Windshield Repair Forum

I am wondering if the business structure of Sole Proprietor with sufficient insurance is as good as a LLC. I am looking at the benefits of each, i.e. the LLC becomes "Public Record" while the Sole Proprietor is not. I would like advise from those 1 man operations out there as to which they have chosen.

I am incorperated(I believe it's the Canadian equivelent to an LLC) the benifits are great and the down points are the initial cost, and the filing of a complicated tax return. The benefits include personal protection in the case of business failure or liability law-suit, lower income tax on profits, better deductions and more loop-holes.

Merci

Yvan,

Here, in the good old USA, the same "protections" are afforded with LLC's, Sub S's and "Full-Blown" Corporations. As well, the same requirements for Articles of Incorporation, Share Distribution, Board Meetings (with minutes), etc ....

However.....

Here, in the US (at least in the States that I have resided in), if you ever have to go to court and a judge determines that you were not truly "acting" like a corporation in all manners of business, the judge has the authority to retroactively disband your "corporation" and any penalties/damages could be applied as if you were a sole-proprietership/partnership.

Personally, the best advice I can offer, is to consult with a good tax attorney and he/she would be able to advise as to the best approach for your specific situation.

I have an s-corp.. I agree with DaveC, consult an attorney it is money well spent.

Just wanted to add when I set up as an s-corp it wasn't a one man operation.

When I was setting up a non-WSR business a couple years ago I was told the *only* way to go was LLC because of the protection it afforded from the separation of the corporate and personal assets in the event there were legal or negative financial issues. There term for it is the "corporate veil."

However, after forming an LLC my accountant told me a single-member LLC is treated exactly like a sole-proprietorship in almost all respects and that if there is any crossover between the corporate assets and personal assets (shared bank accounts, improper record keeping, writing checks across accounts, etc.) the "corporate veil" no longer applied and I personally could be held liable just as I would in a sole-proprietorship.

This is just what I've been told, I don't know if any of it is fact. Talk to your accountant, lawyer or business advisor to know for sure what the benefits will be with your circumstances.

I'm a S.P.

I too am a sole proprietor...my attorney says that I do not have to charge sale taxes in the state of Texas as a SP.

Sole proprietor with general liability insurance which is probably better than most other self employed situations out in the work place.