[TriLUG] Re: [GoLugTech] legal question

[Mack.Joseph at epamail.epa.gov]

Joseph Mack PhD, High Performance Computing & Scientific Visualisation
LMIT, Supporting the EPA Research Triangle Park, NC 919-541-0007
Federal Contact - John B. Smith 919-541-1087 - smith.john at epa.gov

trilug-bounces at trilug.org wrote on 03/23/2005 12:07:11 PM:


>
> 8.  Incorporating might be a good option.

(IANAL)

I LLC'ed myself a while ago and then un LLC'ed myself when
I looked at the reporting involved.

For a single employee (sole proprietor) you only have to fill
out a an extra form your 1040. It's simple.

If you're an LLC you have to fill out the same tax form that
Ford and GM etc have to fill in. I didn't have a clue what
any of it meant and would have to hire accoutant to do it.

You don't get any advantages (although can't remember what they
are) until you start employing others (eg subcontracting people).

You do get limited liability. This is fine if you're in an occupation
where large damages can be involved (an employee falls off a roof and
incurs large medical bills). For programming/sysadmin I'm not likely
to have anything like this happen. If anyone needs it I have a clause
saying "max damages for unsatisfactory work will be return of money
paid on the contract".

You also get to register a business name, which you can't do by
yourself.

Joe