business types

[John L. Harrison]

What is the common business form for a home inspector?
Sole Proprietor
LLC
Corporation
S. Corp

Living on a state line would I need to be registered in both states to conduct home inspections? Both states have the same guidelines as far as licensing.

[Brian E. Kelly]

Sole Proprietor LLC

This is my business model

[Gary Farnsworth]

S-corp. Talk to your accountant about what works best for you and your situation.

[James E. Braun, CMI]

I asked my CPA that question about 10 years ago. He told me since if I think I am going get sued then I need to not be a sole proprietor and go ahead and pay more taxes as a LLC. I like paying very little taxes, so I have never switched. Since the bank owns about everything I have, I really have nothing to loose if I get sued.
I am living the American dream. Sad but true.

[Bobby Hamilton]

Originally Posted by jbraun

Since the bank owns about everything I have, I really have nothing to loose if I get sued.
I am living the American dream. Sad but true.

Glad to see I'm not alone. All they'll get from me is a bottomless pit of debt.

[Nick Gromicko]

www.nachi.org/inc.htm

[rmaday]

Originally Posted by gfarnsworth

S-corp. Talk to your accountant about what works best for you and your situation.

Ditto.

The "corporate veil" offers you no protection from inspections you personally perform.

[David P. Valley]

Sole Proprietor LLC

[Steven C. Meyer]

Originally Posted by jbraun

I asked my CPA that question about 10 years ago. He told me since if I think I am going get sued then I need to not be a sole proprietor and go ahead and pay more taxes as a LLC. I like paying very little taxes, so I have never switched. Since the bank owns about everything I have, I really have nothing to loose if I get sued.
I am living the American dream. Sad but true.

Seems to me there are only a couple options here:

Option 1.
If you have assets to protect, hide them in an off shore account.

If the above does not apply to you the go to option 2

Option 2.
Keep your self in such crushing debt, that no attorney would bother to sue you, as there woiuld be no hope of recovery,

If all else fails and you are sued, there is always the bankrupt court!!!

The American Dream??? Is there a 800 number for that????

[Bruce A. King]

Its my understanding that an LLC is different from a sole proprietor.
http://hubpages.com/hub/Sole_Proprie...the_Difference


When you have an LLC you are an "owner", not a sole proprietor.
When you have partners, you are all "owners" or "members".

An LLC provides you with the protection of a corporation but with the ease of tax filing methods the same as a sole proprietor.

There are no tax advantages by having a sole proprietorship vs an LLC, all net income is taxed at the personal rate both ways.

The absolute worst business form for an inspector is sole proprietor.

Also, I know someone that got sued (a builder) and no, you can not bankrupt this type of debt. If you can't pay it, you have a judgment that follows you until you sell real estate then it is taken from the proceeds. In some cases, it may be deducted from your pay (garnish) if you end up working for someone else.

Maybe Joe Ferry will jump in here and confirm all of this if anyone does not believe it.

[Nick Gromicko]

www.nachi.org/inc.htm

[Nick Gromicko]

The best thing for an inspector to be is not "judgment proof" (which is impossible), but rather "collection proof." The way to be "collection proof" is to never own any attachable assets.

[Dan Bowers, CMI]

We formed as a cartel.

[Steven C. Meyer]

Originally Posted by gromicko

The best thing for an inspector to be is not "judgment proof" (which is impossible), but rather "collection proof." The way to be "collection proof" is to never own any attachable assets.

That was my point, no "findeable assets" means no judgement can be satisified.

If you have assets, hide the heck out of them!!!

If you have nothing to get, you have nothing to lose!!

That means, if there is nothing to get/find, your chances of a law suite being filed against is practicaly nill!!

[Steven C. Meyer]

Originally Posted by bking

Its my understanding that an LLC is different from a sole proprietor.
http://hubpages.com/hub/Sole_Proprie...the_Difference


When you have an LLC you are an "owner", not a sole proprietor.
When you have partners, you are all "owners" or "members".

An LLC provides you with the protection of a corporation but with the ease of tax filing methods the same as a sole proprietor.

There are no tax advantages by having a sole proprietorship vs an LLC, all net income is taxed at the personal rate both ways.

The absolute worst business form for an inspector is sole proprietor.

Also, I know someone that got sued (a builder) and no, you can not bankrupt this type of debt. If you can't pay it, you have a judgment that follows you until you sell real estate then it is taken from the proceeds. In some cases, it may be deducted from your pay (garnish) if you end up working for someone else.

Maybe Joe Ferry will jump in here and confirm all of this if anyone does not believe it.

It would be interesting to get a legal opinion on the bankrupt portion of your post. I do believe, if it is a civil judgement, it can be discharged in in a bankrupt filing. If it is a criminal matter that requires restitution, then that probably would not be discharged in a bankrupt court.

If what you say is true, then explain just how so many contractors bankrupt, and are back in business with in weeks???