LLC or Sole Proprietorship /Georgia

[Colie06]

Good day everyone. I'm an Independent insurance Broker in Atlanta area. Specializing in final expense and life. I wanted to form a business LLC for myself, but when I attempt to do so online it says not avail for Georgia that I would have to create a Sole proprietorship instead.
I hear having an LLC is good for tax purposes and just to keep business expenses and all separate from whatever else you may have going on. Guess my question is has anyone created an LLC for themselves and has it been beneficial, I'm just wondering is its even worth it?

Help a beginner out .

Thank you all in advance

 

[VolAgent]

You should speak with an accountant, the one that is going to do your taxes for you. They know your situation better than anyone on here, as well as tax law. Particularly for Georgia. State taxes can play a big role in which way to go.

 

[Gooner]

You should speak with an accountant, the one that is going to do your taxes for you. They know your situation better than anyone on here, as well as tax law. Particularly for Georgia. State taxes can play a big role in which way to go.

Yep, talk to your accountant...if you don't have one...get one. I'm in GA, I have an S-Corp for insurance biz.

 

[sman]

Good day everyone. I'm an Independent insurance Broker in Atlanta area. Specializing in final expense and life. I wanted to form a business LLC for myself, but when I attempt to do so online it says not avail for Georgia that I would have to create a Sole proprietorship instead.
I hear having an LLC is good for tax purposes and just to keep business expenses and all separate from whatever else you may have going on. Guess my question is has anyone created an LLC for themselves and has it been beneficial, I'm just wondering is its even worth it?

Help a beginner out .

Thank you all in advance

Wherever you're getting that info is incorrect. I'm in Georgia and have an LLC. And I treat the tax status as an S Corp. Years ago I created my own LLC for a partnership. But for my insurance business I had an attorney put it together for me.

 

[Colie06]

Thank you, I mean, I don't have a booming business...Yet. So I'm not sue if I need an accountant or even the S Corp, but I think it helps me with this "starting my own business" kick that I'm on. So I wanted to go ahead and get the company name and everything established sooner than later.
Any particular reason you chose S corp over LLC?

 

[Tahoe Ray]

Thank you, I mean, I don't have a booming business...Yet. So I'm not sue if I need an accountant or even the S Corp, but I think it helps me with this "starting my own business" kick that I'm on. So I wanted to go ahead and get the company name and everything established sooner than later.
Any particular reason you chose S corp over LLC?

An LLC can file as an S. I file this way as well...I do it because my accountant told me to.

While I don't know Georgia specifically I would assume that you could set up a DBA as a sole prop insurance agent to fix your naming issue.

 

[somarco]

I don't have a booming business...Yet. So I'm not sue if I need an accountant

You need an accountant, or at the very least, a smark bookkeeper.

 

[BADTROUT]

Regardless of tax implication, an LLC or an S/C Corp carries the added benefit of a further separation of liability by creating that buffer between YOU as an individual and a lawsuit. DO NOT let an accountant dictate that part to you. I would look at LLC or an S corp, you just need the tax guy to explain which suits your needs best.

 

[somarco]

an LLC or an S/C Corp carries the added benefit of a further separation of liability by creating that buffer between YOU as an individual and a lawsuit.

Only if you run the business like a separate entity. Any commingling of funds or other shenanigans and a smart lawyer (or a dumb one) can pierce the corporate veil and you are toast.

 

[adjusterjack]

I wanted to form a business LLC for myself, but when I attempt to do so online it says not avail for Georgia that I would have to create a Sole proprietorship instead.

You don't have to "create" a Sole Proprietorship, you already are one. You're an individual doing business as an insurance agent. You might have to register your business with the state. At it's very simplest you would be Joe Blow DBA Joe Blow Insurance.

I hear having an LLC is good for tax purposes

An LLC is a disregarded entity for tax purposes so there is no advantage. You would use Schedule C for your business tax and Schedule SE for Self Employment tax (social security). There may be other forms related to your business.

The IRS website has a great deal of forms, instructions, and publications that you should be studying.

https://www.irs.gov/businesses/small-businesses-self-employed/small-business-forms-and-publications

just to keep business expenses and all separate from whatever else you may have going on.

Oh come now. It's easy to separate your business finances from your personal finances. Business checking account, separate file drawer for paperwork, separate file folders on your computer. You don't need an LLC for that.

Guess my question is has anyone created an LLC for themselves and has it been beneficial, I'm just wondering is its even worth it?

I was a self employed private investigator for a few years. Didn't need an LLC. As a practical matter, I don't see the need for it. A lot of people have the wrong idea about what an LLC does.

I wanted to go ahead and get the company name and everything established sooner than later.

Then just pick a name. Joe Blow DBA ________________ Insurance.

Use the KISS principle.

Regardless of tax implication, an LLC or an S/C Corp carries the added benefit of a further separation of liability by creating that buffer between YOU as an individual and a lawsuit.

There's one of the misconceptions that abound about LLCs (or even S and C Corps) especially with a one person business.

The LLC form of business, like the corporation, protects the owners of the business from personal liability for the debts of the business. For example, if the LLC enters into a contract with a third party and breaches it, the LLC is liable for that, but the LLC members are not unless they personally guaranteed the contract, which is something that lenders and astute business people often insist upon. The LLC member is always responsible for his own debts and wrongs, including liability for the negligent acts he performs for the business (and for which the LLC might also be liable). There is also the possibility of “piercing the corporate veil” (google it) which is an even bigger risk for single member LLCs.

Only if you run the business like a separate entity. Any commingling of funds or other shenanigans and a smart lawyer (or a dumb one) can pierce the corporate veil and you are toast.

Even running the business like a separate entity won't help because an insurance agent's services are so personal that his client will only care that Joe Blow messed up his insurance and Joe Blow is who the lawsuit will be aimed at.

The best way to insulate yourself against lawsuits is buy enough Professional Liability (Errors and Omissions) Insurance.

You'd be foolish to sell even one policy without that insurance. The time to buy it is as soon as you get licensed.