ATOT business gurus: Sole proprietorship ?

[Q]

Hi ATOT,

I have been long considering creating a little side business to keep me occupied / hopefully gain a very small amount on income in addition to my career. I've put much thought into it, and decided I'd like to give it a shot. I believe sole proprietorship is the best course of action, since it's not a complicated business idea, and am not expecting anything beyond myself to handle the workload.

The jist is I plan on reselling one specific product to a large market. This product has only color variations, otherwise it is all the same. It's not expensive to purchase, store, ship, etc. It will be an online business. I can operate this easily out of my home on the side.

So, considering these facts, coupled with the knowledge that I'm not expecting to make millions on this idea (honestly just $100/month extra would be nice), is a sole proprietorship ideal?

Thanks all,
Q

 

[UglyCasanova]

Yes? No idea why you would need a partner.

 

[bbhaag]

I think for right now it would work just fine. If this side business ever grows and you decide to run with it switching to an llc or s corp maybe beneficial.

 

[yllus]

Unless you're taking on remarkable fiscal risk in your new enterprise, don't go through all of the trouble and paperwork of a corporation until you actually need it (and you'll know when you need it). Stay light and nimble, go with the sole proprietorship.

 

[Q]

I figured so, just using my personal SSN makes me a little nervous.

 

[ElFenix]

I AM NOT YOUR LAWYER PLEASE CONSULT ONE ON LEGAL MATTERS THIS IS JUST NEIGHBORLY ADVICE

Unless you're taking on remarkable fiscal risk in your new enterprise, don't go through all of the trouble and paperwork of a corporation until you actually need it (and you'll know when you need it). Stay light and nimble, go with the sole proprietorship.

i dunno what things are like up in canada, but down here in 'merica you can create various forms of limited liability entity in under 30 minutes (seriously, just go to the secretary of state's website, fill out a pdf form online, pay your fee, and it's done). and then you can just do pass through taxes for easy tax filing.



I AM NOT YOUR LAWYER PLEASE CONSULT ONE ON LEGAL MATTERS THIS IS JUST NEIGHBORLY ADVICE

 

[Q]

You're right Fenix, as far as I can see, I only see one form needed for an LLC. I just am not sure on Registered Agent; I'll probably just put myself for now as this my business plan is literally just reselling one item.

 

[sdifox]

make it incorporated with you as the sole director.

 

[Ruptga]

Another vote for LLC. It is pretty easy and it shields you from liability.

 

[RossMAN]

LLC

 

[yllus]

i dunno what things are like up in canada, but down here in 'merica you can create various forms of limited liability entity in under 30 minutes (seriously, just go to the secretary of state's website, fill out a pdf form online, pay your fee, and it's done). and then you can just do pass through taxes for easy tax filing.

It's about that easy to set up a sole proprietorship up here as well, but as far as I'm aware the business organization type you guys call an LLC doesn't exist at all up here. You have to jump straight into a corporation; amongst the increased burden is getting that set up, you also have to file taxes monthly (instead of annually if you went solo). It's not back breaking work we're talking about, but it's out of proportion for a potentially $100/month increase in income.

All that said, you might as well disregard my statements in this thread completely as they're tainted by me living in a different legal environment altogether.

I AM NOT YOUR LAWYER PLEASE CONSULT ONE ON LEGAL MATTERS THIS IS JUST NEIGHBORLY ADVICE

Haha, I wonder if anyone has actually sued a dude who gave him lawyerly advice online.

 

[Mixolydian]

I'm not a business guru by any means, but I would NEVER have a sole-proprietorship. You are held personally liable for your business. So if your business gets sued or something, they could go after your personal assets.

LLC seems like a no-brainer to me. Fairly easy to set up, minimal liability (as its name implies).

 

[maziwanka]

I'm not a business guru by any means, but I would NEVER have a sole-proprietorship. You are held personally liable for your business. So if your business gets sued or something, they could go after your personal assets.

LLC seems like a no-brainer to me. Fairly easy to set up, minimal liability (as its name implies).

this.

 

[ViviTheMage]

What mixolydian said ... go at LEAST LLC ... I went with s corp, but there's 2 of us + 2 employee's.

 

[Maximus96]

in California at least, there is a minimum $800 fee to start a LLC, in addition to other filing fees...that might be something to consider for a one-person, weekend-job type of business...

 

[Imp]

It's about that easy to set up a sole proprietorship up here as well, but as far as I'm aware the business organization type you guys call an LLC doesn't exist at all up here. You have to jump straight into a corporation; amongst the increased burden is getting that set up, you also have to file taxes monthly (instead of annually if you went solo). It's not back breaking work we're talking about, but it's out of proportion for a potentially $100/month increase in income.

All that said, you might as well disregard my statements in this thread completely as they're tainted by me living in a different legal environment altogether.

Haha, I wonder if anyone has actually sued a dude who gave him lawyerly advice online.

Mother effer... I was looking into starting a corporation to put my side businesses under, but the corporation (Canada) stuff seems like too much a hassle.

 

[highland145]

I'm not a business guru by any means, but I would NEVER have a sole-proprietorship. You are held personally liable for your business. So if your business gets sued or something, they could go after your personal assets.

LLC seems like a no-brainer to me. Fairly easy to set up, minimal liability (as its name implies).

Yeah but he's talking $100/month income, online. Can't see a big litigious problem. Just increase your personal liability insurance. IIRC, $1M umbrella cost me $300/year. $1K/month income then yes, CYA.

 

[Murloc]

I don't know about canada but creating an LLC requires to put like 20k$ into company capital here, at least your ass is not on the line but it's still quite some money.

Also 100$/month is not worth more than 0.5-4 hours/month of your time.