Llc Questions

Business By CakesbyMichele Updated 15 Nov 2010 , 7:27pm by indydebi

CakesbyMichele Posted 14 Nov 2010 , 12:59am
post #1 of 16

I'm a one woman show that rents kitchen space. The hubby really wants to protect personal assets so wants a LLC in place. Is this the best route for me? Only route for protecting personal assets? From what I read on line, it seems like a couple page form for filing the articles of organization with the state but, of course, hubby found all this other stuff that he thinks is needed for LLC (EIN, tax info, employee info etc). Does anyone know what you need to get the LLC in place - just the Art. of Org (plus publishing since i'm in NY) or is there a bunch of other forms too? Thanks for the help. This is very confusing. I'm thinking of going lawyer route but don't want pay them if it's just a 2 page form. Michele

15 replies
pinkpiggie78 Posted 14 Nov 2010 , 1:26am
post #2 of 16

I am in VA and am an LLC. I filed with the State Corp Comission in VA and got an EIN online... took about 10 minutes. From a tax perspective, since you are a single person LLC, you report your income like you are a sole prop. State tax might be a bit different.

To save attorney fees, you should look into your local small business development center... they should be able to help you for free/less than an attorney.

playingwithsugar Posted 14 Nov 2010 , 1:29am
post #3 of 16

You can get your EIN via telephone M-F during regular business hours.

Call

1-800-829-4933

Theresa icon_smile.gif

costumeczar Posted 14 Nov 2010 , 2:43am
post #4 of 16

I filed my LLC through legalzoom dot com, it was really easy. If you choose to file your LLC income taxes as a disregarded entity then your income just goes on the regular schedule C business income that you file with your personal income taxes.

If this is really confusing to you then you should definitely get some professional help with it.

indydebi Posted 14 Nov 2010 , 8:36am
post #5 of 16

You definitely can do all of this yourself, but I'll tell ya .... I slept MUCH easier knowing I had an attorney take care of it, researching the company name, filing EVERYTHING that needed filing (not just LLC paperwork ... lots of other stuff).

Martha Stewart said, "If you think you're saving money by NOT talking to a lawyer at the front end .... you'll pay for it at the back end."

lyndya Posted 14 Nov 2010 , 11:52am
post #6 of 16

I agree, it may seem easy to do it yourself, but an attorney experienced in business law/tax will make sure everything is done properly and thoroughly. I am a prosecutor, however because of my zero experience in business law, hired an attorney to handle my LLC.

pattycakesnj Posted 14 Nov 2010 , 11:53am
post #7 of 16

To totally protect yourself, get the LLC filed (very easy to do online thru your state's website which should then pop you over to the IRS to get the EIN ), takes about 15 minutes total. As a LLC, you file your income tax on a schedule C with your personal taxes. Then get insurance. You need both to completely protect your assets.

costumeczar Posted 14 Nov 2010 , 12:44pm
post #8 of 16
Quote:
Originally Posted by indydebi


Martha Stewart said, "If you think you're saving money by NOT talking to a lawyer at the front end .... you'll pay for it at the back end."




Well, she should know, hahaha! Although I don't know if I would want to take legal advice from her in general...

indydebi Posted 14 Nov 2010 , 1:17pm
post #9 of 16
Quote:
Originally Posted by costumeczar

Quote:
Originally Posted by indydebi


Martha Stewart said, "If you think you're saving money by NOT talking to a lawyer at the front end .... you'll pay for it at the back end."



Well, she should know, hahaha! Although I don't know if I would want to take legal advice from her in general...


icon_lol.gificon_lol.gif but I tend to listen to people who have achieved BILLIONaire status! icon_lol.gif

costumeczar Posted 14 Nov 2010 , 1:19pm
post #10 of 16
Quote:
Originally Posted by indydebi

Quote:
Originally Posted by costumeczar

Quote:
Originally Posted by indydebi


Martha Stewart said, "If you think you're saving money by NOT talking to a lawyer at the front end .... you'll pay for it at the back end."



Well, she should know, hahaha! Although I don't know if I would want to take legal advice from her in general...

icon_lol.gificon_lol.gif but I tend to listen to people who have achieved BILLIONaire status! icon_lol.gif




I prefer the billionaries who haven't spent time in an orange jumpsuit, though! icon_wink.gif

jason_kraft Posted 14 Nov 2010 , 3:49pm
post #11 of 16

Once you create your LLC, make sure to keep business activities and funds separate from your personal finances. If you do not treat the LLC as a separate entity, you can lose LLC protection.

More info:
http://www.llc-made-easy.com/piercing-the-corporate-veil.html

costumeczar Posted 14 Nov 2010 , 6:25pm
post #12 of 16
Quote:
Originally Posted by jasonkraft

Once you create your LLC, make sure to keep business activities and funds separate from your personal finances. If you do not treat the LLC as a separate entity, you can lose LLC protection.

More info:
http://www.llc-made-easy.com/piercing-the-corporate-veil.html





That's the hardest part! Be careful!

hollyml Posted 15 Nov 2010 , 8:43am
post #13 of 16

"Is this the best route for me?" is a question best answered by consulting a lawyer in your own state. (Or possibly a small business tax accountant.)

The actual process of forming the LLC is pretty simple, and if you go to a lawyer, chances are the paperwork will be largely handled by a paralegal or legal assistant, so you're not going to pay the lawyer's rate for filling out the Secretary of State forms. But there's more to it than filling out the paperwork, in terms of making sure you have done everything you should do to protect your personal assets from your business liabilities.

Many small business lawyers will offer you a flat fee for forming the business, and advising you on every step you need to take. And it is VERY true that not paying legal fees up front, when you're starting just about any kind of business venture, is all too often a false economy. I am a paralegal and I can't tell you how often my firm ends up charging FAR more for handling a lawsuit because the client thought he didn't need a lawyer to help write the contract!

indydebi Posted 15 Nov 2010 , 10:06am
post #14 of 16
Quote:
Originally Posted by hollyml

I can't tell you how often my firm ends up charging FAR more for handling a lawsuit because the client thought he didn't need a lawyer to help write the contract!


Oh this is a good point, too! I see a lot of folks on here writing their own contracts ... granted, many are modeled after existing ones .... but sometimes a word here or there just doesn't mean the same in different states (i.e. "deposit" vs. "retainer"). So when my attorney did the LLC, I had him look over my contract and I felt very confident having an attorney-approved legal document!

tracycakes Posted 15 Nov 2010 , 7:20pm
post #15 of 16

We went the LLC route and thought we were all done. We talked to a lawyer to finalize some things and found out about some other forms that were required to be an LLC. Talk to a lawyer. Best advice I can give.

indydebi Posted 15 Nov 2010 , 7:27pm
post #16 of 16
Quote:
Originally Posted by tracycakes

We went the LLC route and thought we were all done. We talked to a lawyer to finalize some things and found out about some other forms that were required to be an LLC. Talk to a lawyer. Best advice I can give.


that's what I'm sayin'! thumbs_up.gif

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