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krlecroy

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Hello! My name is Kelly and I plan to buy and run a new B&B. I've been reading so many wonderful posts with lots of great suggestions and tips. I do have a question - the B&B itself will be 5 rooms but we also want to set up the property as a wedding venue and later as a vineyard (not sure about a winery at this point). Would you suggest we set our business up as an LLC or would it be better to incorporate? Your thoughts greatly appreciated!
 

Morticia

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You need two things before you do any business start up — an accountant and a lawyer. They are qualified to give you the info you need to avoid huge headaches in the future when your small adventure turns into a huge business.
 

gillumhouse

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Rather than asking us - which WILL get opinions - you will benefit MUCH more by asking #1 - a trusted financial planner or #2 - a lawyer. As I advise in my Aspiring Innkeeper Handout - it is a case of pay me now or pay me later and pay me later is more costly. (This also applies to succession of ownership in case of death or divorce - both have been known to happen)
 

Sam

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I agree with the above comments. It is much harder to make changes to LLC's or Inc's once they have been formed. They both also have different tax implications. Leave creating your entity and corporate docs to the professionals. It is not that expensive to have done. I would imagine that you want to start your business on the right foot. Good Luck with your new venture.
 

woodertea

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We started ours last month and opted for an S-Corp. I spent a lot of time reading, met with accountant and lawyer. We are full, but not open to public at this time as we are just doing B2B. Not sure what we will do when the gig ends next year. I may be mistaken, but not sure you need to strictly be ADA compliant if you keep to 5 rooms. Also, is appears that you do not need workers comp in NC if you only have one or two stock holders, and less than 3 employees. We wish you all the best!
 

JimBoone

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woodertea - I'm old, I worry about stuff, so these comments are not answers, just questions:

>>>not open to public at this time as we are just doing B2B<<< different method in which you obtained their business, but as they are not family wouldn't they still be considered public/customers?

>>>not sure you need to strictly be ADA compliant if you keep to 5 rooms<<< seems like I have read that also, although don't know if it includes all rules or structural rules.

>>> appears that you do not need workers comp in NC if you only have one or two stock holders, and less than 3 employees <<< don't have employees, don't know this answer, however, what about the liability in case of an employee accident/injury if you don't have insurance?
 

Morticia

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Interesting point about workers comp. We have two stockholders and one employee but are required to have workers comp. Not having it opens us up to double the costs — the cost of the injury times two. Not something I want to worry about so we pay for the insurance. If you can’t afford to pay for it out of pocket, get the insurance!
 

GoodScout

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One thing to keep in mind: You have the option as the owners not to pay for WC for yourselves. If you're covered by some other healthcare program, it makes little sense to pay for it.
 

Morticia

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One thing to keep in mind: You have the option as the owners not to pay for WC for yourselves. If you're covered by some other healthcare program, it makes little sense to pay for it.
We’re not covered by WC. My PT misunderstood my problem and all of a sudden all sorts of people were getting involved! I had to explain I did not hurt myself ‘on the job,’ but in my own house. They got it all straightened out.
 

krlecroy

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Many thanks for all the input! I have a million-and-one questions before we get started, so I plan to peruse through this site as much as I can.
 

Morticia

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Many thanks for all the input! I have a million-and-one questions before we get started, so I plan to peruse through this site as much as I can.
When you have questions, try asking each one in a separate thread. Make sure the title makes it easy to find later on and also makes it easier for us to respond. ‘What do I do now?’ is not a helpful title. 😉 ‘What do I do when a guest cancels?’ narrows it down much better. Good luck!
 
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