[theicebox]

Hello everyone!

I am new to the forum and new to the shave ice business. My wife and I are getting started in the shave ice business with a trailer and hope to do different events. I know we need a Tax ID Number and a DBA but as far as ownership, does anyone know which type is best? I was advised to get an LLC to avoid the 15.3% tax on sole proprietorship but I do not know anything about it. As far as everyone on this board, what do you guys use?

-Sole Proprietorship
-Partnership (general, limited or joint venture)
-Corporation
-S Corporations
-Limited Liability Company

Any advice would be great!

[ShaveIce²]

Hi, here in Hawaii you would need a state GE tax number, a federal employment ID, a trade name, and a food establishment permit which requires you to have access to a commercial kitchen.

In terms of types of ownership, it is really up to you. I would recommend either S-Corp or LLC. Unless you have a business that is quite big and complicated you shouldn't use a C Corp which taxes you twice. Since you are going to operate with your spouse, you don't really need a LLP either.

You should have a good talk with your account to find the best type that is suited for your business and needs for tax and liability purposes.

[dfl138]

We formed an LLC and it works fine for us. It allows you to just add the business into your personal tax returns.