Assuming you make wooden and vinyl and painted type signs, how are your sign shops registered in your respective State and what was the fee for it? On Pennsylvania Government website they have choices such as Sole Proprietor or LLP. Do any work making signs part-time from home?
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Business Structure for Sign Shop
- Thread starter Perks
- Start date
James Burke
Being a grandpa is more fun than working
There are advantages and disadvantages for each business structure. One provides a little more "freedom" while the other offers "protection". I strongly suggest you research your options and plan accordingly. If it were me, I'd lean toward the LLC.
JB
JB
Agree with James. Go check out a few NOLO books from the library and do your due diligence. I'd guess LLC will be your best bet OR sole proprietor with a standard $1 million business insurance plan. C corp and S corp don't start to make sense until you're making significantly more than you would be as a part time from home guy.
rjssigns
Active Member
Our attorney's famous statement is: "Divorce yourself from your business".
What he means is to absolutely separate your personal assets from your business. A lawsuit can crush a business and you want your home, toys etc...protected from the lawsuit.
Yeah I know some smarta** will say they can still get to it, but done correctly it will be a real bear for them to do so.
What he means is to absolutely separate your personal assets from your business. A lawsuit can crush a business and you want your home, toys etc...protected from the lawsuit.
Yeah I know some smarta** will say they can still get to it, but done correctly it will be a real bear for them to do so.
FireSprint.com
Trade Only Screen & Digital Sign Printing
You're talking about business structure.
A sole proprietor is simply you. You use your SSN to register and you have 100% personal liability if you take out a business loan, have terms from your vendors, get sued by a customer or employee. There is not any real limit to what can be taken from you personally if chit hits the fan. The advantage to being a sole proprietor is you can usually be set up in a matter of hours and for free or very little charge. Complete an IRS form SS4 (Google it)
An LLC or Corporation offers you personal protection from Liability as long as you follow certain rules. You're esentially creating another business entity that you and partners will own, but it's technically it's own person in the eyes of the government. If something happens like a lawsuit, your personal assets will likely be protected.
You can set up a corporation or LLC on sites like MyCorporation.com or LegalZoom. There is a cost and it will take some time. You can also speak with your accountant or lawyer for help.
If I understand your question correctly, you can't just select LLC/Corporation on a form if you have not actually set one up.
A sole proprietor is simply you. You use your SSN to register and you have 100% personal liability if you take out a business loan, have terms from your vendors, get sued by a customer or employee. There is not any real limit to what can be taken from you personally if chit hits the fan. The advantage to being a sole proprietor is you can usually be set up in a matter of hours and for free or very little charge. Complete an IRS form SS4 (Google it)
An LLC or Corporation offers you personal protection from Liability as long as you follow certain rules. You're esentially creating another business entity that you and partners will own, but it's technically it's own person in the eyes of the government. If something happens like a lawsuit, your personal assets will likely be protected.
You can set up a corporation or LLC on sites like MyCorporation.com or LegalZoom. There is a cost and it will take some time. You can also speak with your accountant or lawyer for help.
If I understand your question correctly, you can't just select LLC/Corporation on a form if you have not actually set one up.
CheapVehicleWrap
New Member
Craigslist if full of them.
cdiesel
New Member
S Corporation. No reason to be anything else. A lawyer will charge about a grand to set it up (I think you can do it cheaper on legal zoom or similar). The main advatages are 1) that you more detached from the business in terms of liability, especially if you have employees working for you. 2) You draw a salary and pay typical income tax on those wages (anywhere from 15%-35% for most people). Anything that the business makes as profit on top of your salary and all expenses is taxed as a dividend, which is currently 15%. That's mo money in your pocket.
4R Graphics
New Member
As most have already said S Corp is the way to go it really isnt that much of a big deal to do and maintain (taxes will be a little tuff so get an accountant) but you will protect your personnal assets do you want to be sued and have them take almost everything from you or would you rather have the company be sued and possibly be bankrupted and go out of business but your personal stuff (house etc..) not be touched. Go the S Corp route. Do you know how many businesses have been sued closed down only to be restarted under a different name months later? Alot!