![]() ![]() One important thing to point out is that you're only acting as an S-Corp on your taxes and not the rest of the year, because incorporating as an S-Corp is a completely different can of worms and is overkill for most reselling businesses.Īn LLC is not expensive and 100% worth it IMO. Long story short, you get better treatment with taxes and will save money. I'm not an accountant and won't pretend to fully understand it, but I've linked an article that explains why this is a good thing. The ability to use the S-Corp designation on your taxes. If you were a Sole Proprietorship and they won a $50K judgement against you, then you're personally on the hook for $50K and would either have to pay up or personally file for bankruptcy. Most of all, your move-in date is full of excitement. We covered all of the things to buy for a new house checklist. Assuming you concede or lose the case, then they're shit out of luck if you're an LLC. Our printable first-time home buyer checklist has a lot of different items on it, some you can get right away while others you can wait until you need them when you move in. ![]() Let's say you mistakenly sell a batch of counterfeit items and the brand decides to come after you hard and sue you for a shitload of money. If you ever get sued for anything related to your business, corporate veil protects your personal assets and you'd simply have to bankrupt the business. Now on the LLC or SP debate, both will do the trick, but I highly recommend going the LLC route for two reasons. You also want to have a separate business bank account and ideally, a cash back credit card that you use for all business purchases to make bookkeeping easier and to churn rewards dollars. You have the option of either registering as a Sole Proprietorship or an LLC, either of which would make you a "real" business. As part of the move-in process, you will want to ensure all paperwork has been collected and reviewed, rent is paid and current, complete a tenant walk through checklist, and provide a warm welcome to your new renter.
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