What type of business entity is best?
I am in the start up phase of a cleaning service and I am wondering what type of entity I should be. At this stage, I plan on doing most of the work. However, I want to remain focused on being an owner and not an operator.
1. get PlanMagic Business which offers you a cleaning business plan template and 5 year financial projections.
2. get S corporation. Can be in any state f.e. Nevada or Delaware and offers asset protection. Play it safe. F.e. incorporate.com offers package from $99.
Insurance. DBA at first, then based upon size of growth hopes you have options between:
Neither is of any real value until you grow, Insurance is all the way.
Kirt ... You have 4 basic entities: DBA, LLC, C corp and S corp. Each has it's pros and cons. As the others have stated it's best to discuss all the options with your accountant and attorney to get it right from the beginning.
I can say this. DBA affords you no legal protection of your personal assets. Whereas, LLC, C corp and S corp do. LLC and S corp are very similar from a taxation standpoint. All taxes are run through your personal filing. One of the cons that many don't like about C corp is double taxation. That means you pay both corporate and personal taxes.
I agree with Walter. You need to look at your accounting and what you want to achieve from your company both from a protective and financial view point. A business attorney and CPA are best to get advice on how to best setup your entity.
I agree with Josh. When I started Quality Systems Consulting I did it as a Sub-chapter S Corporation for closely held companies with one or two owners. and I did it for tax benefits. If you need assistance with any Quality Systems (ISO, AS) or need help with your training needs feel free to contact me at 773 606 6386
I recommend a Sub-chapter S Corporation for closely held companies with one or two owners. A corporation gives you some protection and separation from your company. Sub-chapter S Corp's also afford the owner certain tax benefits. If you would like more assistance please contact me at 515-661-3208
All depend upon your pocket ,check your pocket than according to that you can make decision which business is best for you
There is no best. Best is the one that fits your scenario. I recommend you talk with your business attorney and make that determination. Better to get it right from the beginning and understand all the ins and outs before you make a decision.