Just asking what best practices typically are, because someone told me that I should try to get small but consistent income results before starting an LLC.
I guess this makes sense, since it can cost a little to start and is a lot of work. However, wouldn’t this mean my business’s initial income/expenses would be coming in/out of my personal account, rather than a business bank account?
Don’t most people advise against this?
I agree with the comments, but my experience was I did very well the first year. As a sole proprietor, I got hammered in taxes. I immediately created an LLC (moved to S Corp) and created another single member LLC management company for certain schedule C items. Best thing I’ve ever done is get smart with taxes and hire a good CPA. I learned the hard way. Never again.
What kind of business?
You only have to worry about taxes once you have the revenue. Getting hammered with tax is a good indicator that you are ready to be Limited.