LLP vs Sole proprietorship

[rvt1000]

Ok, so do most of you out there register as a LLP or SP? I'm assuming LLP since wedding photographers tend to get sued often, the LLP helps keep personal away from business in terms of assets.

[condyk]

Get a good Accountant and ask them. Mine has saved me more than their annual fees each year and save me a lot of hassle (which is worth more) They know what they're talking about ... well, usually ;-)

[ImagineTNT]

Ditto. Accountants and Lawyers are definitely something worth paying for to get good advice.

[rvt1000]

ya, in an ideal setting that would be the case, but as a student starting up his own little business, don't have that kind of money right now...
so thought i'd just get an idea from most of you about your experiences as wither LLP or SP

[GPR1]

As non-photo related business advice, I would choose an LLP (or LLC where I live) over SP, to protect your personal assets. The LLC "income" flows to your personal taxes as if you were a SP, for the most part.

Greg

[spencer87]

I have been asking this question a lot for myself (also a student) and asked a couple photographers and my friends dad, who is an accountant. The advice I got from pretty much everyone I asked was to start out as an SP at first, since I am doing mostly small jobs in my spare time. They recommended that in 6 months or so or once I have a fair amount of business under my belt I should consider LLC.

[cmM]

depends.
You need to considder the legal aspect, and the financial aspect.
Legally speaking, a SP doesn't protect you at all (you do however have the option of getting liability insurance for your business), while LLC's provide *some* protection (they could still go after your personal assets). You can also considder incporporating (an "S" corp, for example). A corporation can protect you legally, and with enough income you could save a lot in taxes.

Talk to a lawyer before you go too far.

[jfrancho]

If you can't afford a laywer and an accountant, don't bother since the business model needs to be able to support that, at a bare minimum. I don't know of very many small businesses that start in the black, anyway- both of mine have started with a loan.

[cmM]

If you can't afford a laywer and an accountant, don't bother since the business model needs to be able to support that, at a bare minimum. I don't know of very many small businesses that start in the black, anyway- both of mine have started with a loan.

The overhead of a wedding photography business is relatively low (generally). Many just use their savings etc..., including myself.

[jfrancho]

The overhead of a wedding photography business is relatively low (generally). Many just use their savings etc..., including myself.The OP indicated that (s)he had no savings.

[cmM]

The OP indicated that (s)he had no savings.

Yup, you're right. My mistake :oops:

[jfrancho]

I get what you mean, though. I started an aquarium installation and maintenance company, on next to nothing - each new client was literally 'paying' for a new piece of crucial equipment. Luckily, I had some really great customers in the beginning.

[rklepper]

Starting any kind of a business requires careful planning and some funding for the business. If you do not have the money, I personally would wait until I did. Down the road you are going lies disaster.