Hello Bob,
I wish I would've seen your post earlier. Perhaps I'm too late now,
but here's my two cents:
Creating the entity is relatively simple. Whether you choose an LLC
or otherwise, it is only a matter of inputing your information and
paying the fee. Then, remembering to keep up with the Annual Report.
However, before you file your new entity make sure you understand what
each option will mean to you. Remember, your choices aren't limited
to a corporation or an LLC. It is extremely important that you see the
big picture. By this I mean that you must consider all the reporting
associated with each choice and how that fits your situation. For
example, if you choose to register an LLC and there is only you (i.e.
a single member) then you will be considered a Disregarded Entity by
the IRS and your taxes will be filed pretty much the same way you've
been filing up to now. Now, if you have more than one member you may
considered a partnership unless you elect otherwise. Oh, and please be
sure that you file the S-Election separately if you choose to be an
Scorp. This is done separately with the IRS and not when you
incorporate with Sunbiz.
I recommend that you talk to your tax professional and figure out what
future will look like with each option. Take into consideration your
personal situation as well as that of your business. Also consider
how this will fit if you triple your revenues in the next two years.
Growth is very tough to manage and having a little foresight goes a
long way.
Also, think of the legal side. If this prospect is so adamant about
dealing strictly with a business entity, there may be reasons other
than the usual "I don't want you to pop up as a sub in my worker's
comp audit". Do your research, you may learn that you're more
vulnerable then you think.
There's no easy way to tackle this. But the absence of diligence now
will prove to be far more costly in the future. It is important to
establish relationships with professionals from the early stages. It
sounds like this is the best time for you to get at it.
Good luck,
Gilbert Moreno
Accountant
g.h.mor...@gmail.com
On Sep 18, 4:04 pm, Bob <bobh0...@comcast.net> wrote:
> Hi all,
> My first post here. I am an independent software developer in Boca
> Raton, FL. For the last few years, I have been working on my own. I
> have a few clients in the area. I am set-up as a sole proprietor.
> But now I have a very lucrative account but the client will not do
> business with me unless I am incorporated. This is not my area of
> expertise to say the least! So I did some research and it seems that
> I can set-up my company as a LLC.
> I also see there are a ton of web sites that will do this for you for
> a fee. But many of these sites look shady. Can anyone recommend some
> legitimate web sites that do this sort of thing? Also, what other
> things should I look out for as I incorporate?
> Thanks in advance!
> Bob
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