Starting an LLC: Where to begin?
in Business, Accounting & Taxes ·
.keskin. why on earth would you choose an LLC????
The overhead is massive compared to being a sole proprietor, though you do get into the VAT system immediately.
I don't know what kind of business you're planning, but if you're looking at heavy investments—meaning buying equipment, machinery, or vehicles specifically for the job—then maybe an LLC makes sense. Otherwise, stick to being a sole proprietor.
What's your educational background??
What exactly are you planning to do?
You can run an LLC while working a regular job, just like you could be a sole proprietor and still have a 9-to-5.
This whole topic is complicated. Costs are everywhere. You need a solid grasp of accounting and tax laws before you decide what fits your needs.
If you have more questions, just ask. I'm happy to help.
If you're thinking about setting up companies just as "backups," we're talking about revenue up to $28 annually—in those cases, I agree, a sole proprietorship is much more efficient.
I saw a comment suggesting you can't make a living off $28—I agree. Companies structured that way usually exist to catch "side income" rather than serving as the owner's primary livelihood.
There is one great option out there—Cooperatives. Here in the States, they sometimes carry a weird, outdated connotation, but they are a huge hit in Nordic countries like Sweden and Norway... The administrative costs are lower than running a full corporation, yet you can still conduct business with other legal entities. Just some food for thought; give it a search on Google.🙂