LLC or Sole Proprietorship

LLC

 

Being an LLC allows you to have different options for partnering and having associates and "signers". Gotta set up your business account sometime, and many banks love to inform you of the differences between the two (Sole Prop and LLC (S and C))

 

Seems like you're doing okay now, what do you expect to gain from starting a business?

As of right now, even without a business you can still claim deductions on whatever income you claim. If you're not getting a 1099, then the gov has no idea what you're making.

 

Main issue is I have accumulated a sizeable savings and my next investment will be purchasing my first home, and in order to do so, I will need to have a legitimate business to show where the income has come from.

Plus, it just doesn't feel right living here and not paying any taxes, will be nice to have everything on the up and up.

Thanks, definitely going with an LLC. Submission for state business license will be this week, then city, then I get to wait to apply for the DMV licensing after I am approved for those two.



Kind of bummed the process is such a time waster, as that puts my home loan approval out further, and our housing market here is a nightmare right now and only getting worse.

Also seems to be alot of ambiguity for home based businesses so fingers crossed everything goes smoothly.

 

an llc will protect you in case of a lawsuit. anyone wanting to sue the company for whatever reason, would not be able to go after your personal assets, just the businesses. id recommend speaking with a business accountant and taking your written/detailed business plan to them.