Consulting/LLC or Corp Experience

[Silhanek, Virgil]

Try this site for an Arizona Small Business Development Center.  

http://www.dist.maricopa.edu/sbdc/index.htm

Most services they offer are free or at a very small cost.  I've been to
some really good seminars that they give and only charged $10.  They can
help with business plans, getting bank loans, sole proprietorships, small
corporations, and any questions a new or existing small business owner has.

When you start a business, you will most likely declare yourself a sole
proprietorship or corporation.  The best option is to start as a corporation
because this is declared a separate entity than yourself and can still be
run as a small business with you as the only employee.  By being a
corporation, any legal action would go against your business and not be able
to come after you.  As others have mentioned there is also the option of
beginning a S-Corp.  This is somewhat a combination of the two.  You get a
separate entity of a corporation, but it has a tax structure more like a
sole proprietorship which means you don't have to pay as much taxes.  To set
up a corporation, it does cost anywhere from $200-500 in initial lawyer fees
to draw up bylaws of your business and name it.  That investment is well
worth it in the long run.

Like I said, talk to someone at a SBDC and they can fully answer any
questions you have.

Virgil Silhanek
www.silhanek.com
virgil@silhanek.com


-----Original Message-----
From: Carl Parrish [mailto:cparrish@cox.net]
Sent: Monday, April 22, 2002 9:19 AM
To: Plug-discuss
Subject: RE: Consulting/LLC or Corp Experience


I'm set up as an S-Corporation. it has its advantages but if you would
be the sole stock holder and you would be the only employee I can't
think of a reason you would choose S-corp over LLC. Its both a *lot*
more papper work and more expensive to set up an S-corp. Oh the other
reason NOT to choose LLC is if you expect to do out of state work. 

Carl P. 

On Mon, 2002-04-22 at 03:01, John Albee wrote:
> Austin,
> 
> Do you want to expand your business to include more consultants besides
> yourself?  If so, I would suggest setting up a S-Corporation.  I won't go
> into what it is because a google search or a quick look thru nolo.com
should
> shed some light on what it is.  With a Corp. you are required to file
> quarterly with Uncle Sam which is not difficult if your using quickbooks
or
> an equivalant.  A S-corp can have tax avantages if done properly.  Also,
an
> S-Corp creates a seperate legal entity for your business transactions
which
> is helpful in legal situations.  The only additional overhead I can think
of
> at the moment is the quarterly taxes and the annual corporate "meeting"(if
> your the sole stock holder, its only a paper formality) which is required
by
> the corp. Commission if I remember right.  Regardless of which type of
> business setup you choose, you should talk to a lawyer and an accountant
for
> more information.
> 
> --
> John Albee
> Active Computing, Inc.
> voice: (602)448-4528
> fax: (800) 852-3735
> john@aciaz.com
> 
> 
> 
> -----Original Message-----
> From: plug-discuss-admin@lists.plug.phoenix.az.us
> [mailto:plug-discuss-admin@lists.plug.phoenix.az.us]On Behalf Of Austin
> Godber
> Sent: Monday, April 22, 2002 1:25 AM
> To: PLUG Discuss
> Subject: Consulting/LLC or Corp Experience
> 
> 
> Hello,
> 	I was wondering whether anyone on the list has had experience with
> doing independant contracting and using a LLC or some form of
> corporation rather than just doing it as an individual.  Are there
> advantages?  What additional overhead and expenses?  Insurance issues,
> both personal health insurance and job related?
> 
> 
> Thanks,
> Austin
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