What business form is ideal

The answer will depend primarily on your preferences for taxes and liability. As a sole proprietor, there basically is no distinction between you and your business. If someone sues your business, they're suing you and you are totally liable. Whereas with other types of entities, you can separate yourself from your business with regard to the tax and liability issues to protect your personal income, etc. A CPA or tax or other business attorney can help; or if you want free expert advice and counsel, check out your local chapter of SCORE (Service Corps of Retired Executives) http://score.org/

If you have been operating as a sole proprietor and want to keep things simple then continue as a sole proprietor. If you create an LLC you also create another tax return to file and depending on the size or your company you will have additional accounting rules to follow. If you are concerned about liability consider this; you are the only owner and maybe the only employee even if you create another entity you will still be the one responsible. It is a myth that LLCs or Corporation are the best liability protection. Then best liability protection is liability insurance. I have been advising small businesses for more than 30 years and I have help as many terminate their corporations in order to simplify there business as I have help to form Corps and LLCs. I suggest you keep it simple and be sure your liability insurance is paid.

Biznik, Mike Jacobs, hosted a Biznik event awhile back and discussed this. PDF copies of a few charts which compare and contrast the different business entities--and their advantages and such--can be found on the website, http://RiachGese.com -- look to the bottom of the home page for the Seminar Handouts and Links. Of course, these are Washington State specific, but they might point out to you some areas to ponder/consider.

Here's a page that will provide you with an array of links to regulatory and legal organizations in your part of the world. http://www.lexisone.com/legalresearch/legalguide/states/florida.htm

Good luck.

Ken, I have some articles that address your question. Entity Choice (Saving Taxes with S Corporations) addresses S Corporations and the potential self employment tax savings of an S Corporation over an LLC. Use LLCs for Real Estate Investments addresses the use of LLCs for real estate investments. How to Create a Real Estate LLC addresses how to create a real estate LLC, of course. You can access all three articles from my Tax Accountant/CPA Library. Roger misspoke above about the need to file a separate income tax return when you create an LLC. Single member LLCs are ignored for federal tax purposes. His point about securing sufficient liability insurance is well taken.

If you don’t want to read the articles or want it explained personally, I am hosting a 1 hour Biznik event at my office at which I will explain the different tax implications of LLCs, S Corps or C Corps versus sole proprietors. I have limited the event to 3 guests so I will have time to address specific questions.

BTW Ken, you’re a little fuzzy. But hey, I’m black & white.

John