Question How do you operate legally (LLC, sole prop, partnership, etc.)?

[ASmithVAdmin]

I currently operate as a sole proprietor as well - maybe LLC in the future.

 

[Paulette]

I just filed my business certificate with the county yesterday as a sole proprietor. I dont remember the exact amount but filing an LLC in NY is a few hundred more $ so I went with a sole proprietor for now and in another year if business is going well I will consider an LLC.

 

[ancfun]

Re: How do you operate legally?

I run my business as a sole-proprietor right now but I would like to either incorporate or become a LLC as soon as posible to protect myself and family.

Same here. It's hard when you are trying to get everything "right" to know what's the best route for some things.

 

[wpanddesign]

I operate as an LLC which was recommended to me by a business advisor.

 

[moiraesfate]

My husband and I have applied for an LLC so we have some legal protection. We arent just going to be doing paperwork, and we will likely be dealing with account numbers and private information. Better safe than sorry.

 

[LeShanteH]

Hi Everyone,

I know this post is a little old, but I got hit with the question of whether or not I was licensed as a business, today as I was trying to set up an ad through the local newspaper. I am not licensed as a business, and wanted to know if anyone could give me some tips or help with the entire process. I can't PM yet, as I'm still a newbie, but you can either reply here or contact me through one of my other contact methods listed.

I appreciate any feedback.

Thanks everyone!

 

[lisacduffy]

Hi LeShanteH,

I know I'm not in your state, but for me, I look at my city's official website (I googled 'City of Vallejo') and they had information on obtaining a business license. Because I am a home based business, they basically wanted to know if I will have signs plastered in front of my house, commercial vehicles, customers in/out, etc.

Since no one would even know I owned a business except for my website, all I had to do was complete the online form, print it, then take it to City Hall and have the Planning, Zoning and Business departments sign the form, pay $40 and my business license was sent to me a week later.

I hope this helps. Good luck
Lisa

 

[LeShanteH]

It helps greatly! Thanks so much Lisa.

I did check out my city's official site and it is pretty much the same process, so as I continue to market and meet with my mentors/business advisors, I'll be filling out the paperwork too.

Thanks so much for your response! Good luck to you as well!

 

[JVResources]

I am starting out as sole-proprietor and hopefully will get a business license by next month.

 

[Tbassett]

I operate as a SP and if I can really grow this business then I will transition to an LLC.

 

[VBMPro]

Since I plan on filing for LLC (currently I operate as an SP), I can tell you that it's $200 to file in NY but then about $400 to run legal notice of formation in two newspapers for 6 weeks (publications are determined by the clerk's office...

 

[Monarch Virtual Assistance LLC]

I opted to register my business as an LLC but I believe I'm taxed as a sole proprietor. It's a few extra forms to complete at the end of the year and a few extra bucks but I was advised it's a good way to go.

 

[riki63]

I happened to marry a guy who already had an LLC so we just filed a dba.

 

[tracy]

I operate as an LLC. It is interesting to look at the poll and see the different ways other VA's set up their businesses.

 

[kaylagwilliams]

I set up LLC as a recommendation from an attorney VA. It was easy and relatively cheap.

 

[Virtual Lefty]

I also set up LLC. After 4+ years as SP, I finally made the leap and am thrilled with the decision.

 

[dburtaine]

I am also setting up as an LLC based on recommendations I have received.

 

[Exclusive25thhour]

I set up as a LLC per my accountant's advice. We discussed the differences between a SP and LLC and then he left the choice up to me. He then filed the paperwork for me for a small fee. It was very easy.

 

[Just Call Melody]

My business is set up as an S Corp. My husband and I had established the corporation years ago when he was working on his own as a computer programmer/consultant. We had kept the corporation current after he stopped working for himself. I only had to register my new business name and fill out paperwork using an Assumed Name for the established S Corp with the state of Michigan.

I see from the poll results that of the people who have participated I am definitely in the minority. I appreciate the security that the S Corp provides to me and my family.

 

[garycdewitt]

Great summary of how to lose LLC protection.

Also, some states require an annual tax/license fee for your LLC. They are typically minimal. I think here in Arkansas, it is $150 per year.

LLCs have the benefit of no annual shareholder meetings and no board of director meetings.

On the advice of my attorney, I will be forming a single member LLC. It's not that expensive (in my state it costs $100) and it provides almost 100% of the protection of the corporate veil. The only personal liability that I would have is:

1. If I were to make a personal quarantee on a loan;
2. If I did not pay my taxes;
3. If I committed negligent or intentional acts;
4. If I breach fiduciary duty; or
5. If I blur the boundaries between the LLC and myself.

In order to prevent losing the investment in my business, I will be taking out business insurance.