You will have better protection of your personal assets if you keep your business within an LLC. That said, there’s a cost to setting up and maintaining an LLC. The attorney whose advice I received indicated an LLC was a “no-brainer,” but when I considered the cost of set-up and the amount of at-home training I would be doing, it didn’t add up.
When I have more time to develop my training business, I will consider an LLC more seriously. It’s a separate legal entity, requiring its own tax return, a K-1, and then you include the K-1 income on your return. Pretty easy to do (I’m a CPA) but takes some effort.
Hello Susan Gallas,
Harris is right with his great advice. The advantage of SP is, if and when you decide to dissolve the business, there is nothing to do but basically walk away. Some sites may be of help also:
Of course, a lawyer can give the pros and cons of all the details for you to make an educated decision.
Good luck to you,
Natalie aka NAPS 2 B Fit.
I have always operated as an LLC. There are a lot of advantages having an LLC, not to mention less headaches from uncle Sam ;-)! Also, if I were you I would definitely check for park permits, etc. before offering any outdoor classes. You will need a liability insurance (if you don’t have one) and you will also need to add the park district or location where the class will be offered into your insurance. Consult with an attorney and a CPA to help you with this issue.
I hope this helps.