Starting To Be Legit..How To Start An LLC?

23 replies
Did not see a post in search but does anyone have a good resource on what to pick (LLC, Corp Etc) and what it takes to be "legit"

Thanx
#legithow #llc #start #starting
  • Profile picture of the author Eddie Titan
    AmeriLaywer.com provides a good service for an affordable price.

    They also have a lot of information posted on their website for free that can help you decide what kind of corporate entity best suits your needs.
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  • Profile picture of the author MrOfferz
    LegalZoom is fine for formulating an LLC.
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  • Profile picture of the author michaelcorvin
    You do not have to have an LLC or corporation to be "legit." If you already have a business that is up and rolling in your own personal name than it is already a sole proprietorship.

    But if you want to control the company and taxes more tightly you can setup an LLC or Corp at htt://www.bizfilings.com

    But you first need to determine what legal entity you will use as each has different tax structures....

    An LLC is a "pass through" entity...as is an S-Corp...Which means that you run income and expenses (BIG emphasis on EXPENSES) through the company and the profit or loss left over is added to your personal tax return..

    A C-Corp however has its own completely separate tax return and pays its own taxes...Not suggested unless you are more sophisticated as an investor and entrepreneur.

    Now you just need to decide WHY you think you really need one...if you will elaborate a little more on your situation that would help. I do not give legal or financial advice...but I can steer you in the right direction.

    Hope that helps..

    Michael
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    • Profile picture of the author DNChamp
      Originally Posted by michaelcorvin View Post

      You do not have to have an LLC or corporation to be "legit." If you already have a business that is up and rolling in your own personal name than it is already a sole proprietorship.

      But if you want to control the company and taxes more tightly you can setup an LLC or Corp at htt://www.bizfilings.com

      But you first need to determine what legal entity you will use as each has different tax structures....

      An LLC is a "pass through" entity...as is an S-Corp...Which means that you run income and expenses (BIG emphasis on EXPENSES) through the company and the profit or loss left over is added to your personal tax return..

      A C-Corp however has its own completely separate tax return and pays its own taxes...Not suggested unless you are more sophisticated as an investor and entrepreneur.

      Now you just need to decide WHY you think you really need one...if you will elaborate a little more on your situation that would help. I do not give legal or financial advice...but I can steer you in the right direction.

      Hope that helps..

      Michael
      Thanx..starting an SEO company that is launched now with a full website and 1 client. Want to become part of the chamber of commerce, SBA, and basically be able to have a biz where clients feel more secure that im business with all paper work in tact. LLC seems more the way IM looking into where I will add this to my reg taxes and keep records of EVRYTHING! but do just want to look at differnet options
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      • Profile picture of the author michaelcorvin
        I agree with you....I would check out BizListings.com and talk to them on the phone...they can give you good advice...an LLC is probably the way to go...Also, you need to get Robert Kiyosaki books....I do believe Loopholes of the Rich is the book that talks in-depth about corporate structures...

        It's not just about the corporate structure...but how to use that structure to build long-term wealth....

        Michael
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  • Profile picture of the author michaelcorvin
    Oops! Sorry about that...I messed up the link...they are at LLC & Incorporation | Start a Business | Incorporate Online | BizFilings - I have used them for about 12 years...great service.

    Michael
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  • Profile picture of the author onegoodman
    I personally like LegalZoom, you can get a good deal if you choose the right package.
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  • Profile picture of the author Cowlitz
    I'm always so curious why an LLC is the most popular choice of entity. I'm a big fan of an S Corp.....Check out this link for more information on an S Corp:
    expressaccounting.org/EntityChoice.aspx
    I feel as if your biggest asset protection will come from your general liability business insurance. Anyway.....to form an LLC google your specific state's Secretary of State website and find the "Application for form a limited liability company".....but that's not all. You will want to file a state master business license and a local business license for your specific city (if applicable). Finally you need to obtain an FEIN# from the IRS website. Or you can call on someone like CowlitzCorporationCompany.com for help with the filings

    I hope this helps!
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  • Profile picture of the author intgolfguru
    The easiest way is to go to your states website and search it. You can do it yourself for free its really easy. You can also setup a ein or employment i.d. in minutes all you have to do is find the link.

    What state are you in?
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    • Profile picture of the author AeroBuilders
      I made sure my LLC's that I have set up in the past were based out of Nevada (where I have homes in Vegas). This is a no state income state and no real taxes for simple LLC's.

      In Austin, TX where I live by Lake Travis most of the year we have no state income tax - but we do have Texas franchise tax (margin tax) for LLC's. I set up all my LLC's out of Nevada for this reason so do your due diligence before you do set up any LLC's.
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      • Profile picture of the author Joe Mobley
        See an attorney!

