I would like to know the opinions of all on this subject. Seems that there is much talk about the whole LLC thing and how it is riding a wave but I talked to an accountant about setting up my business and she talked more about a Sub-chapter S Corp.
I do realize that going that route is more expensive and more paperwork, but I have big dreams/plans. I am not going to be doing this for the short haul. So why not go for the gusto?! I also have people I know that started a business as an LLC and the business exploded beyond their expectations and they added employees and equipment to cover the expansion and in the end it was the actual taxes that killed the company. Yes, they probibally did expand too fast. The way she (the accountant) explained it (or at least how I understood it), as long as you plan to be a small (like family) company with limited employees making a modest profit, an LLC is fine, but if you want to be a larger company (and I plan to be a threat to Kraft someday!
), you should go Sub-S. Whichever one you pick, that is what you will forever be.
Secondly, I wanted to talk to a lawyer about this. I've herd all the warnings about finding one with food service industry experience and am paying attention. One of the questions I planned to ask was this one and if the food service industry had any special regs. that preferred any type of company setup. I know less than nothing, I want to have some idea of what he says so I at least know if he knows what he's talking about or he just blowing smoke.
More questions to follow...
I do realize that going that route is more expensive and more paperwork, but I have big dreams/plans. I am not going to be doing this for the short haul. So why not go for the gusto?! I also have people I know that started a business as an LLC and the business exploded beyond their expectations and they added employees and equipment to cover the expansion and in the end it was the actual taxes that killed the company. Yes, they probibally did expand too fast. The way she (the accountant) explained it (or at least how I understood it), as long as you plan to be a small (like family) company with limited employees making a modest profit, an LLC is fine, but if you want to be a larger company (and I plan to be a threat to Kraft someday!
), you should go Sub-S. Whichever one you pick, that is what you will forever be.Secondly, I wanted to talk to a lawyer about this. I've herd all the warnings about finding one with food service industry experience and am paying attention. One of the questions I planned to ask was this one and if the food service industry had any special regs. that preferred any type of company setup. I know less than nothing, I want to have some idea of what he says so I at least know if he knows what he's talking about or he just blowing smoke.
More questions to follow...
