What type of business license should we apply for? -

At the beginning of 2010 my wife is starting her own at-home small business selling a relatively inexpensive handmade product. For now, the only people that will be involved in the business are the two of us. By my best estimation, we will probably gross somewhere between $500.00 and $750.00 over the first year. Also, all startup costs were paid for out of our own pocket. What type of business license would be most appropriate? We re thinking sole proprietorship because it seems the simplest, but from what I understand that won t protect our personal assets in the unlikely event of the business going bankrupt or being sued.I would really appreciate the opinion of those with personal experience with starting their own small business out of their home or someone that has experience from the legal side of it.Thanks.

well i own my own business but i registered as sole proprietorship, which is easisiest. Parternership since is both of you is also easy. If you are worried about having the pants sued off you or protecting your assetts then LLC or Limited Liability (Ltd.) is the way to go, but i think these would incur a bit of cost. to protect myself from certain problems i draft contracts so my clients would sign to offer some protection until i make enough money to go Ltd.But its up to you guys

Note: Please next time be specific about your questions. I can believe that you not selected my answers because not based in personal experience. I have a lot of experience at college dealing with license, next time I recommend to be more objective. Report Abuse

LLC is the way to go for small business.

You can use the links to learn more about the type of license you can get. The majority of small business used the LLC, I strong recommend based in experience of case in Puerto Rico. We use in class the case to study the license.Of course in you incurred in corp license this cost a little more at you don t need to open with debt your small home business, I think sole proprietorship s is one of the best way to go.*Sole proprietorshiphttp://en.wikipedia.org/wiki/Sole_propri��-Limited liability company (LLC)http://en.wikipedia.org/wiki/Limited_lia��- Limited liability limited partnership (LLLP)http://en.wikipedia.org/wiki/Limited_lia��--Best of Luck !