Sole Proprietorship vs Incorporating

[Corbin Collier P.E.]

Question to small business owners. I am starting a design company of one. I'm leaning towards sole proprietorship even though I know this puts me at greater risk should litigation occur but it appears to be the best route for me at this time. Did you start as a sole proprietorship or did you immediately incorporate? With your experience what would you recommend to a new small business owner of one and why?

 

[IRstuff]

I think the question about ligation is moot. You are offering to do engineering to the general public, so you need to be a licensed PE. As such, you are personally liable for errors and omissions, regardless of the company structure.

TTFN (ta ta for now)
I can do absolutely anything. I'm an expert!

https://www.youtube.com/watch?v=BKorP55Aqvg

faq731-376 forum1529 Entire Forum list

http://www.eng-tips.com/forumlist.cfm

 

[Corbin Collier P.E.]

I appreciate your response however, the question is not about litigation but is instead about business structure. Determining the correct structure is essential not only as a means of asset protection but also to minimize the taxes accrued throughout the year. I understand what it means to be a PE and my civil duty to ensure public safety but I am an Engineer who is simply requesting the input from other professionals who have started their own Engineering firm. After further consultation I am likely going to create a Single Member LLC but would still like to know what others have done.

 

[cjmMech79]

I am also a PE who has started a one man design and 3D printing business. I went with a proprietorship, because I am not designing or selling anything that could cause damages that I could be liable for. I'd say it depends on what you're going to be designing.