What business structure do you use?

[Main Street Carwash]

What business structure (corporation, LLC, sole proprietership, etc) are you using for your wash and why? Please note the type of wash you own also.

 

[Dan-Ark]

LLC, single member, taxed as sole prop. Simple inexpensive, does not require all the minutes, etc of a corp. can elect taxation as an S corp. (Affects self employment social security taxes). Can have one person own, or group and appoint manager either one of owners or third party. Lots of flexibility. My (wife's) wash is 4 SS plus 1 IBA. If I bought a second, I would make another LLC to own it, perhaps set up another LLC to own all the individual location LLCs.

 

[Jim L.]

Why don't you consult your income tax professional (CPA) before you pick a tax status for YOUR new business.

 

[Main Street Carwash]

I was curious about how others were doing it, not really asking for advice. I actually have a corporation, an LLC, and a few sole proprietorships. I agree, a good CPA is a must for any serious business.

 

[Rudy]

Sub S Corporation.

Trumps tax cut now allows a 20% cut off of the top, before the income flows down to the shareholders.

Huge.

 

[Earl Weiss]

Real Estate owned By LLCs and operations by S Corp. Separates / insulates real estate asset from operations with more exposure. S corp pays rent to LLC. At the time this was set up LLCs were really not an option. (business was started as S Corp and properties were partnerships changed to LLCs . Today they would likely both be LLCs since LLCs may not have some State Tax return requirements. Also while Single member LLCs can use the members SS# for tax reporting -IMO don't do it that way. Opens the door for someone to argue it's not really separate so they can impose personal liability. Free legal advice i worth what you pay for it.