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Apr 29, 2009 
A reader Anthony asked a couple of good questions yesterday…
I know [that I need to start a business to protect my personal assets] and still have not acted. Should I form an LLC for now? I’ve read that that is the way to go for someone in my current position. I’d like your feedback on who should form an LLC and when.
I personally would probably start an S Corp and keep it legal as I describe in Cover Your Assets which you have already purchased and received. (Unless you are primarily in real estate or plan to use a lot of outside capital to run the business). You should of course consult a lawyer if you are in any way unsure of what to do. I don’t know the details of your situation.
An LLC is not as established of a business form and I think that the legal history of the corporation is of great value. The records you need to keep are not a big deal, you just need to carve out a few hours a year total to do them.. And it is good thinking exercise to go through the thought process the records require. And keep your personal and business finances 100% separated.
For a more in-depth description of the differences: How to Pay the Lowest Amount of Taxes… part 2 [Payroll Taxes]
A second question…
For another business, I went to LegalZoom to get everything set up. Any thoughts on using them vs a local?
I have heard good things about LegalZoom’s ability to process your papers. But they can’t tell you what your best course of action is if you have specific concerns. If you are confident in what you are doing then LegalZoom can handle the paperwork for you, or you can easily do it yourself in most states and save $100-200 in the process. And LegalZoom will not help you to keep your corporate records ship-shape so it is a good thing you have Cover Your Assets…
Hope this helps…
Rob
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• Apr 29, 2009 @10:00 am
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