LiveAlive
08-19-2013, 06:36 PM
Greetings all;
I have worked as a consultant for other companies in the past. I was debating registering a company, whether I get any business or clients is unknown, but I want to register with a certain name.
Me and my wife are both US citizens and NJ residents, we file a joint return in NJ.
My wife could be part of this, although she does not have any knowledge of my industry (Information Technology, Governance, Risk, and Compliance).
I met with the small business administration person and she told me to register as an LLC. However, I did some reading and seem to gather a single member LLC is a "disregarded entity" by the IRS.
We have several options in NJ - as follows
LLC (SIngle member only - any value to doing this ?)
NJ Domentic Profit Corp - DP
NJ Domestic Professional Corp (PA) (don't think this is a fit, we do IT compliance, not medical, etc.)
Limited Partnership (the only partner could be my wife, but we prefer she is not, except for being a woman owned business, and for getting her insurance)
Limited Liability Partnership
Here are some requirements.
#1 - I want my personal assets protected.
#2 - I may or may not get clients / business. If I find a job, then the newly registered company just sits there, with no income and minimal expenses.
#3 - If my COBRA health insurance runs out, I would like my me and my wife to get medical insurance - we could do this as individuals or through the company. Ideally speaking, my wife does not want to be in the business, but depends on advice given.
#4 - If possible, we would like to keep the accounting and taxes for the business separate, which may not happen with LLC being a disregarded entity, unless, in NJ it does not matter ?
The accountant wants 250/hour - which I can't afford to pay, so here we are. If anyone provided advice, I appreciate it, my only request is, if you are not sure of something, please be clear - so I don't take off in the wrong direction.
Thanks all.
I have worked as a consultant for other companies in the past. I was debating registering a company, whether I get any business or clients is unknown, but I want to register with a certain name.
Me and my wife are both US citizens and NJ residents, we file a joint return in NJ.
My wife could be part of this, although she does not have any knowledge of my industry (Information Technology, Governance, Risk, and Compliance).
I met with the small business administration person and she told me to register as an LLC. However, I did some reading and seem to gather a single member LLC is a "disregarded entity" by the IRS.
We have several options in NJ - as follows
LLC (SIngle member only - any value to doing this ?)
NJ Domentic Profit Corp - DP
NJ Domestic Professional Corp (PA) (don't think this is a fit, we do IT compliance, not medical, etc.)
Limited Partnership (the only partner could be my wife, but we prefer she is not, except for being a woman owned business, and for getting her insurance)
Limited Liability Partnership
Here are some requirements.
#1 - I want my personal assets protected.
#2 - I may or may not get clients / business. If I find a job, then the newly registered company just sits there, with no income and minimal expenses.
#3 - If my COBRA health insurance runs out, I would like my me and my wife to get medical insurance - we could do this as individuals or through the company. Ideally speaking, my wife does not want to be in the business, but depends on advice given.
#4 - If possible, we would like to keep the accounting and taxes for the business separate, which may not happen with LLC being a disregarded entity, unless, in NJ it does not matter ?
The accountant wants 250/hour - which I can't afford to pay, so here we are. If anyone provided advice, I appreciate it, my only request is, if you are not sure of something, please be clear - so I don't take off in the wrong direction.
Thanks all.