Well it looks like I have finally decided to step out on my own. One question I have is whether I should go with a PLLC or sole proprietorship. What are some of the pros and cons of each?
Young Buck
Where are you? Each State allows different types of companies. Are you going to be doing big business, small business, hire employees, no employees??? Good luck.
PLLC is just another layer for them to try and get through to get their hands on you.
Tax wise its pretty much the same as sole prop. It may look a little better to be in a PLLC than not?????
> Where are you? Each State allows different types of companies. Are you going to be doing big business, small business, hire employees, no employees??? Good luck.
Young Buck, those are the questions that need answering. Especially the part involving employees, either now or down the road.
It may be worth the time & money to talk with a tax attorney to get you pointed in the right direction for your business model.
Good luck
When I opened the office in 2002 I met with a business lawyer and decided to incorporate as a chapter S corporation. It works much as a sole proprietorship with a flow through accounting.
Meet with a business attorney and find your best solution. But know, going into the meeting, what your business plan is !!
What foggy said.
There is business plan software out there that will guide to though the plan. Doing a business plan opens your eyes up.
As stated above, consult a professional.
An accountant and an attorney should be helping you set up whatever your eventual business will be.
Nahhhhhh! Make like a double-naught spy, as Jethro Bodine called them, and fly below the radar. Stealth surveying. If you don't exist, how could you possibly need to do any paperwork for the Infernal Revenuers, as Granny called them.
I was incorporated as a PLLC, filing as a sub-chapter S. I don't recall what the advantage to that was, but it was very important to file as such at the time of incorporation according to the lawyer and my accountant. It would be a good question to ask.
Good luck!
Sole proprietorship provides the least amount of protection should lawyers or creditors ever come after you - there is no separation between the individual (you) and the business. Corporations in general provide a shield from personal liability, existing as a separate & distinct entity from those who own it. There are C corporations & S corporations (diff tax scenarios), Professional Corporations (PC) and of course the limited liability corporation (LLC). There are also partnerships, limited partnerships & limited liability partnerships, but sounds like those wouldn't be an option.
I did an LLC several year ago because it was supposed to offer a slightly better protection against potential lawsuits than a sole proprietor. I finally got rid of it and went back to a sole proprietorship due to the annual paperwork and fee to keep the LLC.
Thanks everyone. Definitely time to get the professionals involved. I plan on operating in two different states, WV & OH. That may throw a whole new wrinkle into things.
Not as much as you may think. We operate primarily in WV, OH and KY but also a few others. The main thing is where you will be based out of. Make sure you obtain all the proper business licences from the city, county, whatever in addition to your COA's.
I also am in ohio young buck, be sure to get your coa if your operating as a firm, don't need it for sole proprietor. the board comes down hard on those without a COA
New Business/Perry
That must be a state issue. Here in AZ, I've had a LLC for going on 5 yrs now, all taxed as a sole proprietor. I file 1040-ES (estimated) quarterly deposits, and annual taxes are all via 1040 Sch A, B, C, with some supporting documentation - same as a regular sole proprietor. I don't have any employees so I have no state unemployment, 941, 940, etc statements to file. However I do carry workmans comp on myself (for client reasons)
The state doesn't require any quarterly deposits, so I always owe them something on Apr 15.
When in MI I stupidly formed a C Corporation in 1991, when I should have formed a Sub S (no LLC's back then). What a nightmare that was - from start to finish. Especially after going solo circa '95 and had no employees. As a kicker, when I tried to disolve the corp in 2004 it took me over 2 years to finally get it done.
Young Buck I noticed no mention any where of what we call
professional indemnity insurance , Possibly E and OE Insurance?
I suggest that you get this coverage from a reputable insurance company to protect you from cock ups. Surveyors like Larry Phipps and Bruce Small could point you in the right direction. I know many here do not have it, because it is another cost to business. Here in OZ it is mandatory for all licensed surveyors to carry at least 1 or 2 million minimum. Sure I have been nearly 34 years in my own business with out a claim, but I figure every day that passes is potentially a day closer to have to make a claim. I have always thought it will be levels , but you just never know. A telephone interruption at the time you are making a change to a plan or a data base computation could be such a simple occasion to be the cause for a claim.
Do not fall for the trap that your fee was say less than a grand because the flow on effect of a mistake could run into telephone numbers when discovered and remedied.
Having good insurance coverage will keep the wolves from the family jewels and assets.
RADU