I am a sole proprietor and I am looking at incorporating. I own a small landscape business and operate currently from my home. Which is the route you suggest?

Asked on 4/10/2009 by
Answered by

Dear Jeremy,

Many sole proprietors find incorporation beneficial to running a business.  It can not only provide significant tax benefits, but also shield your personal assets from business-related liabilities. When incorporating your home business, there are three structures to choose from: the S corporation, the C corporation, and the limited liability corporation (LLC).  Lynn Celmer’s recent article Three Little Letters That Can Protect Your Businessprovides additional information.Once you have an overview of the general benefits, you may want to consult an accountant and/or an attorney to help you select the structure that’s right for your business and your individual needs, especially since your home business is subject to additional tax rules and IRS scrutiny.  ABC partner BizFilings provides a wealth of information as well as incorporation services.

Guidelines

• You must be signed in as an ABC member to ask a question.
• Don't close the window yet! It's free to become a member!
• Be polite, use common sense and don't use profanity or offensive language.
• We cannot guarantee that your question will be answered. Whether questions are answered is soley at the discretion of ABC.
• ABC reserve the right to remove, modify or morve questions and comments at our discretion and without explaination.