How to start a one man bussiness

[satpak77]

talk to both a knowledgeable aviation attorney and business law attorney, in your HOME STATE, before you do this.

If you want to do it right, consider the above people necessary members of your "team", even tho you are a one-man show.

 

[dhc8fo]

The S corp seems to be the way to go in a situation like this. I am just learning all of this stuff myself as I am kind of doing the same thing. As far as liability goes, yes, anyone can sue for anything, but if you create these seperate entities it makes it harder to attach you to your posessions (we have been instructed to create an LLC organized as an S corp). What we have done is to either own everything jointly (which no one can take items that belong to someone who isn't you) or to put things into the spouses's name who isn't in the corp. At least if you get sued all you will lose is what is in your business (which isn't too much in a business like this).

 

[satpak77]

talk to both a knowledgeable aviation attorney and business law attorney, in your HOME STATE, before you do this.

If you want to do it right, consider the above people necessary members of your "team", even tho you are a one-man show.

again, do the above

 

[midlifeflyer]

The S corp seems to be the way to go in a situation like this. I am just learning all of this stuff myself as I am kind of doing the same thing. As far as liability goes, yes, anyone can sue for anything, but if you create these separate entities it makes it harder to attach you to your possessions

No it does =not= make it any more difficult to attach your possessions in the type of situation Rusty is talking about - piloting services in which he's concerned about liability in case of an accident. As I said, the way liability protection works is "probably one of the most misunderstood concepts of business law."

Rusty has two types of potential liability to his customers:

1. He agrees to deliver the goods of people and doesn't deliver them on time. That's contractual liability and setting up a corporation, LLC or other limited liability entity =will= personally protect him from that (so long as he doesn't mess up on his entity responsibilities).

2. He gets into an accident and injures his passengers or folks or property on the ground. That's personal tort responsibility and setting up a corporation, LLC, or other limited liability entity =will not= personally protect him from that. They are not designed to.

In situation No. 2, what the entity will protect him from is the actions of an employee or a "partner" (using the term loosely not legally). But never from his own actions.

we have been instructed to create an LLC organized as an S corp)

BTW, receheck your instructions. There's no such thing as "an LLC organized as an S corp"

 

[dhc8fo]

BTW, receheck your instructions. There's no such thing as "an LLC organized as an S corp"

ummm.....yes there is. An LLC can apply for S corp status. Which is exactly what we have done.

 

[midlifeflyer]

ummm.....yes there is. An LLC can apply for S corp status. Which is exactly what we have done.

I'd love to see =that= paperwork. An LLC is automatically treated as a partnership or sole proprietorship for tax purposes (which is how an S-corp is treated by choice). It's if you want an LLC to be treated like a C Corp that you "apply" for something. The only time you'd apply for an LLC to be treated like an S-corp is if, in the past you applied for it to be treated like a C-Corp.
.

 

[VAPOR]

Just make yourself an LLC. Call it whatever you want and do all your business as "Flying Widget, LLC."

Actually...Dibbs on that name.

I agree, doing business as an LLC protects your personal assets as long as you do not engage in criminal activity. And you don't have to file separate corporate income taxes, the LLC profit/loss flows into your personal tax return.

 

[Flyingdutchman]

http:// www . clear -a nd -a- mill io n.com/

 

[psysicx]

Do a search under HMR in the corporate board he was asking the same question.

 

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