LLC, who's got one

Murk

Murk

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I have started making a few dollar. But much, but a couple hundred a month.
I have thought of a few ways to expand, one of which will require a EIN.
but I can still do ok with out it. Just wondering if any of you have formed an LLC and what made you decide it was time for one.

Also is it hard to have one, is there a lot of paper work involved throughout the year.
 
You can get one set up easily for a few hundred bucks through legalzoom. Just make sure you understand what you're required to do every year with fees and such. I waited until I was making $10k+ in PROFITS before I went ahead and formed the LLC. It's not as difficult as some would make it seem.
 
Thanks for the reply. I filled the form on legalzoom, just didn't make the payment yet. I am a little confused about requirements through out the year.
Will need to research it a little more.
 
There really aren't any requirements. You have a yearly fee to the state and the LLC is considered a pass-through tax entity, so you just file with your personal tax return. I'm sure there's plenty of documentation on your state website about the process.
 
Maybe I'm a dinosaur, but I'd see an accountant to form an llc and to let them tell me that I should have one.

If you don't think you are making enough money to see an account you probably don't need an llc. I said probably because maybe you're doing something online that could cause you to get sued and lose your home, but I doubt it.
 
Yep, good tip calamari, the thing here is I'm about to try and make a jump from affiliate to retailer of a particular item.
As far as cash flow, currently it's low, but it has been trending upward for a little while now.
I see a chance to make the retail profit instead of the 10% also, in order to get a manufacturer online I need a EIN.
Now, I can stay where I'm at currently, and do ok with some pocket change..Or I can attempt to do more.

There is still a lot of room for me to grow in the current setting, fuk waiting
 
I'd talk to an attorney. Some LLCs are better than others.

For example, if I had let my accountant or online site make my LLC.. I would have most likely not have had an operating agreement included in it.

Most attorneys will tell you an operating agreement makes you more legit in a legal case and look like a real business then some shady setup.

I could have been lied to as well, but it was well worth the peace of mind having it. Attorneys can also set up other things for you while doing this to keep you more protected.
 
I decided I'm going to get professional help setting it up. Legalzoom doesn't get into any depth as far as your business. For that I can just fillin the paper work and skip the $150 charge from LZ.

My brother had once spoke to an accountant about it and was quoted $500 with fees and publications, that's not bad at all. Will keep you guys posted once I get it all going
 
Getting started in business is a nice stepping stone and starting point in your career. One of those learning curves is setting up your business to be a "real business" the day that starts to happen is a good thing (not a bad thing). In some ways you will be happy when your at the bar and your friends say they got back $2,000 you can brag about paying a lot more money then they are getting back.

Good luck in your future build.
 
Trust me on this, pay an attorney to create one for you. Most will typically charge ~$200-450 to create a fairly standard LLC for you. It pays to have a professional create it, walk you through the process, and answer any questions.

Legalzoom is a joke for all except those that have the tenacity to be well-read and certain of what they're doing. IIRC, I believe they've been sued quite a few times, and in some cases even had things like living trusts invalidated. In some cases, I have even heard of their trusts being invalidated, trusts in which people have used them as a proper legal vehicle for acquiring expensive items such as properly registered machineguns and other NFA firearms. NOT cool when you are looking at things like 8-12+ month ATF processing times, possibly purchasing $20-50k+ toys like an MP5 subgun or MG42 belt fed machinegun.....and then you find out ATF invalidated your paperwork due to the legitimacy of your trust being called into question. Bottom line, don't play with legal entities by yourself if you don't know what you're doing.

Yes, as a standard sole proprietor LLC, you will most likely just file earnings as an additional source of income on your federal income taxes, such as with a schedule C. This may not necessarily be the case in every single state in the US. There may be other considerations at a state level, such as sales & use tax, annual franchise tax, etc. Find your county tax assessor's website and/or visit their office in person, and they can get you started with what you need to know about things at a city, county, and state level. If you're super cool, you might find loopholes, such as NAICS classification codes that technically and accurately fit your business, which allow you to claim as tax exempt for all of your sales (under certain conditions), thereby eliminating paying any city, county, or state sales & use tax (I did this with one of mine :cool:).
 
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