        AeroBuilders has an excellent point. Some states impose a franchise fee on sales for some types of businesses.

        And my last point... See an attorney!

        Regards,

        Joe Mobley


        Originally Posted by AeroBuilders View Post

        I made sure my LLC's that I have set up in the past were based out of Nevada (where I have homes in Vegas). This is a no state income state and no real taxes for simple LLC's.

        In Austin, TX where I live by Lake Travis most of the year we have no state income tax - but we do have Texas franchise tax (margin tax) for LLC's. I set up all my LLC's out of Nevada for this reason so do your due diligence before you do set up any LLC's.
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  • Profile picture of the author DebbieD
    When dealing with legal matters, I like to speak to an accountant or attorney face to face. I do the research first, so that I don't stand there as a complete fool... but I like discussing the pros and cons of each with a real (knowledgeable) person.
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  • Profile picture of the author Henry White
    Be prepared for another episode of "information overload" - especially if you opt to do this on the cheap with fill-in the blank forms from a DIY manual from amazon.

    You're officially shifting from employee to business owner, so that learning curve is to be expected.

    All tolled, the process took me about 3 weeks, and cost about US$550 including the online service package, registration filing to the state, DBA, EIN, and county and city licenses.

    You'll need all this before you set up your business checking account. The minimum balance required will vary, and so will the applicable transaction fees (depending on a small balance of say US$1,500 and a much deal with a higher balance of say US$5,000). They may or may not be able/willing to make electronic transfers from your personal checking account to avoid dropping below whatever balance you agree to.

    At some point you need to hire an accounting service or CPA for taxes and other financial reporting. (As you might imagine, it can get complicated too complicated, I think, to DIY.)

    And it wouldn't hurt to photocopy all these documents for your attorney to file along with your will and particularly any final instructions concerning your business in the event you are incapacitated, assume room temperature, or are abducted by ET.

    Sidebar: one thing I adapted from my restaurant days is to keep a running summary of daily/weekly/monthly profit and loss statements. It takes less than 5-minutes a day, and helps me enormously to keep track of individual products, campaigns, accounts, etc.
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  • Profile picture of the author J Bold
    All opinions are my own and I am not a lawyer or an accountant.

    From my research, S Corp is just as good as LLC and sometimes cheaper. As far as I know, it provides limited liability just like an LLC and actually allows for more flexibility for a small-time business.
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    • Profile picture of the author eliteandres
      Originally Posted by redicelander View Post

      All opinions are my own and I am not a lawyer or an accountant.

      From my research, S Corp is just as good as LLC and sometimes cheaper. As far as I know, it provides limited liability just like an LLC and actually allows for more flexibility for a small-time business.
      where did you do most of your research?
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  • Profile picture of the author Jeanne Lovely
    If money is tight you can go on your States website and look at other corporate documents that have been filed - or use one of the services above for the documents.

    You can file the corporate documents yourself or instead of a lawyer you can use an accountant. Just remember to check the laws of your State - there are States where the benefits of filing in that State are better than others
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  • Profile picture of the author DNChamp
    All good points, Im in Arizona and did some research. Saw a few online companies that will do the process for you but I feel more comfortable going direct to the office myself and just getting the paperwork. LLC seems my best choice but one point did come up that I did not think of. A business checking account and a min balance.....now another thing to worry about :p
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  • Profile picture of the author Bryan Mc
    As mentioned, LegalZoom makes it really simple. They keep track of when filings are due, and help ensure everything is done properly upon first setup.
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  • Profile picture of the author mapsey
    Go to the state you are in and file the documents. LLC is the best if you are worried about minimizing liability. S corp is better for taxes and cost if you don't care about liability. they have standard LLC and S crop organization documents you can get for free. if you need an LLC doc I will send you one for free. Simple and easy.
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    • Profile picture of the author RemingtonSteele
      Even if you file the documents with the appropriate state on your own to save money, you still need to have a registered agent, which typically costs about $100 per year.
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  • Profile picture of the author michaelcorvin
    Filing in your home state is not always the best route. I suggest you call the people at BizFilings: LLC & Incorporation | Start a Business | Incorporate Online | BizFilings and do some investigating before you pull the trigger.

    Michael
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  • Profile picture of the author milla04
    Hey DNChamp, it doesnt take much to make a company legit as you said, you just choose your state, get a registered agent in that state (unless its your own state) and file your documents, its really that simple, HOWEVER, you need to take into consideration the yearly cost of the state you pick. What i mean are the annual fees such as "would you need to pay franchise fees, corporate tax fees etc.. I live in the UK and i formed an entity in New Mexico where I wont need to pay any yearly fees AT ALL, NOTHING, the only fee i would have to pay is for a registered agent, oh BTW i paid $150 for 5 years so i dont need to worry about that, you can do the same too.

    All the best
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