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Starting a part time consulting business?


I am in the process of starting a part-time IT Consulting business, as a side business to augment my full time employment as a Software Engineer. In the near future I do not see having any employees, but who knows. If the consulting business takes off anything is possible.

My question is should I initially file for my business licenses as a sole proprietor, corporation, or would it be advantageous to file as a LLC. I would say filing as a corporation would be a stretch. Also, what are the advantages/disadvantages to these structures?

heart_and_troll,
If you are starting/forming a corporation in the state/city in which I live you still have to file for a business license.

RM

IF THE BUSINESS HAS YOUR NAME IN IT, SOLE PROPRIETOR IS THE ONLY WAY TO GO. IT SIMPLIFIES YOUR INSURANCE AND TAXES.

ALSO: THERE ARE NO ADVANTAGES TO INCORPORATE YOUR COMPANY......BECAUSE YOU WILL BE SOLELY RESPONSIBLE ANYWAY.

YOU MAY WANT TO REGISTER YOUR COMPANY NAME WITH THE LOCAL COUNTY OFFICE, ($5 filling fee, $3 notary fee) IF THE COMPANY NAME DOESN'T HAVE YOUR NAME IN IT.
THERE ARE 2 ADVANTAGES TO FILLING A "DBA" OR "DOING BUSINESS AS" FORM.

1) THIS PROTECTS THE NAME FOR 10 YEARS AND NO ONE ELSE CAN USE IT. ON THAT FORM IT WILL INDICATE A BOX "SOLE PROPRIETOR".

2) YOUR BANK WILL REQUIRE ONE TO OPEN UP A CHECKING ACCOUNT IN THAT NAME IF OTHER THAN IN YOUR PERSONAL NAME.

A "LLC" REALLY ADDS NO ADVANTAGES TO YOU AT THIS TIME.

ITS THE "KISS" PRINCIPAL "KEEP IT SIMPLE......"
AND CONTROLS COST....AND FILLING OUT ENDLESS FORMS IN THE MAIL.....

ITS GREAT THAT YOU ARE GETTING YOUR FEET WET AND .....GET OUTTA THE JOB THING!

NOW GET GOING.........".I.T. GUY" , WE NEED GOOD GUYS OUT THERE DOING WHAT YOUR DOING.

You need to see a business lawyer in your area, because you clearly do not have a good understanding of these things. E.g., you don't "file a business licenses as a corp." etc. Why would a corp. be a stretch but an LLC not? The answer to your question is, it depends. On many factors, most of which are not mentioned in your posting.

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