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Should my franchise me a LLC, S Corp, or C Corp?
I will be meeting with a CPA to guide me in my final decision but just want to get some peoples opinions as to which and why.
I will be a franchise owner of an industrial supply company. I will not hold any inventory or have any type of store front ( I ship product direct to my customers from the wearhouse that the company provides)
My income will only be my commission I bring in
5 Answers
- Anonymous4 years ago
Then be a sole proprietor. You will live or die by the commissions and won't have to set a reasonable salary (as you would be expected to do with a corporation). If you are in California, don't even think of an LLC as that's a $800 year fee to the state whether or not you are making money.
BTW, "wearhouse" is a brandname for men's clothing. Warehouse is the word you are looking for.
- Anonymous4 years ago
Liability protection for an LLC or corporation for a small, single-owner business is a myth. If you get sued, they'll pierce the corporate veil so fast it will make your head spin.
Don't form a business entity because of the myth of liability protection. If you want to protect your assets, get a business insurance policy.
- JudyLv 74 years ago
I'd leave it as a sole proprietorship until you see if you make any money from it.
- A HunchLv 74 years ago
We don't know what state you are which could change things.
However, based on how you explain the business, you have zero liability. Why wouldn't you establish it as a sole proprietorship? You don't have anything to protect...
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