Type of business registration for this situation?

  1. #1

    Join Date
    Feb 2007

    Type of business registration for this situation?

    I have read previous threads on this topic, but would welcome advice on my situation. My division at a large company was recently closed, but I remain on good terms and have been offered occasional project work. I am also looking at getting involved with some online distribution platforms that pay out commissions for original content. To be honest, my main focus is on my job search and I do not expect these streams of income to be substantial. But I figure that an official entity is required and may serve as CV filler during this period of transition.

    A sole proprietorship seems to be the way to go, since it is the quickest/cheapest route and I don't expect risk of personal liability to be high for the work I plan to do. I don't want to face a time consuming/costly winding down process if I find a job next month. I have been speaking to some people about establishing a more ambitious consultancy, but this is just conceptual right now and I figure I can always set up a separate LLC if necessary.

    Is my reasoning sound? I do know some solo headhunters, copy editors, etc., who run their businesses as LLCs. They seem to be in the same boat, so why is this necessary? Is it more an issue of perception? Will a sole proprietorship not be taken as seriously by a prospective client/employer?

  2. #2

    Sole proprietor if you are doing small business without significant product risk.