If you have a LLC... tell me about it.

I would look into an S-Corp for tax purposes. (what my company is)

With an LLC your company has to pay taxes on the profit and then you have to pay taxes on your pay, so you end up getting double taxed.  With an S-Corp all corporate profit rolls through to your personal income tax return so you only have to pay taxes on it once.

Because I am a Licensed Educational Psychologist, I cannot set-up a traditional company.

California has professional corporations that don't allow anyone with a professional license (therapists, MDs...) separate malpractice liability from personal practice liability.

If you hare working under a certain license check this out.

My wife's business used to be an LLC.

• Basically you have "partners" with an ownership percentage, not an "owner".
• The profit/loss on an LLC is not taxed.  It rolls over to your personal tax report and you pay based on it being earned income.
• You need to research and/or talk to an accountant or tax attorney who understands the laws in Texas...  Tax rates could change based on the majority partner's income.  For example; in NC, because of the state tax laws, it was better to have me listed as 75% partner because of my work income as compared to my wife's which was solely from the LLC.  Since we file jointly, it's legal.
• The LLC prtoects your personal posessions and income whereas a sole proprietorship does not.  If your on-the-side coaching business is sued, they can't go after your personal home, income, etc.
• There are annual fees associated with an LLC paid to the State Secretary of State.  Find out how much.  NC is $200.  2 years ago, they institued the PLLC (Professional Limited Liability Corp) for small businesses like my wifes and yours.  The annual fee for that is only $15!
• I wouldn't do a Corp or S-Corp as you'll be double-taxed.  Unless you want to set up a 401k or retirement plan through the business.

I just checked.  YES, Texas has a PLLC.  I would consider this!

http://texascommerciallaw.blogspot.com/2011/05/what-is-texas-pllc.html

http://www.business.texasonline.com/guide/tpllc.jsp?lang=en

http://www.google.com/url?

Looks like I was mistaken on the LLC double taxation.  I was thinking C-Corp when I was writing about the LLC.  I can say with certainty though that an S-Corp is not double taxed. The primary reason for doing an S-Corp is to avoid double taxation.  (My company is an S-Corp)

from: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/S-Corporations

S corporations are corporations that elect to pass corporate income, losses, deductions and credit through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income.

I did find this link that describes some of the differences between S-Corp and LLC.

http://www.businessknowhow.com/startup/llc-scorp.htm

You have this backwards...

An LLC is a pass-thru operation.  The profits or losses from the LLC pass through to your personal taxes.  The LLC pays no taxes.

I've been an LLC for 8+ years now. You don't want to be an S-corp at this point.  There are little advantages for a small business.  You can change to an S-corp later.

You can set up an LLC quickly and 'cheaply' via LegalZoom.com 

It's a simple process and very necessary.  The biggest reason you want that is because it separates YOUR assets from your Coaching Biz assets.  Meaning if for some strange reason someone sues you in a coaching capacity or a business capacity, they can go after your $300, logo'd tent and flag but not your house and car.

Make sense?

You're confusing me.  lol

I did similar to Brian and hired a CPA as well as an attorney when we incorporated.  He said by far S-Corp was the way to go for tax purposes.  I draw a fairly low salary which is taxed at ordinary income including the combined 15% (or whatever it is) SSI tax.  I then take the bulk of my pay as a monthly distribution.  At the end of the year whatever net profit/loss is left flows down to my personal income tax return with a Schedule K-1.

 IMHO, there advantages and disadvantages of LLC's, S-corps, and C-corp's and the best in your circumstances depends on what your business particulars are, size, # employees, etc and the TAX consequences.  If you are a sole proprietor, with no employees and your only concern is liability, just stay  a sole proprietor and get more liability insurance.  Much cheaper and accomplishes what you want.  Setting up an LLC just for liability protection is a wast of maney and does not always give you the protection you think you are getting. 

The Small Business Administration has a ton of info, not only on LLCs and such, but on everything else for starting your own small business.

http://www.sba.gov/

IRS.gov also has info:  http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Starting,-Operating,-or-Closing-a-Business

Congrats on your new business!

As an LLC you can chose to be taxed as an S-corp as you describe.  However the LLC gives you more protection in terms of liability.

Be careful about pulling too much in distributions and too little in salary.  Your salary needs to be "fair and standard" for a person of your experience and position.  The IRS doesn't like it when we try to cheat them out of SS.

Just to add whiel people on here have been setting up LLCs jointly you can set up an LLC individually and have yourself as 100% owner.

Also a DBA and LLC/s-corp are different things.  In Florida I had to use a DBA as my company traded under a different name to what my LLC was registered as.  This was because (my lawyer informed me) my LLC had to be unique in the state and had to have my surname in it.  A DBA can be your trading name and doesnt have to be unique (if you pick someone else name you are still subject to copyright/trademark infringement).  For example your comapny could be Hicks Enterprises LLC doing business as Americas Top Coaching.  Or if you formed as Hicks' Coaching LLC, you wouldnt need a DBA.

You don't have to use QuickBooks.  Only if your accountant demands it.  I believe you said your business would be service-only, yes?  No product or inventory?  That makes it much easier - no balance sheet, only income statement.  We use an Excel spreadsheet to track monthly expenses and income.  The summary from that with the paperwork is all our accountant needs to prep the business taxes.

Talk to your insurance agent and get an umnbrella liability policy.  Cheap and you can rest easy.  As I eluded to in my earlier post, even with an LLC your would want this coverage to protect you as an individual.