If I’m starting a home based child care service business, what legal structure would you recommend?
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If I’m starting a home based child care service business, what legal structure would you recommend?
Asked on February 20, 2015 under Business Law, New York
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
A limited liability company, or LLC, is probably the best choice. As the name implies, it limits your liability, or protects you from most (but not all) legal actions arisign out of the conduct of your business. (Note: you'd still be liable for any personally guaranteed debts and for any tortious acts, you *personally* commit, such as if you ran into someone while driving for work.) You can elect pass through tax treatment (same as a subchapter-S corporation), so as to avoid double taxation. And its simpler, with less paperwork and record-keepting, than a corporation.
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