Encouraged to obtain LLC??

[msbrandysplayhouse]

Hi, I have had a successful school age program for the past 7 years. I have a 15 passenger daycare van that I use to pick up children for afterschool care and for summer camp field trips. I run my daycare out of a separate home that is on our property; we have two houses on one large piece of property in the city. My husband is building onto the daycare which will add almost 300sf to the facility, also increasing the overall square footage for a few more children. Currently I have 14-18 children in my program, along with an assistant. I recently came across an amazing opportunity to purchase a small activity bus at a ridiculously low price, so I bought it. I met with the previous owner to switch over the title and she highly advised me to not put the bus into my personal name. She said that I need to put it into the business name and that I need to be Incorporated or LLC for protection. While I totally agree on the fact that I need that type of protection as a business owner, I am worried that I will suffer financially during tax season from having to pay rather than getting a nice return that I have enjoyed putting back into my business over the years. I guess my question is will I still get a return being LLC or will those days of getting a tax return be long gone although I would be legally protected as a business owner?? Purchasing this bus, along with adding onto my facility is very exciting, however this part in deciding has been a little stressful. I appreciate any advise that you can share with me. Thanks, and Happy Friday!!

[TomCopeland]

Llc?

Hi, I have had a successful school age program for the past 7 years. I have a 15 passenger daycare van that I use to pick up children for afterschool care and for summer camp field trips. I run my daycare out of a separate home that is on our property; we have two houses on one large piece of property in the city. My husband is building onto the daycare which will add almost 300sf to the facility, also increasing the overall square footage for a few more children. Currently I have 14-18 children in my program, along with an assistant. I recently came across an amazing opportunity to purchase a small activity bus at a ridiculously low price, so I bought it. I met with the previous owner to switch over the title and she highly advised me to not put the bus into my personal name. She said that I need to put it into the business name and that I need to be Incorporated or LLC for protection. While I totally agree on the fact that I need that type of protection as a business owner, I am worried that I will suffer financially during tax season from having to pay rather than getting a nice return that I have enjoyed putting back into my business over the years. I guess my question is will I still get a return being LLC or will those days of getting a tax return be long gone although I would be legally protected as a business owner?? Purchasing this bus, along with adding onto my facility is very exciting, however this part in deciding has been a little stressful. I appreciate any advise that you can share with me. Thanks, and Happy Friday!!

There are several types of Limited Liability Companies (LLCs): single person, partnership and corporate. The most common LLC used by providers is a single person LLC. If you choose this option, your taxes will be exactly the same. You will fill out the same Schedule C, Form 8829, etc. No change in taxes.

However, to protect yourself and your business, I strongly recommend that all providers purchase professional business liability insurance, and remain a sole proprietor.

You don't want to put the bus under your business name because that means it won't be protected from a lawsuit. Incorporation means you protect your personal assets, not your business assets.

There are several problems associated with incorporating, including incorporating as an LLC (extra record keeping, not complete personal protection). See my article on this: http://tomcopelandblog.com/should-yo...ty-company-llc

[littletots]

My dcd is a cpa. He told me to get LLL. I sent him Tom's article. Dcd read & thanked me for the article. So many aspects fcc is different than a business. Way to go Tom!