My friend and I are joining forces and creating a business. We originally were thinking we would go non-profit, 501 (C)(3), and then changed it to for profit. However, now we are wondering if we should go the LLC route. There is just the two of us. We want to create an entity to protect our personal assets. At the same time, we are creating a completely separate LLC to purchase and manage a piece of property, that will be leased to various individuals, including my friend and I (renting rooms to lie in) other people renting rooms, and the aforementioned business renting space to work out of. Is LLC or inc the best route to go for the business? The business is life-coaching- with empowerment camps, cooking courses.... basically anything you need to become the change you wish to see. LLC? Inc?
Honestly, I'll give you my opinion, but you should seek the advice of a business attorney and tax attorney as they can properly guide you in the right direction. If you're looking for personal liability protection and it will just be you two then a LLC that is used strictly as a pass through entity is suitable.
Yeah, I agree with premierwebstrategies, you should seek out for a professional help. Here are some of my thoughts, keep in mind I`m not a CPA, so everything I`m saying to you should just be a generalized idea in the back of your mind. Technical List: Legal Zoom, they do monthly payments if the filing is too much for you. LLC (Limited Liability Corp) is recommended because you do get to protect your personal vs business Suggestions: 1) I would have a checklist of things to filter out whos the right CPA for you. Example: (Ask questions of concerns that needs to be addressed during the interview while they get to know your business) 2) The ideal cost of a CPA ranges from $100-300 depending on the level of services, so ask for a exact quote. 3) Hire a book keeper to manage your deductions & itemize when it comes to tax time. (If you are paying quartly, or monthly is up to you, this discussion can be again addressed to a CPA.) Hope this helps!
based on what you said LLC probably best for you. inc usually involves lot of book keeping, meetings etc. llc is lot more flexible. also with llc you can pass on the tax issues to individuals. makes the tax time lot simpler.