Thinking of starting a business

[LBJefferies]

I want to start my own business. I have a couple different products I think I can make/sell and also a service that I think I can provide as an independent contractor. Which sort of business should I go with if it's just going to be me? Which one provides the best tax incentives? Can I offer multiple unrelated goods/services all under the same business license or do I need to start separate businesses for each? Surprisingly I have found relatively little to clear up these questions using Google. Thanks for the help guys.

[NKRoberts]

I want to start my own business. I have a couple different products I think I can make/sell and also a service that I think I can provide as an independent contractor. Which sort of business should I go with if it's just going to be me? Which one provides the best tax incentives? Can I offer multiple unrelated goods/services all under the same business license or do I need to start separate businesses for each? Surprisingly I have found relatively little to clear up these questions using Google. Thanks for the help guys.

It seems like the popular choice nowadays is an LLC. I think they have become so popular because of their simplicity. I have used them for the side projects that I have started and have been pretty satisfied with them.
Are you going to be selling the products online or in a store?

[LBJefferies]

It seems like the popular choice nowadays is an LLC. I think they have become so popular because of their simplicity. I have used them for the side projects that I have started and have been pretty satisfied with them.
Are you going to be selling the products online or in a store?

Farmers markets, online and I plan to market to grocery stores. We will see where it goes from there.

[NKRoberts]

Farmers markets, online and I plan to market to grocery stores. We will see where it goes from there.

from my experience you can sell multiple unrelated things online under the same licenses, you just run the risk of having all of the items being an asset under one setup.

[Rsully70sev]

Two words for you. Market research.

Small businesses have a disgustingly high statistic of failure. Make sure you do your research before you start dumping money into ANYTHING.

And yes, LLC's are getting more and more popular. Don't let the name fool you though, although there is less personal liability than say a corporation, don't think it's invincible. Also, with an LLC it can go one of two ways. If you're the sole owner, your taxes are considered a disregarded entity and you file under your individual tax return. If there are more than one owner, it's an entire different filling with the IRS.

The actual legal part of setting up a business is not going to be the expensive part. I got my mutual-benefit nonprofit corporation started for under $500 in California. It's the inventory, rent/domain fees, marketing, etc etc etc etc etc that is going to cost the big bucks.

[pureaudio]

Why not a sole proprietorship? If it is just you and it doesn't sound like you have a real solid business plan, go with the easiest and cheapest route. If it doesn't pan out, not really a big deal and taxes are easy. As a start up business in this economy, you'd better have a real solid plan with money backing you up if you want to just dive in.