for your business

missilla · 05-09-2007, 02:43 PM

Do you sign up with your states as a corporation or a sole propritor? i have been on the phone all day with the state and they don't seem to be very helpful. i am not sure because the business is just getting started and not sure what i HAVE to register and what i don't. thanks for all the help.

UtahDoula · 05-09-2007, 03:04 PM

Well, I went with an LLC - my advice would be to talk with an attorney on this. My attorney was great, laying out all the options in a pro/con/cost comparison and then making a recommendation. I took the info, consulted with a friend who is a CPA, and made my decision. My attorney then drafted the paperwork and filed everything for me. It was WELL worth the cost.

missilla · 05-09-2007, 03:42 PM

how much did that cost you?

saalmc · 05-09-2007, 03:52 PM

The price will be different for every state. I would suggest you find your state's Secretary of State website which will have all the forms, info, and pricing. For example, in Ohio is $125 to file an "Organization/Registration of Limited Liability Company" form. There may be other forms you need to file as well, such as name registration or trademark registration. Your state's website should answer most of your questions.

Hope that helps!

Mile High Doula · 05-09-2007, 07:16 PM

I want to go to LLC too but all I did was my trademark/name.

You will be a sole proprietor unless you have other people working for you or with you or until you go to LLC or Inc.

An attorney can help you out.

ctowndoula · 05-09-2007, 10:17 PM

Once I started making enough to pay taxes on, and I got a business name, I became an LLC. Makes doing taxes easy. Your state or city's small business bureau should be able to help get your started.

tlcdoula · 05-09-2007, 11:28 PM

I went with an LLC as well.

b'earth angel · 05-09-2007, 11:54 PM

this is a timely question for me as well. I've not done anything yet. I did earn a couple of fees this past year and turned it in on my taxes-showing a loss w/all of my start-up expenses and training, etc.
So do I have to do anything until I show a profit or what??

Mile High Doula · 05-10-2007, 05:01 PM

Just do what you are doing. When you show a profit you can decide if you want to go LLC or just stay a sole proprietor. I am still a sole proprietor and actually made quite a bit last year and so far, I have made more this year then last, so I might go to LLC to offset the revenue.

FLLucinda · 05-10-2007, 08:18 PM

I'm not a doula yet (just started training) but my husband and I started a corporation last year in hopes of starting a business here in FL. We had a sole prop in the past. My advice is to talk to an attorney who can help you make that decision. I chose LJEL Enterprises, Inc because that way we can have more than one business under that corporation name. A "doing business as" situation. We paid $500 to have it all set up. Once a year we have to file a corporation report and pay $150 to the state of FL. Also if you have any employees you have to do all the quarterly taxes, social secutiry, etc.. And of course annual federal taxes. Taxes and paperwork are different between Corporation and LLC from what I understand and LLC is less complicated.

b'earth angel, Don't want to alarm you here but showing a business loss on a personal 1040 could trigger an audit. I would suggest setting up a business legally so that you can do the paperwork that would best help your situation. Not saying what you are doing is illegal but this is something my dad, who is a tax preparer professionally, advised me to do for my notary income as I was doing real estate closings, etc... The best person to advise you would be an attorney.

So much to think of....so much to learn!!!

saalmc · 05-11-2007, 10:45 AM

There are other reasons to strongly consider setting your business up as an LLC, besides tax considerations. I would suggest you find the Illinois Secretary of State website to read about different business options so you know what your choices are. Talk to a professional on your own or find out if your state has a small business set up department that can help guide you. I know there's a lot of information, it can get overwhelming, but I would hate to see anyone make a decision for themselves without considering all the facts...

Hope that helps!

Babycatcher · 05-18-2007, 03:23 PM

I plan on going the LLC route. My husband and I started a Home remodeling company and quickly rolled it into an LLC. LLC's are great for small businesses.

We did the paperwork ourselves and it was super easy, Check with your state but also check out Office Max or Office Depot, they sell all the forms that you would pay an attorney to fill out on becoming an LLC and that could save you some money!

Good luck!!

aurorabirth · 05-19-2007, 06:24 PM

I have no idea what a LLC is. HELP! I am thinking it is not a Canadian thing.

I am going to trademark my name, and I haven't thought further on it all yet...

UtahDoula · 05-19-2007, 07:09 PM

LLC = Limited Liability Company - it is probably a USA term, but Canada might have something similar.
For me, it was a way to separate the personal & professional finances and make it clear which is which, legally. So if I get sued for something involving the business - only my business assets are at risk. My family home, etc. is protected.
Taxwise, it's easy - a Schedule C on my taxes. In my state, I only have to pay a $22 fee annually - no annual reports or anything. So that is easy. (I think I may have to file some report and redo some paperwork - after 99 years in business, but I'm not planning on living that long, and even if I was, I doubt I'd still be doing doula work, LOL!)

aurorabirth · 05-19-2007, 07:39 PM

Ahh ok, here we have incorporated companies, which sound very similar. We have an incorporated company now, it owns several rentals, this way our personal home is protected and we pay less tax on the income.