If you own your own business...

[Okapi]

how do you know what type of business to start? (x-posted from WAHM Well, since I figured there would be a lot of business owners there)

An old boss wants me to do some consulting work for him The type of work, hours, etc, are all perfect. I'm so excited! DH suggested looking into starting a business, but how do you know what type of business you should be? I've heard about LLCs before, but then there's also Sole Proprietorships, Partnerships, Corporations I'm sure it varies by state, but I am having a hard time reading through them. It seems like the LLC is sort of a "best of both worlds," but if it was that clear-cut, why would they have the other types? Also, once you do decide, how long does it take to get everything cleared (again, I'm sure it varies, but are we talking days or months)? Would there be any issues with me starting the work as just myself and then, once the business is started, changing it? FTR, the company I'm with wouldn't care, but I don't know all the legal/tax issues.

Also, one article I read suggested starting a second bank account for the business, but then how does that work as far as me being able to access the money? If it's in an account that is under the business' name, are there any restrictions to what I can do with it?

[cchrissyy]

you need one of the Nolo Press books. there's a lot to know and those guys do a great job laying it all out.

Yes, you can convert business types. I was a Sole Prop for years before Incorporating. Then, while an S Corp I bought up an LLC. It's just a matter of paperwork, costs, and what the attorney and accountant advise for your particualr situation.

Banking is simple. As a Sole Prop, once you have a business license and a Doing Business As, you simply take that to the bank plus your photo ID. As an LLC or Corp, you take soe other biz paperwork too but the idea is the same. any authorized signer on the account can deposit and withdraw funds but if that's only you, then yes, you can do that any time you like. Just keep careful books!

[madskye]

I have an llc. Our local Small Business Administration was a big help in figuring out what kind of entity to set up. They have workshops and they actually helped with the paperwork, too.

The business account is no biggie. I pay myself out of it monthly, and pay any business bills with that account.

Congratulations! I consult in my industry too, and so far it has been three years and great work.

[*MamaJen*]

Those Nolo books are a good recommendation. Also, you may want to make an appointment with your local economic development director. They tend to have good lists of resources for residents who want to start a small business.

[Okapi]

Thanks so much for the suggestions! I will go find the book(s) and will check out our local resources (never occurred to me to do that ).