What business structure are you?

For my day job company we're a straight C corporation, registered in the same state where we live and work. We spent a lot of money with our lawyer to set things up correctly given we're hoping to be a software growth company and be acquired at some point. We spent about 8,000US total on all the legal work.

For my writing and limited IM activity I'm just a sole proprietor. I and my accountant did not think the time/expense of a C or llc was worth it - given that even one misstep can allow a lawyer/judge to pierce the veil and come after your assets anyway. You must be very careful when folks tell you that a C corp or an LLC will protect you! In theory yes it will, but in practice so many people either do not set up the corporation correctly, or they do not maintain it correctly. IANAL, but this is something you really need to discuss with an advocate/advisor (and not someone who stands to make money on the back end).

For the new company my wife and brother in law are starting we're a C corp with a subchapter s declaration. There is not such thing in most states as an S corp. The S (subchapter S) is a tax declaration you register with the IRS for taxing purposes -not for registration purposes. It basically allows your tax obligations to flow through to the owners personal tax returns (profits and losses) rather than have them double taxed as in a straight C corporation.

LLCs are sort of like that - but I am not where near an expert to even discuss LLCs. I did not take time to learn either because in NC - creating a C corp is just 125$ plus a yearly $25 fee. For an LLC its $800 to create one and then a yearly fee of $200 - and I felt that extra money could be better spent on creating product and marketing it. It might be different in your state so check it out. I will say that most professional folks I know recommended an LLC if you are not looking to sell stock/cash out in the future.

Hope this helps. But IANAL - you really need to discuss this with your advisory team and legal/accounting professionals before taking the word of anyone on a forum.

Also, this forum has a great search function too.

Good luck,
--Jack

lol i used legalzoom.com to setup an LLC i setup an extended line of credit in my companies "Name" and used that to grow my business(hire outsourcing) that paid off handsomely!

I want to run, plan and decide for my business so I am in a single proprietorship.

C Corp now, started out as a sole proprietor.
I don't like LLC's, they can get you in trouble.

You should make a poll (: