Ask MetaFilter questions tagged with llc

DIY LLC in NY

meeotch — Wed, 16 Sep 2009 21:55:06 -0800

Has anyone successfully performed do-it-yourself LLC formation in New York (NYC)? Personal experiences with any kits or (especially) free templates that are out there? I've seen the Nolo site, as well as the stuff at ilrg.com To my eye, it definitely looks like the kind of thing you can do on your own, particularly if you're just one person, and not a partnership. (I do have a lawyer, and an accountant, and I will consult them - so please hold those sort of comments.) I'm looking for personal experiences here, and intend to get to the point where I feel I feel competent before putting myself in the hands of expensive professionals.

How to choose an accountant.

thebestsophist — Thu, 16 Jul 2009 18:25:10 -0800

I am looking for a good accountant in the Milwaukee, WI area. I am starting a two-person LLC, any tips on either what to look for in an accountant or know of good ones in the area?

Advice on forming a mostly online-based LLC while not having a stable physical location?

Poleris — Tue, 12 May 2009 00:13:50 -0800

Advice on forming a mostly online-based LLC while not having a stable physical location? Hi all,

My situation is this:
* I have several websites that are starting to generate revenue via subscription models.
* I would like to form an LLC to shelter myself from legal liability.
* I need to choose a state to incorporate it.
* I'd love to incorporate in my 'home state,' but I don't really have one. I usually move every year or so.

My objectives are:
* Simplify the process as much as possible. I hate filing forms and dealing with legal hassles.
* Pay as little income tax as legally possible.

So my questions are:
* Do you have any advice on where to incorporate?
* Given the virtual nature of my business, in what states would I be considered to have a "nexus," and thus have to file taxes? (Paid) subscribers will be from every state.
* Do any of you have thoughts or anecdotes on the Vermont Virtual Corporation?
* Do you have any recommendations on books I can read to give myself a better background?

Thank you!

LLC for freelancing?

the matching mole — Sat, 18 Apr 2009 18:53:30 -0800

How do I prepare myself for freelancing with regard to taxes? I intend to start doing freelance web design and hosting work, and want to set myself up properly for tax purposes. But I have no idea what I need to do.

I won't be doing work outside of my state (I'm in the US), if that matters. But I will need to purchase software and whatnot for the work and would like to be able to expense it.

Should I incorporate or form an LLC? Or something else? Are there any good books on the topic? Please advise, freelancing mefiers!

Do I need to file?

Brennus — Wed, 15 Apr 2009 06:49:34 -0800

Taxfilter: I'm a partner in a Pennsylvania LLC. I filed final returns for both state and federal last year but never got around to dissolving the LLC. Do I have to file again this year? You are not my tax lawyer/CPA. The LLC has not had any transactions for several years so I am not planning on consulting a tax professional. Does filing a final return (f1065 for federal) mean I do not have to file the following year if the LLC still exists? I think it does, but with it being the last possible day today I just wanted to see if anybody thinks otherwise.

How do I start an S-Corp/LLC in NYC?

helios410 — Mon, 13 Apr 2009 20:21:54 -0800

I have to start up an LLC or S-Corp. How do I begin this process? Also, if you have experience with a good accountant in NYC who is familiar with this process, care to pass a recommendation? I freelance in NYC for two cable networks under the MTV umbrella. MTV has just implemented a nine month work limit for freelancers. Once nine months is reached, three months time must pass before being hired again.

In order for me to get around this I need to start an LLC or S-Corp, so I can bill them as a company. So I ask:

1) What are the tax implications and associated costs in NYC to do this?

2) Can you recommend an accountant to help me along?

Thanks!

Help me keep my IP

Quazie — Mon, 23 Mar 2009 18:12:46 -0800

I have some personal IP and I don't want the large corporation I'm about to be employed by to own it, what are my options? I have written some pretty interesting iPhone apps, and have a variety of prototypes of ideas that I have implemented. I want to continue to work on these even after I am employed, and as such I don't want the large corporation to own my IP.

My initial idea includes setting up a LLC, but I'm unsure if this is the best option. Currently I'm not making any money on my apps, but in the near future I do plan on selling my applications on the app store and perhaps doing some other coding that could result in pay.

I know that YANML, and very likely YANAL, but i'm just looking for what paths I should investigate. Thanks.

Should I file IRS Form 8832?

ellenaim — Sun, 15 Mar 2009 18:30:15 -0800

TaxFilter: Any reason not to file IRS form 8832 for my LLC to be treated as a corp? Need to decide soon. You are not my accountant... I'll be getting one soon, but apparently not soon enough.

