The great debate: business titles.

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I'd like to start up my own small business soon. (I currently live at home but also weld in a manufacturing plant and I'm still here because I want to go back to school for some more education.) I have some fabrication equipment here, I also want to buy a stick welder to go next to my tig machine, but I don't currently do any side work. I think I could get my name out there because I'm fairly known in some off-road racing groups and stuff, but I want a business title so that when I do get a repair job or or fab job from time to time I can worry less about legalities, payments, and most of all liability. Tax write-offs would be nice too, hahaha. My main question is which type of business should I go with?1. It would be solely me, no employees any time soon for obvious reasons.2. Most work woud be done in my dad's small shop on our residential property.3. Most jobs would be repairs on ATV's, motorcycles, UTV's, etc.4. In the future I would want to have my own shop constructed (of course after moving out) and work from there.5. I might have some products I'd want to patent and have manufactured if I could get them out enough... Eventually.My dad's landscaping company is a LLC. I also think S Corps and C Corps look like they'd do the job, but while less tax would be nice I'd rather pay a bit more in taxes and not get my butt sued as easily when someone slips and falls to break an ankle on the gym rack I built or when someone hits a tree a year later and tries to claim that they got hurt because my weldment on the stupid frame design broke again... Stuff happens.Don't get me wrong, I take pride and care in my work and I'm a good weldor. I've built some big stuff for the companies I've worked for, and IF there was anything like a repair or project I wasn't confident about I wouldn't send it to the customer before I was confident it would hold up to its loads and stresses... Hopefully nobody here has started a business and had something go wrong that got them trouble because of their business choice as far as mere paperwork goes. But I'd like to know some of the successes and not-so-successes of those who runs their own company and I'd like to get their advice. Anything is appreciated!John
Reply:You don't have to be an LLC or incorporated. My side buisiness is just a DBA. Just make sure you get some insurance. I carry 2 million. When you apply for the insurance they'll ask you a whole arsonal of quesions, but be sure they know you'll be welding in your dads shop and possibly on some portable job sites? I know when I first built my shop and started doing more and more side work I didn't have any liabilty insurance. When I did get it I was told by my agent that had I had any issue to my shop irreguardless whether it was related to my welding, had they found out I was doing commercial work in it they wouldn't have covered the claim. Just a little FYI.Good luck!!Also you were saying you wanted to get a stick welder to go next to your TIG machine. Have you thought about getting a MIG welder instead? Since your TIG will also do stick, well any that I've ever used would anyway. Just know when I was starting out I did everything I could to diversify my cababilities until the funds were there to have the whole fleet of welders I have now.-DoogieMiller 350PMiller Trailblazer 325 EFI w/ Excel PowerLincoln LN25 suitcase welderXMT 304/22a feederMiller Syncrowave 350LXMiller EconotigHobart Handler 140(2) Uni-Hydro 42-14Hypertherm 65 plasmaWEBB Gap bed lathe
Reply:There's no reason for you to be a corporation (S or C are tax terms. LLC is a legal term. An LLC can be either an S or a C), until you have personal assets to shield from the business. So until you own a home, its probably not worth it. Start out as a sole proprietor and just use a 1040 form with a schedule C. You don't even need to set up a DBA. Get reasonable insurance and write it off as a business expense, and you should be fine. Its also the most tax efficient way to do business. No double taxation as you would have in a corporation (the corporation gets taxed first, then you get taxed on whatever salary the corporation pays you).Miller Multimatic 255
Reply:Ok thanks for the knowledge! Good stuff to know! I still need to find out how it all differs so I can lay out my options and study over it. I'm in no rush, but I have had some people say they MIGHT have me build such-in-such and I'd rather have the biz license/title and insurance for sure!
Reply:Oh and about the tig machine. It's a Miller Diversion 180. Does the job for small aluminum work and small pipe and plate, but can't be switched to a stick welder without extensive work... So it'll remain the small-time tig rig
Reply:BTW, as "president" of a cooperation, you can still be held personally liable.  It is relatively easy for a lawyer to "pierce the corporate veil".  See: http://www.nolo.com/legal-encycloped...eil-33006.htmlCon Fuse!Miller Dynasty 350Millermatic 350P-Spoolmatic 30AMiller Multimatic 200Hypertherm PowerMax 1000G3Miller Maxstar 200DX
Reply:Originally Posted by con_fuse9BTW, as "president" of a cooperation, you can still be held personally liable.  It is relatively easy for a lawyer to "pierce the corporate veil".  See: http://www.nolo.com/legal-encycloped...eil-33006.html
Reply:If you use a business name it has to be registered at the county office.Also watch out for zoning issues.I talked with a fellow who was just 10 feet outside a commercial zone.That kept him from doing lawn mower sales and service.He later moved.I did the same thing 45 years ago.I have my TV shop in a small town with no zoning.Retired now.Customers who say MIGHT are worthless.I notice that 8 country stores have closed in this area in 5 years.Go to work in a welding shop for 2 years before going out on your own.