LLC methods

[monkeylove]

There looks like 3 general plans of attack for filing stuff; 1) By yourself, 2) Hire a lawyer, 3) Use one of the online services. My question to those of you who have started your business recently is which method and why? It not that I am planning on taking over the world but I am getting enough work that I really need to separate it and get some stand alone liability.

 

[flyingsquirrel25]

Hire a lawyer! For $650, he checked the name availability, registered it with the state and explained thoroughly the my options for ownership, and the two options you have for running an LLC. He also conversed with my accountant, working together to explain tax advantages of each method of operation. The only thing I had to do was sign the paperwork!

Just my thought

 

[Steve Connally]

When I started my biz I did it all myself. Virginia made it very easy to set up without hiring a lawyer. The next best thing I had was a quickbooks advisor who was also an accountant and tax preparer. I used quickbooks as my estimating and accounting software. Its a rip off but they all are really. She taught me about all the tax and accounting work as well as figuring out how much to charge and how to charge it. She had been a book keeper for many years. She tutored me once a week for about 6 months at $50 a pop and it was the best money I ever spent. You should be able to do a name search through the state corporation commission. Set up the LLC and workmans comp if needed through them also. It should be all submitted online. Then the biz license through your municipality. I had to get a variance because I listed my home as the office and I lived in a historic district. Just a couple of hoops to jump through but it was cake except trying to get a parking spot at city hall.

 

[NickfromWI]

We became an s Corp and paid like $1,500 for that. Sucked paying the money but I loved not paying self employment tax!!


love
nick

 

[owScott]

Steve is spot on. Here in Colorado it takes 30 minutes and $50 to set up a LLC. Secretary of state website. I have a lawyer friend who advises me and didn't need him. S Corp is still a LLC it is just different how you are taxed. Nick is right that you don't pay the 7% extra self employment tax, how ever you pay yourself as an employee which requires setting up payroll instead of just taking draws. Payroll can be complicated and usually requires paying someone to do this. I took 2 business classes ,1 from a tax lawyer,1 from a CPA. Was advised unless you already have employees and gross about 250,000 a year there is no advantage to the s Corp. My advise take a business class and find a good CPA will be money better spent than a lawyer. I just saved you $650

 

[jdhoward]

Is there a certain business class you recommend. If it helps my local community college is DMACC. I was thinking about hiring a lawyer just because all this llc talk is jibberish to me. I go to the state secretary website and there's about a million forms posted for llc. I did ctrl+f for certificate of organization and came up with jack squat.