I incorporated at the end of 2008 but didn't earn any income until mid-January of this year. So for 2008 taxes, being treated as a "pass-thru" entity is no big deal. I was going to wait until tax season ended before finding an accountant to sort everything out for 2009, but I just realized that in order to be taxed as a corporation for this year I need to file form 8832 by (oh crap) tomorrow March 16. Form 8832 can be filed up to 75 days after the date it is to be effective, and tomorrow is day 75 of 2009.

Generally I file my individual taxes as married filing jointly and expect 2009 total income in the 28% bracket (either with or without including the LLC's income). Being taxed as a corp would bring the tax rate down for the income earned by the LLC. I expect the LLC to earn $75K or less.

Yes, it's my own fault for not talking to an accountant sooner. But is there any reason I shouldn't fill this form out and send it tomorrow? Am I missing something?

Do I need a LLC to protect myself from torts?

LC — Sun, 22 Feb 2009 12:28:23 -0800

I am preparing for my first business. Its a pedal-powered smoothie stand for my local farmers market. I'd like to allow customers to pedal their own smoothies while protecting myself from lawsuits (ex: customer sprains ankle while stepping off bike, or has a heart attack). Question 1: At first I thought I could just be a sole proprietor. I'm 20 years old and have less than $5,000 of assets someone could take, BUT I'm still claimed as a dependent on my mother's taxes. Does my dependent status allow a prosecutor to go after her assets as well?

Question 2: How would an LLC protect me in this situation? I understand an LLC is a separate entity from me, could that veil be easily penetrated? Why do personal trainers have fitness insurance and have their clients sign a waver saying that they understand the health risks involved with moving around and sweating? I don't want to have my customers sign a piece of paper before pedaling for 15 seconds.

Question 3: Should I consider having commercial insurance?

My smoothie stand will be in Maryland if that helps adapt your answers.

Small mobile development start up looking for advice on becoming an LLC and paying freelacers.

drkrdglo — Fri, 30 Jan 2009 12:57:12 -0800

Small mobile development start up looking for advice on becoming an LLC and paying freelacers. A couple friends and I have been working on a mobile application development project for quite some time. We're now looking into incorporating into an LLC (for obvious financial and legal reasons). I know there are a ton of websites out there to help facilitate the process of forming an LLC, so I was wondering what you folks thought of those websites -- helpful or a total rip-off? We were looking into Incorporate.com -- does anyone have experience with this website? I know there are also government based small business sites, but can they provide us with the complete experience (ie: pre-filled legal documents) like Incorporate.com can? If so, can you provide any resources you might have used?

Also along the lines of kicking off the project, we're in the midst of hiring a freelancer to code the app for us. He has requested that we pay him $100 upfront, essentially for collateral, which makes sense. From our phone conversations he seems like a good guy and he has some great reviews on MacYenta.com (developer forum), but I just wanted to see your insight or how you go about paying freelancers. Unfortunately for us, he's in Canada and we're in the US, so I'm not sure how much that plays into anything. Have any of you folks found a decent way to pay e-freelancers (eg: some sort of escrow site with a low fee, etc), or is the best solution still Paypal?

Thanks in advance for all your advice!

Good accountant for a small LLC in the Chicago area?

korpios — Sun, 18 Jan 2009 20:16:23 -0800

I'm looking to start an LLC in the near future (as I'd like to start doing web development as a part-time business beyond my day job); considering that my taxes are about to get a bit more complicated, I'd like to find a decent small-business accountant in the Chicago area. Any suggestions? For my personal taxes, I've continued to make use of the same accountant(s) for the past few years; they're back in New York, though, and I haven't lived in NY for a few years now. Besides the matter of the LLC, it's probably about time anyway to find a local replacement to use after I file for 2008.

I have indeed seen this post from 2005, but it only received one reply. Might 2009 bring any more tips? :-) FWIW, I'm trying to do this on a shoestring (since web development doesn't really have much in the way of "startup" costs); just seeing the Illinois $500 LLC registration fee made me wince! (Sadly, it's the most expensive state for creating an LLC in the nation.) I'm trying to go as far as I can on my own with the Nolo books, but an accountant's advice just seems prudent at this point.

Bobs LLC dba FrankFurters

cavalier — Mon, 05 Jan 2009 10:56:45 -0800

LLC d/b/a BBQ. Let's say I incorporate as "cavalierisawesome lol LLC". I then make a business card that says "Bob's Consulting". When I do business, the bills are settled to "cavalierisawesome lol llc". Can I market or advertise my services in a name separate from my incorporated name? The webs fail me, so I turn to the Ask.Mefi gods. Let's set a few ground rules:

1) I'm assuming I need to file a d/b/a for any name I put on business cards, websites, etcetera. I'd just love to be a little more informed before I start soliciting esquires.

2) This is not a case of wanting to change the business name every month, but more rather; I don't know what the hell I want to call the business yet, but I'm getting bites to do work. So I'd like to incorporate now, and then later use a different name for more established collateral/branding.

