Expert: Ed McFarland - 1/11/2007

Question
I am starting up a virtual assistant business with some office tasks for a couple of local churches.  I know that the corporation gives you liability coverage keeping you separate from the corporation.  But so does a LLC.  I even have the option to go into a partnership if I so desire.  For just a one person operation which is better?  Can I purchase a car through the business? Or is it best to take a car allowance?  Or are there other options out there?

Answer
The reality that for start up businesses, it is tax question as to which structure you use. A bank or most any other creditor will ask for a personal guarantee before extending you credit.

Since you didn't tell me which state you are in, check out your home state's business or economic development offices or the local office of the US Small Business Administration office. (Find it at www.sba.gov) They'll know the local situation and be able to point you to most efficient method and them get a good accountant.

Good luck