Set Up Your Massage Business LLC
One of the decisions that you need to make when you are starting a new business is whether you should set it up as a Sole Proprietorship, S-Corporation, C-Corporation, Partnership or an LLC. This article covers setting up your Massage Business LLC.
If you are unsure of the best choice, I recommend talking to an accountant or tax lawyer. Over the years I have had businesses set up for all of the above except a partnership. If you are starting a single practitioner business, I believe that an LLC is your best choice.
Why is it a good choice to form an LLC?
- Limited Liability: Like corporations, the members of an LLC are usually protected from personal liability such as lawsuits and court judgments. This can be an added protection in addition to your massage liability insurance if something bad was to happen. If your insurance company decides not to cover you, your LLC will protect your personal assets.
- Pass-Through Taxation: As a single member LLC, you are taxed like a sole proprietorship. In other words, the business’ profits and losses are passed through to your personal tax return. No need to file a separate tax return for the business like you would need to do for a corporation.
- Less Record Keeping: With less requirements and less paperwork than S-Corporations and C-Corporations, LLCs are easier to form and easier to keep in good legal standing.
Options For Setting Up Your Massage Business LLC
Option 1: Hire a Lawyer
Hiring a Lawyer to form your LLC is the best option, but it can be very expensive.
Tip: If you decide to spend the money to hire a lawyer to set-up your LLC, it’s a good idea to make sure that they specialize in this area. You can also use an accountant, but again make sure that they specialize in business formation and setting up LLC’s.
Con: This option can be very expensive: $500 to $2000.
Pro: Hiring a professional should guarantee that your LLC is set up correctly
Option 2: Do It Yourself
I don’t recommend setting-up your LLC on your own. There is a lot to know, and if you get it wrong, you could cause yourself headaches down the road. If you feel it’s something you can do on your own, then one option is to run it past a lawyer or accountant after you are done to make sure you didn’t miss something.
Con: A little scary if you don’t know what you are doing. Easy to make mistakes, which could cost you money in the future.
Pro: The only cost is your state’s filing fee.
Option 3: Use Legalzoom
Legalzoom is an online business that walks you through each step of setting up your LLC. They start with an online questionnaire that gathers all the information that is necessary. Then, they take care of the process of completing all the paperwork and filing it with your state. Once your LLC has been approved, the completed package is mailed to you along with useful information and tips. It’s fast, easy, and best of all it’s affordable. Also, you can be assured that everything is done right. If you have any questions, they have a helpful staff and access to a lawyer if you need one. I have used Legalzoom several times, and I have been very pleased with the process and the results.
What Makes Legalzoom A Good Option
- Affordable: The cost is much less than hiring a lawyer.
- Painless: They walk you through each step.
- Time-Saving: They take care of process of filing the correct paperwork with your state.
- Reassuring: You have the confidence that everything is done correctly.
- Helpful: Their knowledgeable staff is available before, during, and after the process.
Click here to get started.
What is the cost of setting up your Massage Business LLC?
The cost of setting up your business as an LLC can vary depending on how you set it up and where you set it up. There are three separate costs that can change depending on these variables.
- Setting Up Your LLC: Lawyer, $500-$2000; Legalzoom, $149.
- State Filing Fee: From $20 to $300 depending on your state.
- Publishing Your Articles: From $25 to $75 depending on the publication.
Tip: Legalzoom will automatically calculate your state’s filing fee for you. They also will give you some options for where to publish your articles when you get your final package from them.
What To Do If An LLC Is Not In Your Budget Right Now
I wouldn’t have written this article if I didn’t think setting up your massage business as an LLC is not the best way to go. If for no other reason, it sets up a firewall between your personal assets and any future legal action against you – for the record, over the years, I have had several and they are pretty scary. However, the cost of setting up an LLC can be out of your budget right now . I understand; I’ve been there. Another option is to set your business up as a Sole Proprietorship with a DBA (Doing Business As). This is fast, easy – you can do it yourself- and very inexpensive. I would encourage you to at least do this and then form your LLC at a later date when you have the funds. Check out the article below.
Set Up Your Massage Business LLC
It’s really not that much fun to do the legal or financial stuff when you are setting up your new business. Most of us just want to give massages and maybe do some of the fun and creative stuff that goes along with promoting your practice. However, taking care of a few things up front can save you possible major headaches down the road. Setting up the legal and tax structure correctly for your business is one of those necessities.
It’s been my experience that setting up your new business as an LLC makes the most sense. It protects you with a legal firewall while allowing your income and expenses to flow through to your personal tax return. There may be a better choice for your situation. For example, if you are opening a large, high volume business with many employees, then a corporation might be the best decision. If you have questions, you should consult an accountant or tax lawyer. Whatever you decide, do it now and save yourself the possibility of heartache later.
I hope you found this article helpful. Please, leave a comment below and let me know how you set up your LLC and what the experience was like. If you want to spread the word, please, share this article on Facebook, Twitter, or Pinterest by pinning the image below. I wish you success and prosperity.