Sewing as a Business
My mind is a whirl of ideas about getting everything ready to begin selling our hand crafted goods this year. In addition to sewing my butt off over the next few months,and figuring out how we will best show off and market out products, I have to be thinking about how to handle the business side of things. There are many things so consider including LLC vs S corporation which is better for a small business?
What I have learned is that an[tag] LLC[/tag] ([tag]limited liability company[/tag]) can also be an [tag]S Corporation[/tag]. The primary difference is that an S corporation restricts who can own shares of that S coporation. Neither an LLC or an S corporation pay corporate income taxes. I read that [tag]Stephen Nelson[/tag], a Seattle CPA, recommends starting as an LLC. It keeps the door open for later becoming an S corporation for tax purposes if that’s necessary.
It’s really a lot to think about, but I’m sure that I will talk it over with my sisters and mom and then make a decision as to what to do.
