LLC or Corporation

[The Bing]

I'm ready to make the business legit!

Now I am scratching my head trying to determine if I should file as an LLC or a Corporation?

From your experience would you recommend one or the other?

I have a few wedding booked this year and I want to make sure I don't have any issues with Uncle Sam later on.

Any help would be greatly appreciated!

Thanks,

[sk66]

Why do either? For a small business Sole Proprietorship has advantages....You're not protected from liability, but there's not much liability risk in photography.

[kirbinster]

"Why do either? For a small business Sole Proprietorship has advantages....You're not protected from liability, but there's not much liability risk in photography. "
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I disagree with this 1000% - there is liability in anything today and to risk your home because you wanted to be cheap is just plain stupid. As for LLC versus S-Corp there are unique issues to each and no one size fits all answer. You should consult a tax accountant in your area that can look at your unique situation and tell you which one makes more sense for you. I have an LLC and an S-Corp for different non-photo businesses and there are reasons why each business has each form.

[sk66]

Well, I've been "risking my home" for well over a decade....

It's not a matter of "being cheap". It's what suits me and business best with the most tax advantage for my situation. I'm ok with a little risk.

[wannabephotographer]

Just get an umbrella policy with a large personal liability. Cheaper and less of a hassle. LLC's liability protection can be pierced.

[The Bing]

Originally Posted by wannabephotographer

Just get an umbrella policy with a large personal liability. Cheaper and less of a hassle. LLC's liability protection can be pierced.

So your recommending a Sole Prop with a big insurance policy?

Thanks for all the responses!

[sk66]

I *think* liability ins starts at 1million in coverage for a business policy. That was where it started at with my ins company anyways...

[wannabephotographer]

Originally Posted by The Bing

So your recommending a Sole Prop with a big insurance policy?

Thanks for all the responses!

yes it will cover you for accidents but not business related problems. So you may have to assume those risks.

[The Bing]

Why are taxes soooooo complicated?

[kirbinster]

Just because one has been lucky does not mean it is smart to not be protected via an LLC or Corp wrapper. The best advice you will get here is to not listen to people here - consult and expert - an accountant or lawyer.