Open LLC first, before starting as an Owner Operator?

No it is better to talk to a lawyer and an accountant to find which entity is needed for your situation.

 

I’m not sure there’s any truth to that. From the time I started my LLC to running my own authority was 6 months. I did it ahead of time as I was saving money. Most people don’t care about your time in business. How you present yourself in person and over the phone is much more important. People can tell if they’re dealing with a fool or someone that fell off the cabbage truck the day AFTER yesterday.

 

As ridgeline said most important is what type of Corp is best for your situation. S Corp LLC or?

 

Haha!! Wrong. Any Yahoo with $300 can get authority easy. You do not have to be incorporated.

 

Yeah it made sense before, read what I said ... again.

An established business means one that actually did something for a few years, not just been formed and have had a few transactions.

 

I formed Corporation and then declared with IRS as an S-corp before even purchasing a truck. The main reason was to save money on Payroll taxes. In practice, I prefer to have private and business bank accounts separate. In case of expanding and hiring people it is better to be corp or LLC for liabilities.

The differences between LLC vs Corporation at a level of a single owner op are very subtle and I don't think that they matter a lot. Still, with a corp you have to file an annual report and pay a fee and in theory it is required to keep so called a minute book which comprises resolutions and decisions of what the corporation does and it must hold an annual shareholder meeting.