Vashthestampede

iTrader: (17)

Well see, that's how its been for me the past couple years. I figured I already had my fun and I better get legit quick.

Originally I was planning on going DBA, but both tax advisors AND legal advisors said it wouldn't be best for what I do.

I guess you can say I'm half service and half online sales. I buy/sell on a commission. Anything from 1 unique item to a house full of ----. So I have customers via eBay, but I also have customers in person. One customer pays me, while I pay the other. Meanwhile, taking my cut before I pay anyone.

Its a good business so far. I cant get cheated out of money (well, almost) and I have more ---- lined up to sell than I know what to do with. What I really need is an employee or two, but in order to do that I need to have a business in place.

If all goes well I hope to eventually have an actual retail location, but I'm talking years down the road. Right now I'm more of a drop off or pick up service. You cant necessarily "shop" my store unless online. Mainly due to the fact that 90% of my items aren't in my possession until the sale takes place.

Everything is still in the works and I'm still not 100% decided on LLC, but at this point in time it looks to be the best way for me to go.

Faeflora

iTrader: (2)

Oh, your ebay business. I would just do sole proprietership. You can write off all your expenses on a schedule C and it will be fine. You also do not have employees and your liabilities are minimal.




This is stupid. Many very large and successful corporations are LLCs or LLPs.



Yes you don't need legalzoom.

Starting a LLC. So easy a caveman could do it.


You definitely don't need a corporation for your ebay business. As I said, just sole proprieter it and sched C. Sched C is a valid and useful tax shelter. You can still get biznass insurance as a Sched C too. Get an umbrella also.

And some frikken health insurance you redneck

Faeflora

iTrader: (2)

What were the reasons your tax / legal advisors gave you for LLC'ing or incorporating????

Vashthestampede

iTrader: (17)

Hmm. I'll have to discuss it further with the legalzoom folks to have a better understanding about it.

So far, I've been most recommended to go LLC.

I'll be the first to admit I still have a lot to learn, but for now I'm just getting the ball rolling in the right direction. I'm not in a huge hurry to have it all finalized, but the sooner the better.

Legalzoom isn't necessary to setup the business, but if its going to save me the running around bs then its worth it for me. This way I can keep working on the business itself.

Yeah I need that health insurance man. I'm a pretty volatile person at times, so I never know when I'll ------- break my hands again. lol

I'm hoping setting up the business will force me to finally get some.

Vashthestampede

iTrader: (17)

They both rattled off dozens of reasons in conversation, but these are the couple main reasons that stood out to me personally.

LLC keeps my assets separate from the business. Say I sell an old family heirloom that some 2nd cousin comes looking for months after its been sold.

If profitable, later down the road I can switch over to a s-corp. Cant if dba.

DBA is taxed the highest and also has the highest audit rate.

Faeflora

iTrader: (2)

Not aure where they got thos audit rate figures from.

That lawsuit scenario is bogus becus as an officer of the orporation your *** and assets are still on the line.

Thats why i said get biznasty insurance. And alo an umbrella policy.

Faeflora

iTrader: (2)

Also do a revenue projection.

It is unlikely that you will sell the business ever.

Vashthestampede

iTrader: (17)

I take it this is how you are setup? Sole prop with business insurance for liability?

Tell me more.

I'm always looking to learn everything I can, so speakith from experience and learn me something.

Trust me. I'd RATHER go DBA over LLC, just because it seems like it'll be easier and cheaper to setup. Everything helps, especially right now. I just want to make sure I'm benefiting from it all in the end.

For every 10 people you talk to you get 10 different opinions. lol

Scrappy Jack

iTrader: (2)

Many people will tell you to skip Sole Prop because of the personal liability, particularly if there is any risk involved with the business at all. However, if you can off-load that risk to the insurance company, it may be a good fit. The challenge there becomes making sure you have the right kind and enough insurance and that the provider of the guarantee is around when you need to use it.

IcantDo55

iTrader: (11)

I did my franchise as a Sole prop because of just that, as a franchise group we have the power to negotiate a good insurance rate.

Faeflora

iTrader: (2)

Llc is also a big pain in the ***.

Just get a seperate business card for all your "business expenses" and half your accountig is done.