Business Type

It depends on your needs an LLC or PC may be sufficient. My late father was a CPA who specialized in small businesses. Contact your local

SBA (small business association) for referrals to professionals to guide you in setting up partnership or articles of incorporation. Some have multiple employees and find LLC sufficient for their needs. Others need the structure of incorporation.

U.S. Small Business Administration | The U.S. Small Business Administration | SBA.gov

Thank for your help. I'm just confused some people say one thing and some say another. Our plan is to grow our business a much as possible. If we end up with 50 employees down the road I just want everyone to be protected. You think i should speak with a CPA or an Attorney? One person told me they did it there self they just filed the proper paper work with the SOS and had a attorney look it over.

Depends on the state. Not all CPAs know the intricacies of small business. Start with the SBA and go from there.

If you incorporate you more likely want an attorney to ensure your personal liability and personal assets are properly protected

Ok thanks I have a meeting with my local SBA next week.

LLCs are now mature and are usually a better choice than regular corporations for at least one reason, they do not require annual corporate bookkeeping (I'm referring to legal documentation, not finances). LLC's tax status is identical to corporations and you can choose S or C type on your first tax filing. In most states, it takes about 10 minutes and as little as $20 to form an LLC, there is little need for handholding by a contractor. Save your money and buy a Nolo book on incorporating. In short though, protection from liability from employees or contractors actions is the same for LLCs as for regular corporations, and the primary reason to incorporate is that protection. There are differences in taxation, but most choose "S" style passthrough companies - I'm an outlier with a C company like large corporations because I come out ahead on retirement accounts contributions over an S company election.

You do not want to be a PC (professional corporation) with taxes at 35%, and a staffing agency is not a PC. PC's are for higher level professionals such as doctors and lawyers who bill the end client directly. You won't do that as a nurse staffing company.

Thank you NedRn for all of your advise. You don't know how much my wife and I appreciate all of your help. I would advise anyone looking into starting up a staffing agency or just wanting to go independent contact him. Thanks once again.

Please don't contact me, I am not in the consultant biz. I'm happy to answer questions here on this forum.