Junior Burger
2012/12/18 08:47:43
Hey everybody im new to these forums and have been trying to start my hotdog cart operation for some time now it seems like every corner I turn thes anew road block. Ive been told i need to form a corporation it seems like an LLC. Is what I should form but i have no idea how to or if that is really what i need it seems very confusing. Did anyone else come across this problem, what do you guys suggest I do it seems mush easier to form a sole proprietorship but Im curious what other hotdog vendors did?
Junior Burger
Re:LLC.? 2012/12/18 10:04:46
An LLC is a good way to go because it protects your personal assets in the event that you get sued or something like that. However, a sole proprietorship is a much easier way to get started. Thats what I did and what im sure most of the others did. To start a sole proprietorship is free and easy and can be done over the internet where as starting an LLC usually requires an attorney. Id just stick with a sole pro. for now.

Double Chili Cheeseburger
Re:LLC.? 2012/12/18 10:44:39
An llc does not require an attorney, it is a very simple procedure, a one page form that can be filed online with the Secretary of State. Do some research.
I just looked for MA, a bit spendy at $500 vs the $200 in WA with $69 annual renewal.
Junior Burger
Re:LLC.? 2012/12/18 13:24:55
Yea i thought $500 was a little steep ill look more into it and see how difficult it is, but thanks alot theres a ton of good information on this site.
Double Cheeseburger
Re:LLC.? 2012/12/18 15:35:30
Go with the SP and have good insurance unless you have a lot of assets of public record.
Re:LLC.? 2012/12/18 20:14:27

Go with the SP and have good insurance unless you have a lot of assets of public record.

By the nature of my investments I have no choice other than to play that expensive game.
The $400 - $500 formation costs are just the beginning. 
For each of my Delaware "entities" there is an annual $250 "franchise tax" + $50 to my DE registered agent.  My CPA charges me $275 - $350 for each annual "corporate" return before they begin charging me personally for "bringing them all together".
jcheese is right:  a good "umbrella" policy is much cheaper.  And you life will be much simpler.
Re:LLC.? 2012/12/20 17:13:31
If you have an LLC the taxes are against your ss# - you don't have to pay the income tax a second time if you cut yourself a paycheck. Each state charges different for a business entity tax or not. For safety sake and that noone can touch my personal assets if sueing the business a LLC is the only way I go in business.
Re:LLC.? 2012/12/20 23:34:59
Every State is different.
A good CPA should be able to advise you as far as the tax side goes.
Lawyers will tell you you need one so they can collect a fee for setting one up for you.
And then there's always