Can you form an LLC with just one employee?
If you're unsatisfied at work, you're not alone.
According to a Gallup poll, just 30 percent of American employees are engaged and motivated at work. The reasons range from unhappiness with their bosses, to stress over hours, to simply not being inclined towards an office structure, but the ultimate takeaway is the same: for many people, a traditional office environment isn't working.
So why not set you on your own path?
One impediment is that a lot of people don't know how to form an LLC. Others fear the the idea itself is implausible, and believe that they need a hierarchical structure for their company to be a success. Some many not even know whether it's possible to be a one-person corporation.
Not only can you form a one-person corporation, you can thrive.
Over two thirds of American businesses are solo enterprises, and many of those are performing admirably. Shifts in the economy, along with new and emerging markets, have created an environment where it's natural for entrepreneurs to forge their own paths.
The benefits of incorporating for a single person reflect those for any sort of company, but with the caveat that you can actually choose whether you want to be regarded as a separate entity from your corporation for income tax purposes. The IRS official website has details.
"An LLC with only one member is treated as an entity disregarded as separate from its owner for income tax purposes (but as a separate entity for purposes of employment tax and certain excise taxes), unless it files Form 8832 and affirmatively elects to be treated as a corporation," the site explains.
So if you're not happy with your job, it could be time to move on. An incorporation services company can help you get started.