There is a LOT of stuff to factor in, so I would talk to an attorney or do some research. Additionally, you will want to look into the individual requirements of your state.
Personally, I went the LLC route, as it offers a higher degree of flexibility when it comes to taxes (Note: I’m a sole proprietor) and management.
I chose the LLC for my multi trainer business but maintain a sole proprietor status for my mobile training. Considering all the factors that are in play with relying on others to “Do the right thing”, the LLC watched my back by placing the onus of burden on the business instead of myself directly. Read into “Peircing the corporate veil” though. Even though an LLC is not a corporation, in some respects it is treated as one; and liability (especially willful neglect) is a doozy of a reason for YOU to be held directly responsible.
I have recently been tackling the same question. I have spent weeks doing research and have a mentor guiding me through the process. I would suggest you do the same. Although we think it is a simple, single process, it is actually multidimensional and requires a lot of advice and guidance to do it the right way. Re: llc I would definitely speak with a lawyer before you make a decision. GOOD LUCK and much success
Hi Tami. The best organization will be the one that fits your needs both from a business perspective, financial perspective and liability perspective. Over my 19-year training career, I have literally had all of the various business organizations (I started out as an S-corporation, then went to a C-corporation, and finally settling on an LLC). I think that each of us as trainers and business people have different needs and so spending an hour or so talking with an accountant and attorney before setting up your organization would be best in my opinion.
I hope that this helps.