Re: Sole Proprietor to LLC, EIN and paperwork concerns

It is usually wise to run a business as a separate entity such as an LLC, to limit your personal liability. There are several things you will need to do to get it off the ground, none of them difficult. You have to file papers with the probate judge and with the sec of state in Mont'y. You need to get a business license also. If you need info on how to proceed, contact my office at 205 - 322 - 3747. This can all be done by mail if you aren't convenient to where I am in Bhm.

Thanks!

Bobby Lott

Re: Sole Proprietor to LLC, EIN and paperwork concerns

Well, the decision to incorporate and which entity to choose can be a complex one. Some business activities are inherently more risky than others, liability-wise. You should have an understanding of the tax implications as well, before forming a corporation. An LLC is a relatively new entity and there has not yet been a lot of case law regarding these types of entities. Basically, the organization of an LLC is similar to a partnership. The big benefit to incorporating is the legal shell that is created. If the corporation is valid and legal, any all debts and acts of the company solely belong to the company and not a principle such as yourself, so long as nothing is done which could result in the corporate veil being pierced. The forms that need to be completed and filed to properly form a business entity are not overly complex and you can do it on your own, with a little bit of research. However, if the potential exists to bring other people or partners into this venture and/or another entity will be a member of your company, you should probably get some legal advice prior to filing. Many attorneys will handle incorporations on a flat-rate fee basis. Good luck!