Business structure for preschool

[kilsik1]

Hello all,
This is my first post, I hope this forum will be helpful. I'm considering starting a preschool in upstate NY. I'm having trouble determining which type of business structure I should use, should it be sole proprieter, LLC, or incorporated? Any thoughts on the benefits or drawbacks of each structure for a preschool business?
Thanks in advance,
Patricia

[leinadx]

Welcome to the forum!
Can not really go into specifics on every one of those (there is a bunch of info on www.sba.gov about the differences) but for me the decision was easy - sole propriator. Reason - cheap. Of course if I have to declare bankrupcy - it's my record and my money. Nobody to blame

[Mr Luis]

No No No No No. DEFINITELY not a sole proprietorship. As a sole proprietorship, you would have to assume FULL liability for any legal or financial problems that you may have in the future. For example, if a child were to fall and injure himself as a result of your negligence, you as an individual would be liable. That means that if they sued you for a few hundred thousand dollars, your PERSONAL assets could get seized because sole proprietorships don't make a distinction between personal assets and business assets. Granted, your insurance would probably cover for you, but in your industry, I'm pretty sure that they would require you to at least be a Limited Liability Company (LLC) or corporation (S or C). For more information about business structures, visit http://nolo.com . They provide a wealth of information and the writers all have very "reader friendly" writing styles. Good luck!