what should i register as?

what should i register my business as? llc has to be partners no? and inc is expensive i have heard. i live in new jersey if this helps. thank you

I'm in Jersey and looking for the same answers. Good luck!!

Plenty of info here - SBA

Sole Proprietorship is what I chose.. as a small business registration

If you're just starting out in business, just stick with a sole proprietorship. It's as easy as registering your business name with the county and putting a sign over your door - or on your website as the case may be.

LLC's and Corporations are for multiple owners, those with lots of money to protect (or burn) or for when you're making a lot of money with your business and you want to cut back on taxes. In the meantime, don't worry about it. Keep your expenses low and stick with a sole prop. When you have more money to burn, talk to your lawyer and your accountant about your options.

John

I am an electrical contractor, I am a sole proprietor and as such have no employees, but I am an LLC. I live and work in New Jersey. All it means is that I have limited liability. The business can be sued but not me so my home is protected and the wife can sleep soundly. Hope this helps.

SidinUSA wrote in post #5164773
I am an electrical contractor, I am a sole proprietor and as such have no employees, but I am an LLC. I live and work in New Jersey. All it means is that I have limited liability. The business can be sued but not me so my home is protected and the wife can sleep soundly. Hope this helps.

That's always what i've been told. Mainly to keep your personal belongings safe in an event of a law suit.

You don't need partners to be an LLC. In CT you have to pay a $250 a year Business Entity tax and I think that most states have some type of annual fee/tax. Even if you are an LLC, your personal assets can still be attacked in the event of a law suit. Make sure that even if you are alone that you have a printed business plan along with documentation of decisions you have made. The legal term for getting at your personal assets is called "piercing the veil" and attorneys will use it.

But you still have an advantage being a LLC or Corporation over a sole proprietor. While a sole Proprietorship, your assets are 'free to the wind' so to speak. At least with a LLC/Corp, they have to pierce the veil, but that doesn't mean they are always successful. Having that extra layer can be a blessing.

sfaust wrote in post #5392594
But you still have an advantage being a LLC or Corporation over a sole proprietor. While a sole Proprietorship, your assets are 'free to the wind' so to speak. At least with a LLC/Corp, they have to pierce the veil, but that doesn't mean they are always successful. Having that extra layer can be a blessing.

I agree but some people think that it provides unlimited protection. If you don't treat your business as a real business with detaild record keeping, you don't have as much protection.

I'm no expert but I'm thinking most people (in any business) have a limited liability on all their contracts (i.e. max we will pay in case of an issue is a full refund of the price the client paid us).

Of course that won't stop them from going for other things I would assume in extreme cases (emotional damage, etc.)
I do feel that a statement like that in a contract would be beneficial to the business owner.

The way I look at it even with LLC it is really a bit of a false assurance.
While your personal assets are protected in most cases, a client can still come after your whole business!!!

In the end it seems that even with LLC you have to be specific in what kind of liability protection you offer on paid services.