for those that have a business, is it a corporation, sole propriertorship, etc...?? and how do you know how to classify your business? I'm looking into renting a kitchen from a woman to do a handful of cakes per week, and I'm not sure how my business would be classified.
thanks,
Kate
My husband was recently looking at starteing his own business. Not baking & stuff. He was told by a "Business attorney" since he is the only employee he would be classified as a sole proprietor. He owns it & doesn't have a bunch of employees. Hope this helps. You might want to call around in your area and speak to an attorney to cover your behind with all the legal stuff.
I have been reading up on this and am going to be a limited liability company instead of a sole proprietor. The reason I am doing it is because if you are sued as an LLC they can not come after your personal assets, where as if you are an SP they can. I think I did read that not all states allow you to be an LLC with only one person but our state does.
I just classified as a sole proprieter. I looked at all the options, and yes I could be sued, but I haven't been in 10 years. The taxes are easier, I don't have to keep extensive records, etc. I would talk to someone and weigh your options.
I'm an LLC, DH and I thought that since business is really picking up and I am doing cakes for people I don't know it was worth the expense to make sure that no one could come after me personally. It would really stink if they put a lien on half of our house and forced us to sell...then...no kitchen! 
Good luck with whatever you decide...I was an office manager for a large law firm here in Columbus before having kids and one thing I learned was that is was much better to spend a little more NOW instead of losing your shirt LATER. People are NUTS and sue for the craziest stuff- and are crazier over the stuff they WANT to sue for until they learn there are filing fees involved!
-Michelle
We have liability for injury at our house too but I was more concerned if they think my cakes made them sick. The things they can sue for are crazy these days!! It is not much extra to be an LLC here, I think $100 and then I also saw you can choose to do something with your taxes if you are a sole person LLC where you can just claim your business on your personal taxes and not have to fill out as much. I forget all the terminology now but it was in the paperwork to get an employer indentification number I think. Good luck!!
Kristin
Quote by @%username% on %date%
%body%