Did you get anything other than an LLC and EandO insurance?

Views: 36

Reply to This

Replies to This Discussion

You can be a sole proprietor and have a company name. I do. In my state (MA) you register the name with the town clerk. I have a resellers license in order to be able to mark up materials and collect sales tax on them in the rare cases where I do supply materials (services are not taxed here...yet).
Mine are taxed (in state) but SD has a bimonthly on-line filing and payment system. They even send a reminder!
with a sole prop aren't you personally liable for debts the company incurs?  I guess it doesnt really matter though if you are small...

Yes, but if you own a corporation it does not completely protect you from debt either, especially if you own it all yourself.

 

There is not a lot of expense in what I and other residential/light commercial designers rack up. I've got a four year old lap top, two old plotters (one from Ebay for $150 and one given to me from an employer who upgraded), a blueprint machine (another hand me down that I seldom use), Acad Lt 2008, digital camera, measuring equipment, paper, ink/toner and gas. ... it feels like zero overhead.

 

It costs $1,000 to start an LLC in MA and then you have another tax number, more rigid record keeping and reporting, separate corporate taxes,and required liability insurance. That's a big chunk of time and additional overhead expense for a company grossing $10k. Grossing $10k is not a given for a start up either. I've been doing this for several years and that is about how much I can handle while holding down a full time job and a family. 

 

Taxes are done on a regular 1040 plus a few other small sheets. I usually do them myself because I don't have much to write much off. ... very simple.

 

 

I agree-- in a small service business, company debt is a minor consideration.  Even if you incorporate, most companies who give you credit/loans (venders, credit cards etc) will require your personal guarantee anyway.

Hi Chris,

 

I would definitely check with an attorney and/or CPA regarding which setup would be best for you in terms of taxes, etc. They can also set you up to deduct a percentage of utility bills, etc based on the s.f. of your office. Incorporating also help start and establish business credit. I started out from home almost 5 yrs ago and incorporated my business. I also had to get a home occupation permit that allows me to use my home address as an office address. Check your local regulations regarding running a home business as well as any HOA rules.

The opportunity came up to work for a big corporate client and that is when I got E&O insurance. Having it has allowed me to pursue a wider range of projects.

Good Luck!

RSS

Forum

Design Fee Shock

Started by Greg Byrer in PROFESSIONAL PRACTICE. Last reply by henry cohen 7 hours ago. 28 Replies

PC vs MAC

Started by laurent pamela . asla in TECHNOLOGY. Last reply by Alec Johnson, RLA 10 hours ago. 17 Replies

Share your favorite CAD "tricks"

Started by Rebecca R. in TECHNOLOGY. Last reply by Chris Thompson 15 hours ago. 43 Replies

Renderings

Started by Stephanie Appel, LEED AP, ASLA in GRAPHICS. Last reply by Ben Langford yesterday. 1 Reply

Sketch-up pro + Vectorworks/Landmark on iMac!

Started by laurent pamela . asla in TECHNOLOGY. Last reply by laurent pamela . asla on Thursday. 11 Replies

Latest Activity

CHOCKALINGAM liked Andrew Spiering's blog post How to Make a Portfolio: 5 Tips for Telling your Story
16 minutes ago
Mina Petrova Yanakieva commented on John Immanuel R. Palma's photo
Thumbnail

bird deck

"Wow, John thank you for the complete walkthrough... I've been doing my visualization in a similar way for quite some time but it has never occurred to me to use the watercolor effect or a NPR effect /I would call it creating  your own mask…"
55 minutes ago
John Immanuel R. Palma liked Kody Smith's photo
2 hours ago
Heath Blair liked Kody Smith's photo
2 hours ago

Follow Land8

I would like to receive:

Follow Land8 on Pinterest

© 2013   Created by Andrew Spiering.

Badges  |  Report an Issue  |  Terms of Service