Answers
Mark - I think that you may have gotten them backwards. My experience is that an LLC is least-expensive since there is no "board" requirement and certainly filing fees are less.
Regards,
Cedric
You have to think like the wealthy and believe that it is possible.
An LLC is feasible in the cleaning business.
The LLC is simpler, easier and most cost effective.
You could file as an LLC or an S Corp, but if this is a one man cleaning business you could also just file as a Sole Proprietorship and use your social security number when filing taxes. Just be sure to read up on your local laws to see if they would require a DBA (Doing Business As) or a TIN (Tax Identification Number). I think a cleaning business would be a great way to start out, but if you think bigger you may find that you have the capabilities to start a home maintenance business that incorporates cleaning, gutter cleanouts, window washing, lawn service and minor repairs that don't require a specialized license. Also be sure to become bonded through an insurance agency.
I am confused. Which one is better 'S' or LLC?
Hello:
The least expensive route would be to create your company as an 'S' corporation. All profit would be taxed at the tax rate you achieved for that year. LLC's are set up primarily for companies that may have a number of working shareholders In them that need more accounting and may support several legal entities of different firms under the shareholders control.
Hope this helps.
Regards,
Mark.
I found a great resource to help answer your question. I cannot give account either way but the Small Business Association (SBA) is always a great place to look. The below is an article that discuss your same question.
Hope it helps some.
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