business license

After consideration, I've been thinking about running under an offical license. For those that do not deem themselves hobbyists, self employed, or those that fly under the radar all together. What license are you filed under? Sole prop with or without a DBA title, LlC, s or c Corp, I have some experience with an s Corp that I tried to run, that is now dissolved. Any info / insight is helpful; as to the reasons what is the best / most appropriate. I know they all have their advantages and disadvantages .

Sole prop. Some swear by LLC but, if it's only you owning/running the business, LLC is really a waste of time. LLC is mainly to safeguard your assets in case of a lawsuit. But a good attorney could "pierce the veil" and hold you responsible, regardless. Lawsuits are what you have insurance for. You'll have that if you have an LLC, anyway. Just talk to your insurance agent regarding appropriate amounts of coverage.

llc and then a family llc to safeguard personal assets

I run unde an L.L.C and reccomend it for several reasons first of all taxation as a s corp if you buy a truck you by a truck if an l.l.c does the compnay did and it"S a higher tax write off if needed over a longer period of time a s corp can only show losses for 4 years and l.l.c 7 and finally.

say a brake rotor fell outta your truck and caused an accident as an s corp you hold the whole bag an l.l.c protects yuor family and assets better so they couldn"t sue family as well to recoup any losses or damages unless incorporated to the l.l.c i.e wife listed as partner

hope this helps my friend

please keep in mind that for the luxry of the veil of security l.l.c"s are insured at almost twice the rate of an s corp for the same policies

LLC is a limited liability company ( obviously ) what that is by definition is that if say you don't destruct a hard drive or bring on some damage to a company, where they feel that suing.you is the only way to go. The LLC protects your personal life. Home, vehicle and anything personal. Only the entitdees under the LLC can be suid for damages.
Quick point... say Walmart. There parking lot is Walmart parking lot LLC. The store you go into is say Walmart Boston LLC. Then there's Walmart Corporation. If you get hurt in the parking lot. You can only take Walmart parking lot to court as that is where you were and accident accured. Not saying lawyers would try to go for the big fish, but wont get far usually. Supermarkets are usually always set up this way up in the Northeast.

As a tax consultant I have set up many S-corps, LLCs and Sole Props. In working with lawyers they generally say that if you are the one doing the work and therefore responsible for any damage, you can be held personally liable. This is not legal advice, just my experience. If you have employees I recommend you look into an LLC or corporation for the liability protection. For tax purposes, the S-corp is generally better if you set it up correctly.

Thanks, guys/girls. In the past I did own and s-Corp. Saw the benefits and it was little pita as far as filing taxes every quarter. I do now have a partner. We initially want to start and run as a cleanout co. Not so much "junk removal" although it would tie in. By cleanout, I mean leaning more towards the commercial cleanouts of businesses. Eventually we would like to flip cars. Flipping cars under a license would require a dealer license. The sky us the limit as far as um concerned with which direction we could go. I thank you for your answers/ input. obviously with a partner there is a lot to consider.

We will consult a lawyer I just wanted to get a feel for what some other brothers are doing.

YOu may already have got your answer, but I also say LLC. It protects your personal assets. If you do not have any assets, then lawyers will not bother trying to cross the corporate veil. If you do have personal assets, then you make sure your LLC is running correctly, keeping everything seperate financial wise. Do not have a history of buying groceries with your company account kind of thing and etc. Two LLC's are good too when a lot of assets are involved. One is the holder of the assets (like trucks on the road, machines, business property, semi dangerous items as far as liabilities go). So, your home is your personal asset, business assets are held by an LLC, and business LLC is no real assets of value or the really high liability items. This allows you to pay rent to the holding LLC from the business LLC and you get money from the holding LLC being the Member. The holding LLC has the most $. The number one deterent to a $ hungry lawyer is no assets and no money. So, the business LLC makes money to pay its bills nothing left really to sue. This seems complicated, but just to defend your self you need an average of $5k to $100K retainer to be protected if you do get sued. A lot depends on the severity of the accident (which lawyers don't use by the way...they use negligent there are no accidents in their minds)