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Butterfli
Member
Joined: 1 Sep 2009
Posts: 5
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# Posted: 4 Sep 2009 10:30
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Hi all, I'm in the middle of researching starting an at-home eBay business. Since it will just be me, which structure should I choose? I'm reading up on both now, but not very good with all the tax jargon. Also, which one would be cheaper to set up?
Thanks!
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Matt Zenittini
Member
Joined: 16 Jan 2009
Posts: 171
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# Posted: 4 Sep 2009 12:18
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They are both very similar.
S-corp will offer your personal assets protection.
LLC can be used where you don't need the extra protection.
I would go s-corp for eBay but it's up to you =].
Matt
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Newbie Shield
Joined: 22 Sep 2007
Posts: 2232
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# Posted: 4 Sep 2009 15:25
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Hi Butterfli,
That entirely depends upon the details of your immediate needs as well as with your future needs.
If you won't be hiring employees, another good option is to set up a sole proprietorship and - if truly needed - purchase liability insurance.
That way you can easily pay yourself, save money on the structure setup, and keep it simple.
I think that you are approaching it the right way by reading up on it yourself. You should also talk to a tax attorney or a CPA who knows about the differences between entity structures.
~Newbie Shield~
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countrygirl
Member
Joined: 26 May 2009
Posts: 31
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# Posted: 5 Sep 2009 10:02
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You really don't need either one, unless you just want to sound more professional. Like Newbie Shield said...a sole proprietorship is all you need & it doesn't cost anything to set up & is very simple. Best of luck to you!
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TyBrown
Member
Joined: 23 Jul 2009
Posts: 56
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# Posted: 5 Sep 2009 11:04
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I've got some of both for my various businesses. Even though I have them, though, I'm not smart enough to recommend one over the other. Probably should go talk with an accountant or an attorney for a half hour.
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Newbie Shield
Joined: 22 Sep 2007
Posts: 2232
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# Posted: 5 Sep 2009 11:12
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countrygirl: ...a sole proprietorship...it doesn't cost anything to set up...
It only costs around $30 or $40 to set up the entity plus an additional $45 or so to post it in a qualified biz classified section in order to give local residents a chance to challenge the use of a specific entity name (in case it's already being used or has already been reserved).
Even so, it's still cheaper to set up and to maintain than either an LLC or a Corporation.
~Newbie Shield~
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countrygirl
Member
Joined: 26 May 2009
Posts: 31
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# Posted: 5 Sep 2009 11:46
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This is true Newbie Shield, but I was referring to just using your personal name, filing schedule C on your tax return, and not using an entity name. This way it costs nothing. I really don't see the need to have a entity name for selling on Ebay. Just my opinion.
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Dgitalnomad
Member
Joined: 13 Oct 2009
Posts: 34
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# Posted: 15 Oct 2009 22:43
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My advice would be not to rely on forums for legal advice.
However, just to throw in my two cents...I like the way you can easily set up an LLC.
I have had all of the above at one time or another, and the LLC has advantages over all the others in my opinion.
Also, some of the information in this thread is inaccurate, or downright wrong as far as the advantages and disadvantages for the various entities mentioned.
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FreeCashMan
Member
Joined: 31 Dec 2007
Posts: 266
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# Posted: 16 Oct 2009 00:01
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Whatever you do, dump the sole proprietor ideal. In really it you are just doing business in your name with a pseudo name.
LLC , or limited partnerships are the idea way to go for small home businesses, and even larger massive companies are operating under LLC's. You can get all the protection you need without the corporation hassles with an LLC.
There are many other structure related things for assets protection that wouldn't fit this thread or forum but I would encourage all to operate under an LLC and not their personal name or similar.
Get your business tax id, your business bank account, and be about doing your business.
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Dgitalnomad
Member
Joined: 13 Oct 2009
Posts: 34
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# Posted: 16 Oct 2009 22:32
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FreeCashMan has the right idea. It is hard to argue against the LLC.
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