Type of ownership???...I need your advice!

[ar2ro77]

I want to open a cell phone store, but I do not have experience doing bussiness by my self...the first thing I have to decide is what kind of structure or ownership I should choose: Corporation, llc, sole proprietor????...I know there are some bussiness owners on this forum, what is your advice???...thank you!!!

[markymark805]

Depends alot on what state you are in.
But with the ability to get into a corporation in other states and use them in your home state, that gives you alot of options, just look into your state's laws about an out of state corporation working in your state. Corporation gives you alot of personal protection as far as personal asset protection.

But since im poor and havent had the extra funds to spend on all the corporate fees california charges even for out of state corps to operate within the state, i only operate as a sole proprietor

[captainkirks]

To me there is not good to go with a corporation if your just starting out. The cost is high like Mark said. Now days everybody wants a personal guaranteed anyway. You can write off a lot more as a sole proprietor anyway.

[Wrecked Johnson]

LLC for me yo!

[markymark805]

Write off's as far as it comes to corps varies. If you get an S Corp you can have pass thru taxes to your personal taxs, if you get a C Corp you dont, then its all taxed and writes off are all handled and stay at the corporate level. I might of got the 2 back wards, but one you can and one you cant pass the writeoffs to your personal use.

One of the easiest forms to deal with it, at least in my mind, is an LLC, in CA its still like 800 dollar fee's to set up an LLC in the state.

But Captain's right, everyone wants a personal guarantee, the way of corporate credit for newbies is long gone i believe. Roll as a sole propriertorship , just get all your licenses and permits dialed in and not worry about it.

[eric303]

I actually went to school for business management, NEVER EVER do a business as sole proprietorship, that should not even cross your mind. Set it up as a LLC or a S-Corp, contrary to what most might think, a LLC or S-Corp is alot cheaper to establish than you think. A S-Corp would also allow you to have flow through tax advantage. The biggest reason for not going through sole proprietorship even though you can benefit the most from this form of ownership is because you hold all the liability, so if someone sues you, they can take your house, your car, everything. Where as if you set up as a LLC or a Corp you can only lose what the company controls.