Daycare.com Forum Daycare Forum

Go Back   Daycare.com Forum > Main Category > Daycare Center and Family Home Forum

Daycare Center and Family Home Forum Daycare Center and Family Home owners, Directors, Operators and Assistants should post and ask questions here.

Reply
 
Thread Tools Display Modes
  #1  
Old 01-21-2011, 05:23 PM
Sprouts's Avatar
Sprouts Sprouts is offline
Licensed Provider
 
Join Date: Dec 2010
Location: New York
Posts: 801
Question LLC vs INC? or Doing Business As???

Has anyone here started an LLC before they opened their day care??
Confused between starting an LLC or a Corp or if its even necesarry at all??

I am getting my articles of organization ready now using the "LLC and Corporation Start up Guide"...and then plan on hiring a attorney afterwards (save some $).....but trying to avoid unnesesarry expenses when tax season comes around....hopefully anyone here or Tom... =) has had experience with this and can give some much appreciated advice!! =)
Reply With Quote
  #2  
Old 01-21-2011, 06:52 PM
TomCopeland's Avatar
TomCopeland TomCopeland is offline
Business Author/Trainer
 
Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 3,060
Default Llc

The decision of whether or not to incorporate your business is a complex one. I strongly recommend that you consult with an attorney and a tax professional who both understand family child care. I've written about this at length in my book Family Child Care Legal & Insurance Guide.

In general, I'm opposed to providers incorporating. The primary reason for doing so is to reduce personal liability. However, this is not simple. I believe that purchasing a lot of business liability insurance is the best way to go. Although it may be true that you could get some more liability protection by incorporating, it comes with a price. If you set up a C or S corporation you will lose all home deductions (property tax, mortgage interest, utilities, house insurance, house repairs, home depreciation) for your business. Also, there are additional record keeping requirements as a corporation and additional costs (filing fees, annual fees, tax preparation fees).

There's a lot more to consider. I urge you to seek professional help before you take this step.
__________________
__________________
http://www.tomcopelandblog.com
Reply With Quote
  #3  
Old 01-22-2011, 05:40 PM
Sprouts's Avatar
Sprouts Sprouts is offline
Licensed Provider
 
Join Date: Dec 2010
Location: New York
Posts: 801
Default

Thank you for your response! I will go and re-check the book now.
Reply With Quote
Reply

Tags
llc corp attorney

Thread Tools
Display Modes

Posting Rules
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Exclusive Business Use SilverSabre25 Daycare and Taxes 6 02-09-2017 10:16 AM
Facebook For Just Your Business Country Kids Daycare Center and Family Home Forum 8 09-10-2012 04:22 PM
Business Checking Account? Kim Daycare and Taxes 3 06-10-2012 05:03 PM
Taxes: Time/Space vs % of Business Use legomom922 Daycare and Taxes 4 09-21-2010 04:22 AM
Business Cards for Promotion MirabDesigns Daycare Center and Family Home Forum 0 08-12-2010 07:29 AM


All times are GMT -7. The time now is 04:15 AM.



Daycare.com         Find A Daycare         List Your Daycare         Toys & Products                 About Us

Daycare.com
Please read our Disclaimer before continuing.

Topics pertain mainly to the following States:

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming