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Is this for your company, or a pass through entity (shell)? I disagree with Mchannon. A sole proprietorship is never better than a protected entity. Yes a v
by czbond 14y ago
Is this for your company, or a pass through entity (shell)? I disagree with Mchannon. A sole proprietorship is never better than a protected entity.
Yes a veil can be pierced, but at cost of discovery (and you must have real assets worth spending the time & effort to pierce).
If you're soliciting outside investors - an LLC can later be "upgraded" to a C-Corp. If it's for asset protection (eg: all I.P. is held by one entity, and licensed to another) - if you have sizeable assets - get a lawyer. Otherwise, get on to building an actual business, earn enough to make it worthwhile - and hire a lawyer. IMHO.
- aedr 14y agoThanks czbond. Yes it is for my company which is basically meant to be a niche website whose access based on monthly subscription (i.e. users from all over the US pay every month for access). My "office" is in WA. I was looking for how to make a single-member LLC that would offer me the most personal protection, for lawsuits both by users (though right now I don't see why that would happen) and potentially from similar companies for some kind of infringement. I would of course separate the entity records/transactions from my personal ones. mchannon's perspective seems to be that even if I do everything by the book I still look like an appealing target as a SMLLC which could cost me time and money even if it holds. From most of the replies above it seems like there are issues with the SMLLC as a choice - what are your thoughts on this?