3) I'm certainly not trying to co-opt or otherwise take someone's trademarked, lovable name. See #2.

sole proprietor to LLC in California

supermedusa — Wed, 20 Aug 2008 15:17:33 -0800

Experiencing turning a sole proprietorship into an LLC in California? I am definitely planning to make this switch, for liability protection reasons. I am looking at Nolo Press Online California LLC and this website as possible ways to accomplish this. Have you used these or some other method to transfer a sole proprietorship into an LLC in California? Do you recommend one package or outfit over another? Did you feel that the switch was worthwhile tax-wise etc., oops that is too many questions! thanks!!

How to evaluate potential employment at an LLC

doriangray — Tue, 29 Jul 2008 12:30:19 -0800

What would you recommend be considered when applying to work for an LLC (as opposed to a corporation)? LLCs are fairly new on the business scene and I have relatively little first hand experience with them. Is there a brief overview of how LLCs compare to corporations (with respect to what it's like to work at one) available online? In particular, what aspects of the organization should be collected and considered during the application and interview process?

Doing Business Internationally

curiousleo — Fri, 11 Jul 2008 08:44:37 -0800

Doing business in foreign country... Should I LLC it in U.S.? Other CPA questions. I will be talking to my CPA next week, but would like to do think over few things during the weekend.

I am about to buy 50% share of a consultancy firm, X, in Japan.
In Japan, I will be an official 50% owner as a foreigner. I will be paying what ever the taxes in that country for what ever I earn from there.

The question is what to do in U.S. since I am an American.
I will be reporting my earnings in Japan in US also.. but my understanding is that I wouldn't have to pay US tax since I already paid Japan tax. (am i right? how do i prove this to irs?)

Also... would it be better to setup X-USA, LLC so that I can report my X-USA expenses to U.S.? (airline fee, hotels will not be reimbursed from X-Japan.

It looks like the X-Japan will pay my earnings to my self, Jack Smith, instead of X-USA, LLC. It won't matter to me since X-USA, LLC is basically me.

But... since X-Japan will pay to Jack Smith's personal account in Japan, How do i report to IRS in U.S. that X-USA, LLC is actually the one who got the earnings. (or does it matter if a check is issue to Jack Smith or X-USA, LLC ? ((which is 100% owned by Jack Smith)))

The X-USA, LLC will probably never earn anything in U.S.

After this reading, I would take any thoughts and suggestions.

**note: I could possibly not create any LLC and just use my own personal accounts and personal names to do this business....

No business taxes?

healthyliving — Wed, 21 May 2008 15:50:54 -0800

Is it true that if you have a business in New Hampshire or Nevada, there are less (or no) taxes than in California. Are other states like this, if so, which ones? Share your experience or direct me to a succinct, layperson site to understanding this. Thanks.

TurboTax not giving credit for taxes already paid

doomtop — Sun, 13 Apr 2008 09:17:11 -0800

TurboTaxFilter: Trying to figure out where to enter "Nonresident's share of net tax paid by the manager of the partnership" for a North Carolina return using TurboxTax 2007 Home & Business My wife and I live in Vermont, but need to file a non-resident return for North Carolina this year due to W-2 income she was receiving as a consultant to a business in NC.

Additionally, she is a partner of an LLC based in North Carolina.

Her share of the taxes incurred by the LLC were paid by the manager of the partnership. This payment should appear on the NC return on Line 20c.

However, I cannot for the life of me find where in TurboTax to enter this payment! This makes the difference on the return between having to pay or getting money refunded.

If there are any masters of TurboTax on MeFi - please help!!!

Multiple LLC / Joint Effort Question

mehum — Mon, 07 Apr 2008 07:08:01 -0800

Can two LLCs work together on a joint venture without forming a third? A friend and I (both software developers) are considering an online business venture, and the original thought was to form an LLC under which to do this work. However, having both considered forming LLCs of our own in the past for various side projects, we are wondering now if it would be possible for us to each form our own LLC and have this new venture be a joint effort of the two companies. This would allow us to each pursue individual freelance work on our own and have our own companies in place to handle it. So is this possible without forming a third LLC owned by the two individual ones? And if so, how would financial issues, such as receiving a payment from a client, be handled (i.e. who is the check written to)?

Or are we better off just forming a single LLC between the two of us for this venture, and each forming our own separate LLCs for our personal projects? (or each forming our own LLCs and then forming a third owned by the two?)

Alternatively, if an LLC is owned by two individuals with a 50/50 distribution, and one individual has the opportunity to do a solo side-project, can it be done under the LLC without the profits being split?

