# LLC from the start?



## merryprankster (Jul 6, 2009)

Hello, I am from New Jersey. What is the most common and appropriate business structure for an online T-shirt company? Is an LLC absolutely required from the start? (from the looks of previous threads I would say 'yes') How about a Sole-proprietorship? And should I do all of this on businessnameusa.com or is there an other site you guys recommend? I am trying to get my resellers permit and business structure established by today. Thanks to any adivce in advance!


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## Solmu (Aug 15, 2005)

merryprankster said:


> Is an LLC absolutely required from the start?


Absolutely not. There are a variety of business structures that each have their benefits and weaknesses. Most small businesses just start out as a sole proprietorship as it is convenient. While you may ultimately choose to start as an LLC it is definitely not a _requirement_ for a successful t-shirt business.


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## fdsales (Jul 1, 2007)

Agree with the previous post, you can begin as a sole proprietor, but if and when you change, bear in mind it generally will affect your tax status, so make the change at the end of the year, so you don't have to pay extra to file 2 different types of tax returns. Also, changing to any type of corporation involves expense, and sometimes requires an attorney, so if you have the funds available now, I would just go ahead and setup as the LLC.
Also understand personal liability: As a sole proprietor, any mishap in your business can carry over as a personal liability, and cause you to lose your personal assets.
A LLC, or any type of corporation, creates a buffer between you & your personal assets, and your business, and it's assets. Your attorney can explain all this better.
Finally, make sure you have INSURANCE. If you work out of your house, and a business mishap causes damage to your home, or injuries someone, your homeowners insurance will NOT cover you, unless you had some type of additional business policy. If you're in a commercial or retail space, once again, your business is still liable for any damages created by a business mishap, and also personal injury to anyone in your shop.


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## Atakteo (Jul 8, 2009)

i started off the bat with a LLC, its less headache like explained in earlier post to make a transition from Sole P. to LLC.. 

and like fdsales explained, LLC creates the buffer between you and your personal assets and business assets.. in times like these, where law suites is on everyones mind i think an LLC is best bet, just my opinion.


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