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what kind of business do I want for a consulting job LLC or?

Posted on 2014-10-17
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Last Modified: 2014-10-31
I am signing a contract with a company in where I will provide technical services to their customer  .they want to do a Corp toCorp and I know NOTHING about this kind of stuff . I need to do this in a hurry . who would you recomend to help with this and what kind of company would I want to start LLC , S corp or what

I will be reading more about this and will be more educated in a few hours , but just wanted to see if I can get some input from EE


THANKS!!!!!!!!!
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Question by:NAMEWITHELD12
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7 Comments
 
LVL 13

Assisted Solution

by:notacomputergeek
notacomputergeek earned 336 total points
ID: 40387389
In most instances, a sole-member (you) LLC will be fine. Your Secretary of State website should be able to assist with paperwork that needs to be filed.
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LVL 12

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by:DarinTCH
DarinTCH earned 1000 total points
ID: 40387393
Or an s-Corp
I found the scorpion easier to setup ... less liability....
Llc is fine but probably more suited towards physical contracting carpentry or such
S Corp was easy to do whole thing online including registering business name for less than $100
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LVL 1

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by:NAMEWITHELD12
ID: 40387399
what vendor do you recommend ? I am looking at the SCORPion now !!!!!!

thanks so much !!!
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LVL 14

Assisted Solution

by:Don Thomson
Don Thomson earned 664 total points
ID: 40387474
There are advantages to an S-corp (i.e. don't pay federal taxes)  and some negatives in California - (Minimum $800  per year Franchise fee)

If you are the sole owner/shareholder - Setting up the S-corp is quicker with less paperwork

See http://www.sba.gov/blogs/should-my-company-be-llc-s-corp-or-both

I would check with a lawyer  and with your Insurance broker (you will need to buy Liability  Insurance and they may have better rates for one type of corp over the other


Here is a Wizard to help you http://www.bizfilings.com/wizard.aspx
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LVL 12

Accepted Solution

by:
DarinTCH earned 1000 total points
ID: 40387905
i have used several companies - none stood out as awesome
most times just looking for low price
should be like $75 or less for company registration and name
done it many times over the past few years - helped others
can easily save yourself the $500-$1000 the lawyer wants

and if your doing consulting IT contracting - try to skip the insurance piece (state it in contract) or at worst have the company handle the insurance or liability...especially if they know you - its not a big deal
you don't want liability of taking down their network....lol

also some variables depending on state.....which state you in?
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LVL 14

Assisted Solution

by:Don Thomson
Don Thomson earned 664 total points
ID: 40388743
The Author is in California

The whole idea of a limited liability company is to isolate the shareholders and directors from legal liability.

While it is not necessary to get Liability Insurance, you will look much more professional to prospective clients if you do.

Most Liability policies cover much more than you think.  The cost for a company for this insurance should range from about $450-$900 per year.  

If you are subcontracting  to another business - most firms that contract our to sub-contractors will either insist on it or will agree to include the costs you incur in the price that they agree to pay you.
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LVL 12

Assisted Solution

by:DarinTCH
DarinTCH earned 1000 total points
ID: 40389286
so check your states laws...
an Scorp may have to pay extra state taxes...but not self employment taxes
many similarities but
there are a few key differences

http://www.inc.com/guides/201103/s-corp-vs-llc.html
and
http://www.inc.com/guides/201103/s-corp-vs-llc.html
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