Author Topic: Best way to setup this type of business?  (Read 371 times)

AccountingForLife

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Best way to setup this type of business?
« on: September 18, 2018, 11:18:49 AM »
I've been asked by several people to do bookkeeping on the side for them.

I've also found a niche buying things cheaply and then selling them on eBay for a profit.

I'm expecting less than $ 2,000 by the end of this year so I'm not worried about having to file estimated taxes for 2019.

My question to you is this - what's the best way to set this up? I already have my own Accounting software and can keep track of revenue and expenses on my own.

So should I just do a sole proprietorship without any DBAs and just use Schedule C to report the additional income at tax time?

My only concern is litigation - I'd hate to do the books for someone and then get sued, especially considering how sue-happy people are nowadays.

Any advice?

dandarc

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Re: Best way to setup this type of business?
« Reply #1 on: September 18, 2018, 11:34:21 AM »
Proprietorship / Schedule C is certainly the easiest. For protection you could form an LLC - that would also give you some tax maneuvering room if you elect to be taxed as an S-Corp, but I think good liability insurance is better for protecting yourself from potential litigation.

AccountingForLife

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Re: Best way to setup this type of business?
« Reply #2 on: September 18, 2018, 12:11:52 PM »
OK, so it looks like purchasing liability insurance would protect from litigation, but not against unpaid bills.

Insurance sounds like the way to go in this case.
« Last Edit: September 18, 2018, 01:48:10 PM by AccountingForLife »

SeattleCPA

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Re: Best way to setup this type of business?
« Reply #3 on: September 18, 2018, 04:32:37 PM »
Proprietorship / Schedule C is certainly the easiest. For protection you could form an LLC - that would also give you some tax maneuvering room if you elect to be taxed as an S-Corp, but I think good liability insurance is better for protecting yourself from potential litigation.

I like the above advice and commentary. Good stuff.