I have a home based business, do I have to do a limited Liability Corporation?
Lisa A asked:
I want to protect myself from people, but it is only a home based business.
When do you or should you incorporate your business? If I have to incorporate where is the cheapest to do it and why?
I make my own cosmetics from home.
I want to protect myself from people, but it is only a home based business.
When do you or should you incorporate your business? If I have to incorporate where is the cheapest to do it and why?
I make my own cosmetics from home.
Which is the safest to do:
Corporations
Limited Liability and so on. Which do I do?
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Tags: Cosmetics, Incorporate Your Business, Limited Liability Corporation
It depends on how much paperwork you want to do.
A Corporation makes your business into a seperate entity from you. That helps protect you from personal liability.
If you mess up on the corporate paperwork, it leaves you open to personal liablity.
An LLC offers the SAME seperate entity protection of a corporation, but is less paperwork than a corporation, so it might be safer if you are not a paperwork person. LLC means LIMITED LIABILITY COMPANY, it limits your personal liability.
I think that some states have seen the popularity of LLCs have have increased the fees for them though. It takes time and study to make an intelligent decision.
PS: Do you need a retailer for your cosmetics?
Fisrt of all the difference between a Corporation and a LLC is the amount of protection each provides and their tax structures are different. As a Limited Liability you can be the only member. It affords you the protection of Corporation liabity wise and as a partnership for taxes and profits.
An LLC may be best if it just you. I would incorporate the moment I was planning to sell something. Delaware is pretty good. If you go to yahoo business, or score or the SBA website they offer hgood resources and checklists.