Starting a Business

[rp127777]

Not sure if this is allowed here, if not then can delete.

I see many of FOG members have their own business and wanted to ask them how and what type of business they have and why.  Did you start with LLC, Corp, or DBA?

A little history of myself, I have recently retired and am getting into woodworking as a hobby, but in time would like to make a little money..to pay for Festools. lol.  So, just wondering which is best approach and how you went about it.  Also for tax purposes.

Thanks,
Richard

 

[Sparktrician]

I chose a SMLLC for liability, insurance and financial (tax) reasons.  You might look into the licensing requirements in your area for a handyman business.  Be absolutely sure to have a chat with your insurance agent, too.

 

[harry_]

When I started out as a one-man show, I was a dba. Once i got to the level of having employees and being a subcontractor on multi-million dollar projects I migrated to an LLC.

 

[ScotF]

I am not an attorney, but my advice is to set up a legal entity where you can limit liability to the business - and operate it like a legal entity. A DBA is not a legal entity - and therefore, no protections businesses afford. It is easy to form an entity with the Secretary of State and don't forget about local licensing requirements and tax requirements. The point about insurance is good advice too. It is an easy risk to avoid by setting thing up correctly at the start.

 

[Pnw painter]

I'd recommend that you talk with a tax accountant or tax attorney. It's likely that they'll recommend an LLC, but depending on your specific situation they may recommend something else.

If your main objective is to write off the cost of buying tools and you're not really really planning on selling anything this may be problematic.

Here's a good article that discusses writing off expenses for hobby businesses. Hopefully it's helpful.https://www.nolo.com/legal-encyclopedia/operating-losses-prove-hobby-business-30000.html

Sent from my iPhone using Tapatalk

 

[sancho57]

I books has a a couple of good books. I ot one by William Benitez . He has 2 one is free the other you have to buy. They both are very good. Try the free one first  it will give you somethings to think about then get the one you have to buy