Discussion:From SP to SMLLC?
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| Revision as of 21:05, 6 June 2009 Fsteincpa (Talk | contribs) (Inchurance inchu) ← Previous diff |
Current revision Dude7707 (Talk | contribs) (Thanks everyone) |
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| Dude, in your case, inchurance inchurance inchurance is the answer. }} | Dude, in your case, inchurance inchurance inchurance is the answer. }} | ||
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| + | {{ForumReplyPost|UserID=Dude7707|Date=6 June 2009|Text=Thanks everyone for your input. Of course I meant E&O insurance rather than ERO...senior moment! }} | ||
Current revision
Discussion Forum Index --> Advanced Tax Questions --> From SP to SMLLC?
Discussion Forum Index --> Tax Questions --> From SP to SMLLC?
| 6 June 2009 | |
| Currently WA State SP with few clients and NO EE's, who loss a major client. Now looking for Corporate full-time Job...however feel it would be best in the interim to switch to LLC as Single Member or S-Corp for main purpose of protecting my personal assets?
Wanting to know my options: 1. Stay with SP and just get business Insurance 2. Stay with current status of SP and hope no one sues me.....Not a practical decision. 3. Switch to SMLLC however will still have to pay SE Tax course currently have losses so not an issue at this time until I am able to pickup more clients. 4. Switch to LLC as S-Corp. Thanks for any comments/suggestions. | |
| June 6, 2009 | |
| Probably too much to sort out here. Some of this is legal...why are you concerned about protection? Will the LLC or a corp in fact protect you? Many times, the real world answer is no, and if you're a professional of some sort, usually always, no.
Short answer...an LLC is an expensive to put one layer of protection up without changing a thing on the tax front. Insurance is advisable for real protection. An S corp only makes sense if you have enough profit so that a reasonable salary would be justifiably less enough to cover the costs of being a corp. | |
| 6 June 2009 | |
| why are you concerned about protection? Becasuse I'm an EA and have personal assets I don't want a potential bad client to sue me therefore want to have an entity that will not let them go after my personal assets and looking for the least expensive option. Another option is to get ERO insurance or business liability coverage as was discussed. | |
| June 6, 2009 | |
| Sorry, exactly the problem you cannot solve. Don't know about WA, but nearly everywhere, a pro cannot shield themselves from malpractice with an entity. Buy insurance. | |
| 6 June 2009 | |
| Inchurance inchurance inchurance. I see so many small businesses who want to start a corp for protection. And JR, that is the exact question I ask them, what is it you are trying to achieve. In fact that is the question I almost always ask when a client wants to do something. Once I find out what they are trying to achieve, I can help them try to structure things properly.
Dude, in your case, inchurance inchurance inchurance is the answer. | |
| 6 June 2009 | |
| Thanks everyone for your input. Of course I meant E&O insurance rather than ERO...senior moment! | |
