Which business entity is best?

June --

I am a Mortgage Brokerage / Home Remodeler.

What is the best business entity to form to minimize tax and personal liability as a home remodeler?

-- Guy


Hello Guy,

If you use the right tax professional, and set up the correct self-employed pension, then you should be able to get get every tax break you need as a sole proprietorship. Sole proprietorship is also the easiest and least expensive business structure. .


If you need liability protection then register as a Limited Liability Company [LLC] set up as a sole proprietorship. Then look for any other potential liability and get additional insurance to cover those. Take a look at my post LLC? Incorporate? to learn a little more about LLCs.

Don't let some fast-talking accountant bully you into a business structure that you don't need! You may need to incorporate because of factors not evident in your email. If you do, be sure that you understand the reasons why and also what are your obligations regarding maintaining the protection of a corporation.

BTW -- You don't say whether or not you are married. They are many benefits to hiring your spouse.

Best,
June