SIGforum.com    Main Page  Hop To Forum Categories  The Lounge    Forming an LLC
Go
New
Find
Notify
Tools
Reply
  
Forming an LLC Login/Join 
Member
posted
Just how hard is it to form an LLC? I’m thinking of retooling my home based business. My older brother who runs a home security business said you can do it online. Any advice or suggestions?
 
Posts: 503 | Registered: June 03, 2009Reply With QuoteReport This Post
Essayons
Picture of SapperSteel
posted Hide Post
Not that hard. I did it with a couple of friends when we bought a B&B in Virginia. You can write up your articles of incorporation yourself.

Two recommendations for you:

  • Buy and read, from cover to cover, the book LLCs for Dummies. It explains everything you need to know.

  • Pay a lawyer to review your articles and make sure you haven't screwed anything up, and to file the paperwork.


    Thanks,

    Sap
  •  
    Posts: 3452 | Location: Arimo, Idaho | Registered: February 03, 2006Reply With QuoteReport This Post
    Member
    Picture of lastmanstanding
    posted Hide Post
    We had our attorney do ours. Cost a couple hundred bucks no big deal at all.


    "Fixed fortifications are monuments to mans stupidity" - George S. Patton
     
    Posts: 8505 | Location: Minnesota | Registered: June 17, 2007Reply With QuoteReport This Post
    If you see me running
    try to keep up
    Picture of mrvmax
    posted Hide Post
    I discussed my business plans with my cpa to make sure an LLC would work for me then did it online myself. It would probably be wise to see a cpa and an attorney.
     
    Posts: 4078 | Location: Friendswood Texas | Registered: August 24, 2007Reply With QuoteReport This Post
    Age Quod Agis
    Picture of ArtieS
    posted Hide Post
    How easy it is depends on your state. In Florida, it takes about 10 minutes, or less online.

    Once you get the LLC, you will also want to get a separate tax ID number for it from the IRS. Takes about 3 minutes online.



    "I vowed to myself to fight against evil more completely and more wholeheartedly than I ever did before. . . . That’s the only way to pay back part of that vast debt, to live up to and try to fulfill that tremendous obligation."

    Alfred Hornik, Sunday, December 2, 1945 to his family, on his continuing duty to others for surviving WW II.
     
    Posts: 12748 | Location: Central Florida | Registered: November 02, 2008Reply With QuoteReport This Post
    Member
    posted Hide Post
    I wish I could remember the exact details but a friend of mine had an LLC from years back for side business cleaning rugs that he never shut down and after being laid off work last year after about 2 months he got a letter saying he had to pay back his unemployment because he owned a business and wasn't eligible.

    It is possible he had a Corp instead of an LLC but I don't think he did so if it isn't your primary income I'd check into it.
     
    Posts: 2489 | Location: Arkansas | Registered: July 21, 2007Reply With QuoteReport This Post
    eh-TEE-oh-clez
    Picture of Aeteocles
    posted Hide Post
    In California, forming an LLC gets you a tax bill for $800 a year.
     
    Posts: 13046 | Location: Orange County, California | Registered: May 19, 2002Reply With QuoteReport This Post
    Just because you can,
    doesn't mean you should
    posted Hide Post
    Why are you forming an LLC versus sole proprietor?


    ___________________________
    Avoid buying ChiCom/CCP products whenever possible.
     
    Posts: 9456 | Location: NE GA | Registered: August 22, 2002Reply With QuoteReport This Post
    Member
    posted Hide Post
    There is a lot of state and local specific tax implications. I'd consult a local attorney, ideally one who is business oriented and also a CPA or has one on staff. They do this all the time and it is not expensive. I do business in multiple states and some are relentless if you miss a filing, even if there is no tax due. They will assess a tax on you and put a lien on you before a cat can lick it's derriere.
     
    Posts: 3718 | Registered: August 13, 2005Reply With QuoteReport This Post
    Member
    posted Hide Post
    I am a retired CPA, and I just helped my brother start an LLC.

