[opportunitize]

when starting up a small e commerce website is it best to register as a sole trader ? when its only small

[opportunitize]

i thought it was very complicated to register as a llc. is it ?

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Originally Posted by opportunitize

i thought it was very complicated to register as a llc. is it ?

Not complicated at all.

[1off]

Who said its less than a hundread dollars? Where you heard that from? Send me a pm i need to know more. Never saw it that cheap to register an LLC.

Originally Posted by jmenq2

For less than $100 and in less than 5 minutes you can create an LLC. Does the "it's less expensive and easier to operate as a sole proprietorship" argument win me over when the downside is unlimited liability? The answer is no. It's just too inexpensive and easy for me to create an LLC to justify not doing so and leaving myself open to unlimited liability. Again, this is just my opinion though.

[Cole Taylor]

Fees vary by State, look here 1off:

State Guide: Forms and Fees for Business Formation -

[1off]

ok, but no way this comes to less than 100 dollars in new york. Legalzoom does it for like 249, anyone who wants to register an LLC go to legalzoom. No headache, no problems.

[SRichey]

Originally Posted by jmenq2

Why is it a bit premature? Can you think of an advantage to operating as a sole proprietor rather than, say, an LLC?

To create an LLC, all you have to do is file Articles of Organization and obtain necessary permits, right? Not a whole lot more difficult that a sole proprietorship but with HUGE advantages over it, wouldn't you say?

Correct me if you think that I am wrong. I would definitely like to know of any real advantages of a sole proprietorship over an LLC, as I am presently unaware of any.

I would definitely say that the tax advantage is what you're looking for. However the corporate liability only gives you a minor veil and a little more paperwork for a good attorney to shoot right through. Without a board of directors and a fair amount of shareholders you really aren't protected by the corporate shield.

[derekmajor]

I'd avoid incorporation simply because of the money. If you don't have shareholders and you're just starting out...simply check your local city bylaws which is probably the only thing you have to register for. A trade name would be needed but that is cheap too.

Take any business course and they will mention the pro's and con's. I think jmeng2 mentioned something about unlimited liability which is true. But you can easily obtain insurance to cover yourself. I've heard of cases where they have gone after directors too so don't fool yourself into thinking you are completely non-liable for any action simply because you are incorporated. I think the word Enron may be a good example of where you couldn't hide behind the corporation.

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Originally Posted by SRichey

I would definitely say that the tax advantage is what you're looking for. However the corporate liability only gives you a minor veil and a little more paperwork for a good attorney to shoot right through. Without a board of directors and a fair amount of shareholders you really aren't protected by the corporate shield.

To what exactly are you referring? You lost me. I'm trying to figure out how this applies to an LLC. And even with regard to a corporation, I'm just curious how you arrived at your conclusions and what support you have for them.

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Originally Posted by derekmajor

I'd avoid incorporation simply because of the money. If you don't have shareholders and you're just starting out...simply check your local city bylaws which is probably the only thing you have to register for. A trade name would be needed but that is cheap too.

Take any business course and they will mention the pro's and con's. I think jmeng2 mentioned something about unlimited liability which is true. But you can easily obtain insurance to cover yourself. I've heard of cases where they have gone after directors too so don't fool yourself into thinking you are completely non-liable for any action simply because you are incorporated. I think the word Enron may be a good example of where you couldn't hide behind the corporation.

Three responses:

1) Is business insurance going to be less expensive than operating as, say, an LLC?

2) If you are attempting to protect yourself with an insurance policy, what happens if an accident of some type results in liability that exceeds the limits of your policy?

3) With regard to Enron, it's quite simple - don't do anything illegal or unethical! It's really not that difficult.