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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: 2152
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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: 53
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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: 2152
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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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