When to change business to LLC

photodad1photodad1 Registered Users Posts: 566 Major grins
edited July 10, 2012 in Mind Your Own Business
I started a new photography business back last year as a Sole Owner/Proprietor and have been looking to switch my business to an LLC to protect my personal property. After doing some research I found there are fees to setup an LLC and you must also file a report every year which also costs money depending what state you are in. At what point does it make sense to convert from a Sole Owner/Proprietor to an LLC?

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  • HelvegrHelvegr Registered Users Posts: 246 Major grins
    edited July 10, 2012
    photodad1 wrote: »
    I started a new photography business back last year as a Sole Owner/Proprietor and have been looking to switch my business to an LLC to protect my personal property. After doing some research I found there are fees to setup an LLC and you must also file a report every year which also costs money depending what state you are in. At what point does it make sense to convert from a Sole Owner/Proprietor to an LLC?

    From my own experience (not photography related), it makes sense as long as you get an accountant and a lawyer to keep things working for you. I made the mistake of going the route of the DIY LLC. I will never do that again. If I go LLC for anything in the future, I'm going to have professionals handle everything, especially taxes!
    Camera: Nikon D4
    Lenses: Nikon 70-200 f/2.8 VR II | Nikon 24-70 f/2.8 | Nikon 50mm f/1.4
    Lighting: SB-910 | SU-800
  • Cygnus StudiosCygnus Studios Registered Users Posts: 2,294 Major grins
    edited July 10, 2012
    photodad1 wrote: »
    At what point does it make sense to convert from a Sole Owner/Proprietor to an LLC?

    The best answer is when you're accountant tells you it is time to change your company. What may make sense for one business isn't always going to make sense for another. The accountant will suggest what works best for you.
    Steve

    Website
  • AngeloAngelo Super Moderators Posts: 8,937 moderator
    edited July 10, 2012
    this topic was discussed recently in THIS THREAD

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    www.angelo.smugmug.com

    Moderator of: Location, Location, Location , Mind Your Own Business & Other Cool Shots
  • photodad1photodad1 Registered Users Posts: 566 Major grins
    edited July 10, 2012
    Angelo wrote: »
    this topic was discussed recently in THIS THREAD

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    Thanks! Great information.
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