What type of business structure should I use? -

I am looking at starting my own business in Wisconsin. It is going to be a auto mechanics shop were it will start out fixing cars and doing gen. maintenance but in time will be a Performance shop. I am going to be the owner and not have any employees for about the first year. I also am not putting any money out of my pocket except for business name and tax ID. Should this business be a Sole Proprietor or Limited Liability Company? and Why.

The answer to your questions really depends on what your initial objectives are. I said initial because you can change your entity down the road when your circumstances change.I usually tell my clients that if they are unsure as to whether or not they will be profitable then start out as a sole proprietor WITH a good insurance policy. The insurance policy will protect you from liability and is usually cheaper than the cost of setting up and preparing year end taxes for a LLC. If you do decide to go the LLC route to being with please remember that the limited liability doesn t protect you from all liabilities so you will still need business insurance.I hope your business is a success!