What are the implications of buying an existing LLC in Massachusetts?

pikaboy202 — Thu, 17 Jan 2008 17:48:34 -0800

What are the implications of buying an existing LLC in Massachusetts? I'm currently thinking of buying an existing law practice (LLC) in Massachusetts. The previous owner is a friend of mine and she wants to sell it to me.

She's going to close down all operating and IOLTA accounts before transferring it to me. She also rents an office space which I hope will be re-leased by the time I take it over in March. If not, as the new member/manger of an old LLC, am I responsible for the lease? I do not want to take over the lease since I have my own separate office space.

Am I responsible for any malpractice she might have committed while she was the member? What other things should I consider before doing this?

Can you recommend an accountant in Austin?

medpt — Tue, 11 Dec 2007 09:44:07 -0800

Can you recommend an accountant in Austin? I'm looking for a good accountant for my small software development LLC.

Multitasking CPA?

Eringatang — Sat, 01 Dec 2007 15:12:15 -0800

I am looking for a person/firm in southeastern Michigan who will do a great job preparing my personal income taxes (including small business expenses) AND file an LLC for me. The more work they can do (and the less leg work I have to do), the better. If you have a personal recommendation, please share! If you would be willing to tell me about rates, you can send me a mefimail. Thanks!

LLC income distribution

docpops — Mon, 19 Nov 2007 17:19:22 -0800

Help me make this LLC fair when it comes to income distribution... First: I know no one here is an accountant. I have one. I have an attorney. But I also value the individual thoughts of the Community, as it were.

Scenario:
Person A and B jointly form an LLC that makes custom jewelry, and quickly start making decent money (i.e., a thousand or so in profit per month after expenses and improving).

Person B likes to make purchases of a personal nature on the LLC account. Said purchases are likely to pass the sniff test as far as being for business use (even though they are personal, i.e. clothes, occasional decorative items).

Person A is married to a doc and they make enough money and are cautious enough that pulling money out of the LLC for personal items that can be passed off as business expenses is not in her interest. She's rather not tempt an audit. She'd rather have cash. But it's also become the norm for Person B to buy Person A the same thing each time she gets herself something, for reasons I suspect have to do with trying to assuage a bit of a guilty conscience. Person A also doesn't necessarily find appealing what Person B thinks is. Etc.

So there's this elephant in the room. Person A can't get Person B to understand, using gentle, oblique language, that she doesn't want to spend money on these things, but isn't sure what scenario to propose. Since I'm married to Person A and Person B wants me to stay out of their affairs, but since my income tax statement is tied to the LLC, I feel I need to get involved.

Question:

How does one resolve this?
Let's assume that the purchases are legitimate, but that certain purchases are for joint use (metal supplies) and others are individual (a cell phone, a dress for a big jewelry show). How does one make it equitable?

My suggestion:
Let person B spend the money on "stuff" that is for personal use and not jointly needed by the LLC for operations.
Person A then takes an equal amount of money out as cash and declares it as income.

Does this make sense?

Thanks in advance.

Where should I register my company?

mateuslee — Tue, 09 Oct 2007 03:57:08 -0800

I'm going to register my company as an LLC. My next question is where? Which US state is the best for this?
I posted a Q here a few weeks ago, and you guys really helped me out (thanks!)

http://ask.metafilter.com/70013/A-new-business

I'm now curious about where you think I will be taxed the least and deal with minimal hassles. I heard good things about WY, NV, and AL - but a google search reveals only adverts and little data.

I think I can register in any state I choose to and the process of becoming an LLC seems like something I can do myself just via a state's website. If you have any experience with this, please share it. I'm really a newbie. Bonus points if you can indicate a trustworthy accountant in the state who can file taxes for the company once formed and do any legwork that I can't do myself. Cronyism/nepotism ok.

Thanks a lot!

Starting a company in a State different than my own?

stance — Thu, 12 Jul 2007 09:51:43 -0800

Starting a company (LLC) in a State different than my own? I have just another one of those websites that has members that can communicate with one another, post stuff, etc., so I assume it's a good idea to register officially as an LLC to protect myself a bit legally.

I was looking into local rates and we're talking $500 in Illinois, but while I was browsing, I noticed that it's possible to register in another state. Some sites suggested Delaware because of it's cheap registration AND because Delaware has good corporate law. Because it's a web-based endeavor, and because there's no "primary place of business," this could be a good idea, right?

Is there any reason not to form a business in another State?

My wifes home health care business is an LLC so does that mean all our personal assets are protected?

qsysopr — Sat, 16 Jun 2007 04:56:22 -0800

My wife owns a home health care business with some other nurses and she says that because it's a LLC, our home, 401k, and other personal assets are safe from being used in a judgement. Is it that simple? My wife who's been an RN for many years, has never even had nurses liability insurance (and still doesn't) so I'm not sure if she understands what her personal risks are as a nurse.