[Kswiss]

Hello Friends of CP,

Kind of a spinoff of Flames Addiction’s post on staring your own business. So thanks for the inspiration to seek advice and inspiration.


My gf is starting a small home based business and there is a lot more things required then she originally thought. One of the things she is wondering about, is how she should classify her business structure as. Either a sole proprietorship or incorporation. Is it more beneficial to start as a sole proprietorship and then incorporate as your company grows? She is a bit concerned about the unlimited liability of a sole proprietorship (can insurance sort of offset this fear?). Also, if she incorporates she knows there is a higher upfront cost but figures all the paperwork for taxes wouldn’t be too difficult because sales won’t be anything huge at the beginning.


I am totally new to this and a lot of the stuff I am reading is quite intense.


I know there are different advantages and disadvantages to both but we want to pick CP’s brain and all you small business owners out there about which business structure you decided to choose? What worked well? What didn’t work? Was doing your taxes complicated? What insurance did you require? What would you have differently before starting your own business? Any crazy surprises?


Anyway, starting your own business is quite the endeavor and thanks in advance for any advice and tips!

- Kswiss