Business question

[sirima b]

Hello everyone!I am new to this website.  I had a question for all the expert MT out there.  I am working at a Physical Therapy Clinic right now and I am soon planning to do massages there soon.  I have limited space but I think I can make it work.  I would be the only Massage Therapist there and would handle everything for the clients who come in.  My question is:  Is it a good idea to be a part of an LLC?  I know that LLC has to do with liability.  I am an AMBP member so I dont think I would need to do much more.  I was wondering if anyone knows the importance of LLC etc...???

 

[ALEX!!!!!!!]

I may be wrong on this but I think there is a limitation on forming an LLC.....it needs to be with TWO people.  Do you have a partner?I also think it has to be a working partner....not, let's say, your mom or cousin.RobynPSUnless of course your mom or cousin is a MT.)

 

[vballnut153]

What are you looking to protect?  If you are looking for professional liability 'coverage' i.e. want to be insured against the possibility of harming a client during your treatment (massage) then your ABMP membership (which includes your professional liability insurance) will cover that.  Read your policy to know what those limits are.If you are looking to protect your business from the 'slip and fall' type of accidents, you need to purchase small business coverage (your ABMP insurance will not cover things that happen 'off the table').One of the reasons that businesses incorporate(whether the business is massage or painting houses) is to protect your personal assets from business liabilities, or money that the BUSINESS owes.  The funny thing is that as individual therapists, we don't typically have large debt that we rack up for our businesses.  So, if you are not really in need of this type of protection, then a Sole Proprietorship is usually a good (and the cheapest - no attny's fees, less expensive/self tax prep) way to run your business.Keep in mind that incorporating MAY have significant tax advaneforum.xxxes for you (another reason businesses incorporate...)  but you would have to met with a tax advisor to figure this out, since everyones situation is unique.Also keep in mind that there is some debate if an LLC's 'protection' is as proven as other corporate structures (S Corps, C Corps).  Again, talk to you tax advisor.If you would like to research more about business structures, I highly recommend checking out http://www.nolo.com .BTW, an single person CAN set up an LLC.Hope this helps,heather

 

[Jeniffer S]

From what I know about LLC's, they are sometimes used in special situations when you can't set up a regular corporation.A few things that may fall into considering LLC, versus PC, versus S-corp or C-corp, are things like how much money will the company be making, are all partners US citizens, do the partners practice the same type of business or different businesses,what will the sales of taxable items be like (I think this one is just something the accountant and lawyer need to know for tax purposes, but not sure about that)?Not that any of these say you can or can't form the incorporated company, just that they are a few of the things that go into deciding what kind of letters the corporation gets behind it's name.I am sure there are plenty of other considerations, but these are a few I am aware of.A good atty in that line of business is a great way to find out for sure what you need.  Also, the atty and the accountant will need to get together when the final decision is made, so that all paperwork is dealt with properly on both sides (from my experience)... so be prepared to be spending a little extra on that.berkana,thanks for the link! آ 

 

[BatMan]

You can form a sole proprietor LLC.  This would protect your personal assets from anything that has to do with the business.  You could also form a Sole Proprietorship. Now, if you are an employee of this clinic you don't have to worry about this stuff.  It's only if your business is going to be separate from the clinic.  This is the part you need to do before anything else.

 

[Cats rule.]

I am just in the process of forming a sole proprietor LLC.  I am self employed - but occasionally work out of a chiropractor's office (rent space on an as needed basis). The biggest advaneforum.xxxe of a LLC is--Limited Liability, no one can come after your personal assets for any reason.   Aside from the inital filing costs there are no additionals fees and it runs similar to a sole proprietorshipThe disadvaneforum.xxxe is that creditors and such can come after your business assets - any equipment or real estate purchased in the name of the LLC or for purposes of running the LLC are up for grabs so to speak.  Good Luck!

 

[icarus62]

Well said aralia...  exactly what I was going to say...

 

[knittinmama]

Business question

Talk to your tax person, an LLC may cost you more in taxes if it is not right for your personal situation.