What kind of business are you?

M

martyk13

New member
I am in New York and have been operating as a dba or sole proprietor. Thinking about switching to LLC or an S Corp. It's just me. I don't have employees.

What about you? Why are you the type that you are? How many employees do you have? Advantages? Disadvantages?

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I have been a sole proprietor for more than five years now. This mode has a couple of benefits, such as maximum privacy, keeping all the profits, fewer taxes, and fewer registration fees. In general, owning such a business is simpler.
You are a sole owner and can do anything with the business to your own liking and change its structure in any way. You can also hire lead generation agencies like Belkins to help you establish B2B connections. More connections you have, the more beneficial contracts you will have.
There also are disadvantages, such as no liability protection or difficulties in getting financing, but they are less significant for me.
 
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I have 10 full-time employees and around 4-5 part-time jobs. Mostly we are operating in NYC state. Before covid-19 pandemic, I had around 30 employees, but because of the lockdown, I needed to shorten my expenses, and I fully moved my business online. Right now, most of the employees I have been working from their homes as customer support specialists, and part-time workers are working on receiving and sending packages. I'm currently considering hiring the proper eCommerce agency to optimize my site. I would hear a lot of good about Transform Agency; if anyone worked with them by any chance?
 
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I run a small LLC as well, and I totally get where you're coming from. I started out as a sole proprietor but eventually switched over to an LLC for added liability protection. It's just me running the show, so I don't have any employees to worry about. The main advantage for me is liability protection, but there are also some tax benefits.
I haven't personally worked with Transform Agency, but I've heard good things about them too. It's always helpful to get recommendations from others who have had positive experiences.
Recently, I stumbled upon a webpage with a post on*a financial advisor succession plan. It was really interesting to learn about company valuation and succession planning, especially as someone who hopes to grow my business in the future. It's important to have a plan in place for the long term, even if things are going well right now.
 
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Single Member Limited Liability Companies (SMLLC's) are taxed as sole proprietorships on the federal level and most states (not sure about NY) also unless you elect another status which is rarely beneficial and rarely elected by SMLLC's. Single Member LLC's are viewed as "Disregarded Entities" by federal tax law and most states so you will report all your income and expenses on Schedule C your Form 1040 for the fed just like a sole proprietor. Where SMLLC's differ from Sole Proprietors is all the filings you will need to do to operate at a SMLLC. Most of that filing with will be with your state's Secretary of State. Also, if you pay personal expenses through the LLC, you risk "piercing the veil" and lose your limited liability and then lose all the protection of being a limited liability.

https://bench.co/blog/tax-tips/single-member-llc/#v2li-b
 
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