Sole Proprietor or LLC?

I'm going to be straight forward on this one. If you are planning to start a business or already have one, go LLC or go home. Why do I say this? Only because it makes more sense to do business as a entity such as a LLC. No offense to you or anyone you may know that is operating as a sole proprietor. This is just my personal opinion, in which I will spend the next few paragraphs defending.

So, what does LLC stand for and what does it mean to you? Alot if you are or plan to become self employed. LLC is an acronym for the words Limited Liability Company, and that's exactly what it does. A company that limits your (the owner's) liability in case of any unfortunate events that may occur as a result of doing business. Who wouldn't want that? I mean, no one goes into business expecting these kinds of things to happen, but in everything there's risks, and as a smart business owner you'll want to limit risk as much as possible.

Doing business as a LLC will provide you with a level of confidence and comfort knowing that you have an added layer of protection. Not to mention the fact that your business isn't considered to be a real business unless you operate as a LLC or a Corporation. Don't believe me? Go and try to get a business loan with your personal info. Better yet, apply for a business line of credit and see where that gets you. Even if you are one of the very few people in the country who has an excellent credit score, it's just too risky to carry your business on your personal credentials. A LLC enables you to build business credit, which also increases the value of your business if you ever decide to sell it. Also, it makes it much more easy to apply and aqcuire wholesale accounts from suppliers.

When I formed Core Temperature LLC, I had confidence when applying for accounts, because I knew that my company would be respected. Not saying that your business isn't respected as a sole proprietorship, it's just that when you spend time and money to form a LLC, it says to your peers, lenders, potential partners and competitors that you mean business. Do yourself a favor the next you come across a business or investment magazine, and take a good look at the types of entities those companies do business as and you'll see what I mean.

Thanks for taking time out of your busy day to read my thoughts. I hope you have found this to be helpfull. If you are still unsure if LLC's are your cup of tea, I suggest you do some further research. Barnes and Noble has a selection of books discussing the ins and outs of LLC's. You should start there. Look for publications by Nolo, that's where I started. I'll explain how to form a LLC online in my next post.

Why Do Most People Choose To Become Self Employed?

I would like to start off first with a big thanks to YOU for taking the time to read my thoughts. I promise to do my best in delivering the most relevant information at all times.

First. What is self employment? A general definition is that when you are self employed, you own your job.
This is not to be confused with owning a business. Although similar, they're two totally different things. If more clarification is needed on this feel free to request it.

To Proceed: Why do most people choose to become self employed? I've had the opportunity to meet many entrepreneurs and most of them chose to work for themselves after being let go from their jobs, some of them still have jobs and just need supplemental income, and another group are fed up with working for others and left their job to work for themselves. Is this you? Today's economic climate is the breeding ground for self employment and the jump start many of us need. Even with speculation that we're bouncing back, people are no longer beat to depend on the government or their jobs to truly fulfill their long term needs and wants. Realizing that the only person who really knows and cares about your needs and wants is you, you're determined to get it.

I am often asked about the process of becoming self employed. Is it hard? Does it take long? The answer to these are both NO. It's not hard at all and you can be self employed by the end of the week. No Really. BUT, and that's a big but, it's more to it than that. Self employment brings on it's own rewards and hardships, ups and downs, reliefs and frustrations, freedoms and restraints that only someone who has been there can know. Being self employed isn't for everyone, but it may be for you. Here's how you can tell.

Are you tired of working for other people?
Are you willing to put in long hours.
Can you set goals and a plan?
Do you have a vision and desire to make it real?
If you ask yourself these questions and answered
yes, then typically self employment is for you.

Were you laid off from your job do to being late
and/or counter productive?
Do you want to work for yourself so you can sleep later?
Do you lack drive?
Do you find it hard to set goals and plan?
If you ask yourself these questions and answered
yes, then typically self employment isn't for you.
However, do not be discouraged, because these are things that can be worked on.

I hope that you have found this brief post helpful. I will elaborated more on the process of becoming self employed, starting a business, the similarities and differences between them and the pros and cons in later posts, but before you go I would like to share a short story about my road to self employment.

I can tell you that when I made the choice to become self employed, it wasn't do to the economic situation present today. In 2002, I was attending the Institute of Audio Research in Manhattan, NY. It was a bit of a shock to almost everyone  I knew, because I was expected to be the one to live the "dream", and go to college and all that good stuff. To pay for my education and afford a living, which I was barely doing, I entered the work force, Wendy's work force. After flipping burgers, taking out the trash, dealing with customers attitudes for minimum wage for a few months, I knew that I didn't fit into the employee category and set out to find a better way. A more simple, pleasant and rewarding way. Not knowing anything about starting a business, I linked up with the my step dad, who thought he was the ultimate hustler. He had a dollar store and a hot dog stand, and now with me around a water stand. And so it was, I started my great leap into the world of the self employed in the summer of 2002 selling Poland spring water for $1. I've come a long way since then and still a long ways to go.

Oh yea, I'm in the process of developnig a website and I need as many opinions as I can get. Advice and suggestions are welcome. Thanks