# what to register my company as?



## tskid (May 28, 2008)

should i register my company as a sole proprietor, corporation, or LLC.


i live in new jersey and would mostly be selling my shirts online.


would a sole proprietor limit me to only doing business in NJ?


thanks for the help guys!


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## AECompany (May 11, 2008)

If I were you I would register your company as a sole proprietorship. You can later "upgrade" when or if your company grows.


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## COEDS (Oct 4, 2006)

If you are the only owner then you register as a sole proprietor. If you have a partner then you register that way. It does not matter where you do business as to how you register. There are tax advantages to being incorporated, but not until you grow to a certain size. ...... JB


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## WILLIEBTEES (Jun 1, 2008)

I would register as a LLC. I did. You can register as a sole proprietorship LLC. It's great for tax benefits. All your operating expenses minus profit is a tax write. As a LLC it also puts you at a 15% tax bracket vice a 28% which most people are (single). Go in incorporated. It doesn't hurt.


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## acrazyfool (May 17, 2008)

What was the cost of forming your LLC?


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## Girlzndollz (Oct 3, 2007)

Frank, here is a good thread with folks discussing this pros and cons of this exact subject. I've read this thread and it brings up very good and valid points all around on SP. 

Jessie, how much and how to register is also discussed in this thread. Online is cheaper. Please see the thread. 

http://www.t-shirtforums.com/business-finance/t28857.html#post169444


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## WILLIEBTEES (Jun 1, 2008)

I am based out of Florida. I paid $130.00 for the LLC on sunbiz.org. I also paid $50.00 for the fictious name.


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## WILLIEBTEES (Jun 1, 2008)

I am based out of Florida. I paid $130.00 for the LLC. And it's a tax write off for your corporation. Because once your corporated any of your operating expenses are written off towards your inc.


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## mr8500 (Jan 16, 2007)

Not to mention, if registering as an LLC it is a Limited Liability Corporation so if you were to get sued or file bankruptcy the only thing that they can go after is your companies assets and not your personal assets. Its kind of a safety net.


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## WILLIEBTEES (Jun 1, 2008)

That is true, when you incoprorate. Your LLC is it's own entity Also, all your corporation expenses minus you corporations profits is what's taxable


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## Girlzndollz (Oct 3, 2007)

Being a sole proprietor, business operating expenses are also written off. As far as not being sued, I was under the same impression... until it was explained to me another way. That info is in the link. PS: I am a SP. I decided to skip the LLC, bc I wouldn't get what I truly wanted, being a one person operation.

Also, the OP hasn't said which kind of corp.


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## TeddyRocky (Mar 23, 2007)

acrazyfool said:


> What was the cost of forming your LLC?


You can check your Secretary of State for the fees. Every state has different fees. Some states even have online filing.


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## WILLIEBTEES (Jun 1, 2008)

The main thing about a LLC that is better than a sole propreitoship. As a LLC it gives your more tax advantages which helps you get more of your money back than sole. When your incorprated. It puts you in 15% tax bracket vice sole. You don"t need to be partnered with two or three persons. There is a such thing as sole LLC. If your thinking big about your business, like I am. Then go LLC.


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## Girlzndollz (Oct 3, 2007)

tskid said:


> should i register my company as a sole proprietor, corporation, or LLC.
> 
> 
> i live in new jersey and would mostly be selling my shirts online.
> ...


As helpful as all of our advice is meant to be, if you really want to know and understand what set up is best for you, you need to find out from someone who can explain the pros and cons in your state. 

I was from Jersey, now live in PA. My brother in law is in Jersey and has his own biz, too, no employees. We compare notes, and doing biz in Jersey is different from doing biz in PA. Point is, it's not a one size fits all, and how you set up now will affect you for a long time.

If you really want to make an informed decision - I would suggest you contact your local Small Business Development Center.

I have worked with my local SBDC office for nearly two years now, and they have been an invaluable FREE resource. A wealth of information, cutting through tons of research and reading for me, eliminating the clutter and getting me right to the answers, so I can BE in business, rather than researching how to GET into business. 

It was a simple as making a doctor's appointment. You call, get an appointment, show up, and the advisor and you discuss Your Business. They don't leave you after you are set up either. They help you grow your business after you are set up. 

When I say help, I mean advice, contacts to resourcefull people for marketing, contacts for growing your biz, and they have access to alot of information regarding commerce and industry that they willing share with you to help expand your growth opportunities. 

I sat down with my advisor and he explained what each of the set ups were about, the pros/cons, how they applied to my exact business (not t-shirts, other biz).

This is your tax payer dollars at work, so you might as well get something out of your dollars. They are a free resource to small biz's. Everyone talks about how much everything costs, yet here is an invaluable resource that is free, just waiting to help you establish and grow your business. Here's the link if you are interested:
Small Business Administration - sbdc_locator_map


I would not advise you call an accountant too much, though they can be helpful. I found they tried to upsell me into higher set ups that cost more to establish because it was a better fee for them to collect. I came to trust and rely on the SBDC because they do not lie to me. There is no alterior motive. They are not being paid by me. They get their funding each year through the government, and they earn their funding by having a successful track record helping small biz's.

Okay, I'm done singing the praises of the SBDC, but with a white knight like that at my disposal, it's really hard to not shout it from the top of a mountain. They help with everything you need to know and do when setting up and growing a biz, yet no one seems to know they are there. So now you do.


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## StropsCC (May 30, 2008)

Hello I need some help and see you have knowledge on the situation. I am a new business (in the midst of purchasing all my equipment) to do a t-shirt line. Someone suggested to me I become Incorporated so I paid the $ and now I have an S corporation. The person that helped me helped me get that and then bailed, now I have unfinished paperwork and I dont even know where to go next. What are the requirenments to be/keep this incorporation status? Or should I get out of it. Really have no understanding of the situation. Im dumb in that aspect. "IM JUST AN ARTIST" Feel I got myself into something I do not understand. If you can shed some light on the situation that would be great. Thanks so much in advance...


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## Girlzndollz (Oct 3, 2007)

StropsCC said:


> Hello I need some help and see you have knowledge on the situation. I am a new business (in the midst of purchasing all my equipment) to do a t-shirt line. Someone suggested to me I become Incorporated so I paid the $ and now I have an S corporation. The person that helped me helped me get that and then bailed, now I have unfinished paperwork and I dont even know where to go next. What are the requirenments to be/keep this incorporation status? Or should I get out of it. Really have no understanding of the situation. Im dumb in that aspect. "IM JUST AN ARTIST" Feel I got myself into something I do not understand. If you can shed some light on the situation that would be great. Thanks so much in advance...


I don't know what state you are in, but since you are already set up as an S-corp, my advice would be to call a local accountant and ask what you need to do in your state. 

You can mostly likely also look this up on your state's business website. I would find and read that so you have some basic knowledge prior to calling the accountant. 

My second call would be to the SBDC to meet with someone who can advise you properly on if you want to remain an S-corp, and won't bail on you afterwards.


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## Girlzndollz (Oct 3, 2007)

This is a link to the SBA (small biz admin) on choosing a structure:
Small Business Administration

S-corp is discussed.


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## StropsCC (May 30, 2008)

Im in Cali, Thanks very stressed about the whole situation...


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## belleater (Jul 29, 2008)

Girlzndollz said:


> I was from Jersey, now live in PA. My brother in law is in Jersey and has his own biz, too, no employees. We compare notes, and doing biz in Jersey is different from doing biz in PA. Point is, it's not a one size fits all, and how you set up now will affect you for a long time.


My girlfriend and I are starting our own business as an llc no employees. Im from PA and my gf is from NJ, which state would you recommend establishing the business in?

thanks


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## Girlzndollz (Oct 3, 2007)

belleater said:


> My girlfriend and I are starting our own business as an llc no employees. Im from PA and my gf is from NJ, which state would you recommend establishing the business in?
> 
> thanks


I wish I could answer but I'm not in a position to be able to. You have a great chance to choose which state to set up shop in, so you should really find out the costs, benefits, fees, requirments, liabilities, tax burdens and anything else that is vital about each state and compare them side by side.

To find that info, I do have some suggestions for you:

*Research fees, requirements, tax rates, etc on PA's business website and NJ's Business Website.
*Better yet, contact your local Small Business Development Center. Your's in PA and your girlfriend's in NJ.
*Contact an accountant, hopefully someone who knows business in both states, otherwise, consult one in each state. 

No matter what you choose, I completely recommend a visit with your SBDC before you decide. 

The SBDC will know everything it takes to operate in your state, and you can then find out which state is the best one for you to set up in. 

Niether state charges sales tax on clothing, but for other items, NJ sales tax is 1% higher than PA. 

Here is a link to the locator tool for the SBDC. It is government funded (you paid tax dollars for this service) and a Free resource to you (not really - lol). But heck, it's "paid for" expert service that can truly answer your question with accuracy, and will cost you not a penny more than you paid into your taxes. 

Small Business Administration - sbdc_locator_map


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## Binary01 (Jun 2, 2007)

i'm a s-corp.... but that was when i was pursuing design/build and was hoping to have employees.... not sure if i should change it to an llc either........


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## DaisyK (Aug 29, 2008)

I'm s-corp too. For a sole proprietorships, you will risk your personal properity.


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## Girlzndollz (Oct 3, 2007)

I wanted LLC for the same reason = Protection. No one was more disappointed than me to find out in reality, it just may not be there. People who want to sue, will sue. If you are the only one in the company, it is easy to see you. It will mostly come down to the lawyers and the judge. I saved my money and went SP. I recently learned it is alot cheaper to form an LLC online. I might have still gone LLC if I had known that, but here at the lawyers office, they wanted a big chuck of change for it.


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