Few questions re: going solo Forum

[Anonymous User]

Hi so I’m thinking strongly about going solo. I have a few questions and I’m hoping you all can assist:

1) Should I form a LLC? who should be my registered agent? Should I hire an agency to handle?

2) Can any solos out there recommend malpractice insurance? Should I just get a recommendation from my bar association?

3). How do you keep track of your income for tax time?


Thank you.

[AVBucks4239]

Hi so I’m thinking strongly about going solo. I have a few questions and I’m hoping you all can assist:

1) Should I form a LLC? who should be my registered agent? Should I hire an agency to handle?

2) Can any solos out there recommend malpractice insurance? Should I just get a recommendation from my bar association?

3). How do you keep track of your income for tax time?


Thank you.

1) You should form an LLC because (a) you will look more professional, (b) it will arguably shield you from personal liability if you actually operate it like an LLC, and (c) an LLC allows you to be taxed as either a sole proprietor (extremely easy accounting but you might get crushed on self-employment tax) or as an S-corp (accounting is more complicated, but once revenues are high enough, you will save significant money on self-employment tax).

I personally did a sole proprietorship year one and am doing an S-Corp year two.

2) I used my state bar insurance. You want to make sure you are a member in your state and county bar associations because those memberships will more than pay for themselves in all the discounts you get.

3) In terms of accounting, you should just use a cash basis. In terms of software, I use Quickbooks and it's very easy because it will link to all of your relevant accounts. Everything (other than retainers) goes into and out of your operating account. I review mine weekly to track expenses and income (if you wait any longer you will forget what you bought). I would recommend Quickbooks Self-Employed if you're a sole proprietor ($10/month) or Quickbooks Simple Start ($20/month) if you are an S-corp.

[Anonymous User]

A mentor of mine left his firm over a year ago to form a partnership with another former partner from a different biglaw firm. He said he used the six-week plan for going solo from myshingle.com and was very happy with it.