Need help selecting a legal structure for my business

Discussion in 'Legal and HR' started by cthorn, Apr 5, 2013.

  1. cthorn

    cthorn
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    Hi everyone,


    I've been researching and am having trouble selecting a legal structure for my business. I know all businesses are different and each structure fits a different business. I'm planning on starting a technology repair business, (repairing phones, computers, consoles, etc.) and am stuck on selecting a legal structure. I know sole proprietorship is the easiest to form but it doesn't provide any liability protection and banks are less likely to give loans to these type, I would need legal liability because I plan on hiring employees. So its come down to a S Corporation or an LLC; from what I've read, an LLC is most appealing but the self-employment tax is pretty heavy, especially since its tax on percent of profits. I would be the only owner of this business and don't plan on having any shareholders or any partnerships anytime soon (if ever), so I wasn't sure if I would even qualify for an S Corporation.

    Let me know what you guys think. Any advice is much appreciated.
     
  2. scifi

    scifi
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    If you plan to be the only owner, sole proprietorship would be the only option and most easiest to form...LLC also needs two partners atleast to form a legal structure .....

    Technically inidvidual ownership, then either pvt. limited or sole proprietor is the only option...private being costly and difficult to manage for your business ......
     
  3. surge

    surge
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    Registering business on sole proprietorship is easiest and fastest way to get started with your new business. LLC, LLP or Pvt Ltd, depending on which country you are from may required a high capital funds and directors to register.
     

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