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  1. #1
    Join Date
    Mar 2010
    Location
    Troy, OH
    Posts
    69

    Default Sole Proprietor or LLC

    More of a business question than a marketing question; but do you operate your business as a sole proprietorship or an LLC and why?

  2. #2
    Join Date
    Aug 2005
    Location
    Washington County, Maine
    Posts
    2,867

    Default Re: Sole Proprietor or LLC

    Please, Please talk with your accountant/lawyer/financial adviser before making a decision regarding choice of business entity. The wrong choice could cost you serious bucks. Now to answer your question - neither. My business is at this point a hobby and so my income and expenses are reported on my personal tax return. If someone gets sick from eating my honey or gets seriously stung by my bees and I am somehow am deemed negligent, I will be in serious trouble as I carry no insurance for that sort of thing.
    Master Beekeeper (EAS) and Master Gardener (U Maine CE) www.beeberrywoods.com

  3. #3
    Join Date
    Mar 2010
    Location
    Troy, OH
    Posts
    69

    Default Re: Sole Proprietor or LLC

    Andrew - By definition, that is a sole proprietorship. You are bearing all of the risk and responsibility, put also receiving all of the profit/loss on your 1040

  4. #4
    Join Date
    Dec 1999
    Location
    DuPage County, Illinois USA
    Posts
    9,431

    Default Re: Sole Proprietor or LLC

    I think you would be in serious trouble regardless of what business structure you use. The s corp. and LLC don't have the liability protection they once had. I'm a s corp, but thinking about going back to sole proprietor. You have to weigh the cpa fees for a corp vs. the lower cost for a proprietorship over what you save in taxes.
    Regards, Barry

  5. #5
    Join Date
    Dec 2002
    Location
    Denver, Colorado
    Posts
    5,079

    Default Re: Sole Proprietor or LLC

    I'm essentially a sole proprietorship. But I haven't made a profit yet so it just goes in on my 1040. It's still my goal to make a profit though!!! Maybe as I continue to find what works best. Until then, it's a hobby.
    Solomon Parker, Parker Farms, ParkerFarms.biz
    11 Years Treatment-Free, ~25 Colony Baseline

  6. #6
    Join Date
    Aug 2005
    Location
    Washington County, Maine
    Posts
    2,867

    Default Re: Sole Proprietor or LLC

    The key word in my post is "hobby" - income as misc income (line 17 I think) and expenses to the extent of income on Schedule A. If I were to meet the criteria of operating as a business, I could easily be showing losses to wash against other income.
    Master Beekeeper (EAS) and Master Gardener (U Maine CE) www.beeberrywoods.com

  7. #7
    Join Date
    Nov 2008
    Location
    Remsen, NY, USA
    Posts
    367

    Default Re: Sole Proprietor or LLC

    I have had businesses run as C-corps, S-corps, and LLC's. Now, I run all my businesses as Sole Proprietorships. As to why, it's much easier paperwork and tax-wise. Also, any of the "corporations" only give you a false sense of security against personal liability. You're better off spending your money on a good agricultural insurance policy if you're worried about liability.

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