requires a lawyer from what i understand and I can't really afford one right now. so my question what type of business do you have and why? If you have anything besides sole-prop how did you do it? thanks just trying to get all my ducks in a row:deal

ChatKat

emeraldrose wrote:

I would like to do llc as in college that's what our photo biz class suggested

An LLC is not right for everyone. Each business needs to take into account many factors to determine which entity is right for them. An LLC files taxes on your personal return any way - no different than a sole proprietor actually and in California you'd have to file a Minimum Franchise Tax to be an LLC of $800 a year. About $1000 to have a lawyer set it up. Plus a set of books.

The right person to help you determine which entity is right - Sole Proprietor, LLC, LLP, Sub Chapter S or C Corp would be your CPA. They can look at the whole picture and crunch some numbers to tell you which is most effective for your bottom line and what makes the most cents and sense.

FedererPhoto

1) I went with a sole prop LLC.

2) you don't need to know your business designation before you get business cards. Who puts that on their card anyway? Mine don't say "Federer Photography, LLC" ... and I would snicker at someone's who did.

emeraldrose

FedererPhoto wrote:

1) I went with a sole prop LLC.

2) you don't need to know your business designation before you get business cards. Who puts that on their card anyway? Mine don't say "Federer Photography, LLC" ... and I would snicker at someone's who did.

I don't need it for my cards, but for my biz license I have another small side business and I know they ask you what type of business you're applying under so I need to figure it out first. if you're a sole prop llc how did you go about setting that up?

ChatKat

FedererPhoto wrote:

1) I went with a sole prop LLC.

2) you don't need to know your business designation before you get business cards. Who puts that on their card anyway? Mine don't say "Federer Photography, LLC" ... and I would snicker at someone's who did.

By law in California you are required to let people know that your are a Corporation or LLC ....Also, the term Sole Proprietor would not be the correct way to address an LLC. It is a "Sole Member".

FedererPhoto

ChatKat wrote:

By law in California you are required to let people know that your are a Corporation or LLC

So every company in CA (I've never been) has LLC or Corp on their signs right after their names? I didn't know that.

....Also, the term Sole Proprietor would not be the correct way to address an LLC. It is a "Sole Member".

You are correct, miss-thought.

ChatKat

Federer, I was just wanting to educate those who don't know. Please don't take it as any affront to you personally. I do a lot of business education to new businesses.

emeraldrose

ChatKat wrote:

Federer, I was just wanting to educate those who don't know. Please don't take it as any affront to you personally. I do a lot of business education to new businesses.

thank you you should start your own sticky 1 i should of paid more attention in college and 2 it's been over 2 years since i learned all this and so i've forgotten most of it. thanks for all the help to get that llc do you have to get a lawyer and can i start out as a sole prop and later go llc?

wadesworld

thanks for all the help to get that llc do you have to get a lawyer and can i start out as a sole prop and later go llc?

You don't have to have a lawyer to setup an LLC - there are websites and corporations which will help you do the paperwork. However, I would advise you to use a lawyer. The important thing is to get it right.

You certainly can start as a sole proprietorship and then switch to an LLC. However, just be aware of the advantages/disadvantages of each model. For example, if someone were to sue you over work done as a sole proprietor, you can't quickly file paperwork for an LLC and say, "You can't touch my assets - I'm an LLC." Work done as a sole proprietor will be treated as such.

emeraldrose

wadesworld wrote:

You don't have to have a lawyer to setup an LLC - there are websites and corporations which will help you do the paperwork. However, I would advise you to use a lawyer. The important thing is to get it right.

You certainly can start as a sole proprietorship and then switch to an LLC. However, just be aware of the advantages/disadvantages of each model. For example, if someone were to sue you over work done as a sole proprietor, you can't quickly file paperwork for an LLC and say, "You can't touch my assets - I'm an LLC." Work done as a sole proprietor will be treated as such.

Thanks. As I don't really have many assets right now i think i'll prob go sole prop right now.

squiddy

Hey Chat, I started my LLC here in Colorado but I'm thinking I'll be living in California in the next couple years....

Does that rule still apply - the $800/year plus lawyer, etc ?

I don't have a CPA, i have barely made any money. I was under the impression [outside CA] that in order to file you'd have to make over $600/year. Is that right?

emeraldrose

squiddy wrote:

Hey Chat, I started my LLC here in Colorado but I'm thinking I'll be living in California in the next couple years....

Does that rule still apply - the $800/year plus lawyer, etc ?

I don't have a CPA, i have barely made any money. I was under the impression [outside CA] that in order to file you'd have to make over $600/year. Is that right?

now there's a good question since I'm just starting as a business I haven't made that yet, still figuring how to get my name outside of my small group of friends.

FedererPhoto

ChatKat wrote:

Federer, I was just wanting to educate those who don't know. Please don't take it as any affront to you personally. I do a lot of business education to new businesses.

No, I didn't at all. I miss-thought/typed my original. Keep the good info flowing.