Jump to content

Sole Proprietor vs LLC

esoterik_appeal
 Share

Recommended Posts

esoterik_appeal

esoterik_appeal

Posted
Posted

What's up tint pros, I have a question about running side work out of my house. If I purchase liability insurance would it limit my risk as a sole proprietor or would it still be advisable to form an LLC?

 

I've only been doing a few jobs here and there, but I'm considering ramping things up a bit. Thanks for your input!

Link to comment
Share on other sites
jh812

jh812

Posted
Posted

I'm no tax expert by any means and it's best to speak with an account but I started out about the same as you and was advised to do sole proprietor. I've been in business as that for roughly 8 years now with no issues. Will likely incorporate next year for tax benefits.

Link to comment
Share on other sites
Stewy

Stewy

Posted
Posted

As a sole proprietor, if your business bankrupts and your business is in debt you can get caught up with your personal assets. With LLC your personal assets are safe. Also, in my state when you recieve money from your company as a sole proprietorship you get taxed more percentage. Im not sure how much more but you get taxed almost 10% more. Make sure that you set yourself up as an S corp and not a C corp.

Link to comment
Share on other sites
Tint Slayer

Tint Slayer

Posted
Posted

If you get an LLC you have the option to file like a sole proprietor or corporation, if you're a one member LLC you can file your taxes like a sole proprietor meaning you list a schedule C showing how much you made less your expenses. Or you can opt to file like a schedule C, go to legalzoom.com they have a ton of info and you can call they can guide you and/or answer your questions because they want a sale.

Link to comment
Share on other sites
Old timer

Old timer

Posted
Posted

If you're going to set up as a corporation you must have your quarterly meeting minutes. This will be the first thing requested by an attorney in a lawsuit against you. You don't have the minutes it's called puncturing The Veil. Your Corp won't do anything to protect you.

Link to comment
Share on other sites
Tint Slayer

Tint Slayer

Posted
Posted
13 hours ago, Old timer said:

If you're going to set up as a corporation you must have your quarterly meeting minutes. This will be the first thing requested by an attorney in a lawsuit against you. You don't have the minutes it's called puncturing The Veil. Your Corp won't do anything to protect you.

"Piercing the corporate veil" is what my Lawyer called it. It's like they'll get you no matter what, I have very very few assets in my name, smart business ownership and asset self protection starts at home. My 2 cents on it.

Link to comment
Share on other sites
Jake

Jake

Posted
Posted
18 minutes ago, Tint Slayer said:

"Piercing the corporate veil" is what my Lawyer called it. It's like they'll get you no matter what, I have very very few assets in my name, smart business ownership and asset self protection starts at home. My 2 cents on it.

:yeah and also never mix personal expenses in with your business account. If you do get an audit and you have any personal expenses mixed, the burden of proof is on you to prove whats business and whats not. If your books are clean with only business stuff, the burden of proof falls on the IRS to prove they are not. Just like Tint Slayer, just what i was told by my accountant. 

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share
Go to topic listing
  •   Sponsored by
    tintwiz

    auto-precut.com

    signwarehouse

    martinmetalwork.com

    tinttek

    filmvinyldesigns

    ride wrap

    Conco

    Lexen

  • Activity Stream

    1. 7

      Air80 vs Stratos70 Windshield

      Since there is no limit of darkness on the top strip, I have wanted to tint it. But I would go very dark, to help with sun glare in the evening.
      mikenot in Window Tinting - General Discussion
    2. 7

      Air80 vs Stratos70 Windshield

      Yeah that’s a very fair point to a degree I’m probably overthinking it. I don’t see really significant glare reduction until you get into much darker tint. Like you I think visibility for me is more important living in the country. I’ll probably see what the specs list the differences between 70% and 80% and then double check with the tinter as to what they recommend. Likely will end up with 70% with a strip along the top. Air80 seems to be much more popular, not sure if it’s due to performance or the difference in cost being so much more for the stratos. thank you
      joshiemcduck in Window Tinting - General Discussion
    3. 0

      Process

      Hey guys - so I work for a vinyl graphics company that is adding window tinting to their repertoire and I had a question about your guys' ideal process. I have my plotter set up and my window tinting software ready to go, but I am completely ignorant about the way that tint installers prefer that things be cut. Currently, I will plot/weed the tint and cut the backing away as much as I dare before handing it over to the installer. I was thinking that the installer would prefer the tint to be cut to shape which I believe I can achieve with the perf cut on my plotter. Is that the typical process or should I not be worried so much about it being cut to exact shape?
      DonMeads in Plotters and Cutting Systems
    4. 7

      Air80 vs Stratos70 Windshield

      Im in TX, plenty of of what you mentioned. While I do sit higher in an SUV, glare reduction is not improved much at all with what I have. My 80% is almost clear, not dark at all. With all tint, it adds a bit of reflectivity from the outside, which I notice makes it slightly harder to see from the outside looking in, in the form of a glare not darkness. At the end of the day, it's not permanent, it's only money!
      mikenot in Window Tinting - General Discussion
    5. 0

      PPF installer for hire in SoCAL

      Hello. My name is Adrian i have good experience with paint protection film and i just moved to California, Irvine, i'm open to travel one hour away for the right job. You can contact me at 5717330693
      adrianpaun in Classifieds • Employment • Marketplace
    6. 11

      Boat window tinting tips

      or "bust out another thousand"
      TintDude in Window Tinting - General Discussion
    7. 11

      Boat window tinting tips

      Best tip would be, “Sorry, no boats”.
      pbalentine in Window Tinting - General Discussion
    8. 11

      Boat window tinting tips

      The answer is to not heat that area too much so that you leave some slack in the film for when you get it to the inside. Also cut your pattern a little large so that you can trim a thread off the edges after shrinking to not have a furled edge. After you do a few of those you'll figure out how much to leave/trim to not have any light gaps. Also I'll leave a hardcard wrapped in a microfiber in the bottom overnight to collect water and keep pressure on the film while it dries. Sometimes you can take the top rail off the glass if the jackwagon boat builder didn't put too much pressure on the glass package when it was installed. If you pull the rail off of a tight package it's a pita to get back on, looking like it could crack the whole time. Congrats on getting it done. I've seen plenty that couldn't, which is why I price them like I do.
      Dano in Window Tinting - General Discussion
    9. 11

      Boat window tinting tips

      Thx everyone for the tips the install went fine, however i did run into a new problem on the main curve of the glass from thr outside the tint would lay flat on the big curve but when applying it seemed like there was too much tension and it would not stay down i ended up heating it up and flattening down but some of that area got overheated and warped a little, if you know how to tackle this problem please help me thank you!
      Lauty in Window Tinting - General Discussion
    10. 6

      Removable rigid window tint sheets - WTF?

      civicrice in Window Tinting - General Discussion
×
×
  • Create New...