    Please note that an LLC provides you with limited liability, like a corporation. For tax purposes, an LLC can be taxed as a sole proprietorship (Form 1040 Schedule C), or a partnership (Form 1065) or an S Corporation (Form 1120S) or conceivably a C Corp (Form 1065). My brother chose to be an S Corp.

    These were the steps in Maryland (MD)
    1) Check with MD for a fictitious business name that is not already in use.
    2) Submit articles of organization to MD, there are samples on the MD website.
    3) Obtain an Employer ID number (EIN) from the IRS, Form SS-4
    4) Once you get the EIN, submit IRS Form 8832, and IRS Form 2553 if you elect to be an S Corporation.
    5) Start a business bank account using the EIN as your tax ID number.

    It took him about a week to get all this done.


    ----------------------------------------------------
    Dances with Crabgrass
     
    Posts: 2180 | Location: East Virginia | Registered: October 12, 2009Reply With QuoteReport This Post
    Member
    Picture of SR
    posted Hide Post
    Regarding above, need to have 2 or more members for an LLC to be taxed as a partnership.

    Default for tax filings:
    1 member - disregarded for tax - included on tax return for the single member.
    2 or more members - treated as a partnership
    If you want S Corp or C Corp status you need to file an election.




    Speak softly and carry a big stick loaded Sig
     
    Posts: 4887 | Location: Raleigh, North Carolina | Registered: September 27, 2004Reply With QuoteReport This Post
    Little ray
    of sunshine
    Picture of jhe888
    posted Hide Post
    quote:
    Originally posted by dusty3030:
    There is a lot of state and local specific tax implications. I'd consult a local attorney, ideally one who is business oriented and also a CPA or has one on staff. They do this all the time and it is not expensive. I do business in multiple states and some are relentless if you miss a filing, even if there is no tax due. They will assess a tax on you and put a lien on you before a cat can lick it's derriere.


    This is sound advice. There are both federal and state tax considerations. Are you an expert in the Internal Revenue Code and your state's business organizations code?




    The fish is mute, expressionless. The fish doesn't think because the fish knows everything.
     
    Posts: 53118 | Location: Texas | Registered: February 10, 2004Reply With QuoteReport This Post
    Member
    Picture of Blume9mm
    posted Hide Post
    Feel free to disregard my advise:

    If you work for yourself and don't have any full time employees all the advantages 'they' tell you you get by incorporating is a joke..... ultimately all it does is make doing taxes... you have to pay an accountant.. and if you ever get in trouble you get to pay a lawyer twice... first they sue the corporation... if they win then they can sue you personally.....


    My Native American Name:
    "Runs with Scissors"
     
    Posts: 4441 | Location: Greenville, SC | Registered: January 30, 2017Reply With QuoteReport This Post
    Little ray
    of sunshine
    Picture of jhe888
    posted Hide Post
    quote:
    Originally posted by Blume9mm:
    Feel free to disregard my advise:

    If you work for yourself and don't have any full time employees all the advantages 'they' tell you you get by incorporating is a joke..... ultimately all it does is make doing taxes... you have to pay an accountant.. and if you ever get in trouble you get to pay a lawyer twice... first they sue the corporation... if they win then they can sue you personally.....


    That is not true. One of the main benefits to form a separate entity is to avoid personal liability. A traditional corporation, properly documented and run gives robust protection. Ask a lawyer in your state about the various options.




    The fish is mute, expressionless. The fish doesn't think because the fish knows everything.
     
    Posts: 53118 | Location: Texas | Registered: February 10, 2004Reply With QuoteReport This Post
    Member
    posted Hide Post
    My experience was that it was easy as hell to form an LLC. Getting out of it was somewhat a different experience. It was a major pain in the ass. Taxes were also a major pain.
     
    Posts: 7524 | Registered: October 31, 2008Reply With QuoteReport This Post
      Powered by Social Strata  
     

    SIGforum.com    Main Page  Hop To Forum Categories  The Lounge    Forming an LLC

    © SIGforum 2024