Daniel HonanFounder, Profitable Painter CPA PLLC · I help painting contractors increase profits & cash flow while reducing taxes♦ Bookkeeping ♦ Tax

Painting Biz Owners: Which entity you may want to elect whether you’re starting or building your biz

Name: Painting Biz Owners: Which entity you may want to elect whether you’re starting or building your biz
Uploaded: 2023-12-27T14:30:14+00:00
Duration: 44 s
Channel: Daniel Honan
Description: In this brief dialogue, two speakers discuss how new or growing painting business owners should choose a legal business entity. Speaker A explains that a…

27 Dec 2023 · 1 min

Watch on YouTube

0:44

In this brief dialogue, two speakers discuss how new or growing painting business owners should choose a legal business entity. Speaker A explains that a Limited Liability Company (LLC) creates a separate legal entity that limits personal liability if the business is sued, but notes that the suitability of an LLC can vary by state and advises consulting a lawyer. Speaker B reinforces the recommendation to start with an LLC for simplicity and low cost, adding that as the company expands the owners can elect to be taxed as a corporation. The overall message is to begin with an inexpensive, simple structure while keeping the option to change tax status later, and to seek professional legal advice for state‑specific considerations.

Chapters

entity selection. If you're going into business or maybe you're just getting started and you're not sure, obviously it depends on the state you're in. In a lot of cases, LLC makes sense, which is a limited liability company. What this entity does is basically create a separate entity from yourself that limits the amount of liability that you personally are responsible for. If the business gets sued, that could help with some protection so you don't lose all you own. Obviously I'm not a lawyer. This is what the lawyers say. The other thing to keep in mind is sometimes depending on the state you're in, an LLC might not make sense. So it's something that you might need to consult with a legal professional if you're not sure.
Starting with an LLC is the way to go. As your company grows, you can choose to be taxed as a corporation later on. Keeping things simple and keeping things inexpensive as you're first starting out would be my focus.