Llc

[LIL EVO]

Can anyone who started their own LLC walk me through the process?

Like A, B, C, then D...

I found the site to do it all online for $130.

Secondly, would it even be worth starting a single member LLC vs. claiming all the extra income I would make as an individual and just paying taxes on that income at the end of the year.

I still have a full time job with a paycheck so technically I wouldn't need to be paid from the LLC, yet.

I realize there are deductions with an LLC, but do the other taxes outweigh the benefit? Where is the "break even" point of individual vs LLC?

[Yooformula]

went online to fill out the papers then spoke with our family attorney who then set us up with the state and got our fein number. I got the LLC to help with deductions with starting the business then to also be able to carry full coverage insurance for everything related to the business and not worry about personal vs business. It was much easier to hand our attorney an excel sheet with everything listed for them to use for our taxes and it worked out very well in the end. My startup costs and expenses were too high to NOT deduct on a business sheet.

online - state of Wisconsin dept of financial institutions to draft articles of organization - LLC. filed it and paid $130

went to irs.gov and applied for EIN with our legal name after drafting member's agreement for the LLC.

had attorney look it over to make sure we had everything we needed then contacted small business insurance( west bend mutual - Jay Gumieny 262-781-2360)

[LIL EVO]

And if there is no major startup costs or expenses? And if insurance or customer loss isn't really an issue?

[DRK]

And if insurance or customer loss isn't really an issue?

I wouldn't involve the gov. if ins. isn't a factor

[Cryptic]

It's like 1 form if I remember correctly.

Are you sure a "Sole Proprietorship" isn't a better route? You should make sure you understand the differences. I got an accountant to help me setup. It wasn't expensive, it's their opportunity to establish a business relationship with you, so they want to help you. If your in business, they're in business.

[fivonut]

If your the only member of the LLC it's considered a "disregarded entity" and you file your taxes on a schedule C just like you would as a sole proprietor. A multiple member LLC has the option to file like a partnership or a corporation. I am the only member in my LLC so my taxes this year were filed just like I was a sole proprietor.

Use the business website to organize the LLC

If you plan to resell get your EIN then get your sellers permit.

[Cryptic]

If your the only member of the LLC it's considered a "disregarded entity" and you file your taxes on a schedule C just like you would as a sole proprietor. A multiple member LLC has the option to file like a partnership or a corporation. I am the only member in my LLC so my taxes this year were filed just like I was a sole proprietor.

Use the business website to organize the LLC

If you plan to resell get your EIN then get your sellers permit.


^ Yeah that sounds familiar

[LIL EVO]

I guess an accountant would be the best bet. Let them figure it out.

Any idea what a decent rate is for them to deal with me as an ongoing thing and all my tax paperwork, income, deductions, and expenses at the end of the year?

[Yooformula]

mine charged me $300 for several visits with setup and I paid $130 to the state for paperwork. I could have skipped the visits but wanted to make sure everything was on the up & up plus the fee would be deducted at the end of the year anyways.

As far as taxes were concerned, for the year it was only $150(married, house, kids, a ton of deductions plus business). It was worth it for the first year to make sure I didnt make any mistakes but from here on in, I will continue to do my own taxes just making sure to setup a small fund to pay the taxes out of quarterly.

[LIL EVO]

Well, one CPA told me to sign up for a few startup business classes at WCTC and that she would be available towards the end of April if I wanted to discuss further.

[LIL EVO]

Is it possible to set this up as a "DBA" instead of an llc?

[Cryptic]

LLC is a legal structure that might help protect your personal assets if your business gets sued. ... DBA is not.

DBA is Doing Business As anything but your legal name.

[LIL EVO]

So let's say the end of the year rolls around, for calculation sake, let's say I made $20,000 in gross sales. Since paypal is now providing 1099 forms to the IRS for more than 20K gross transactions per year, the IRS now knows about all ebay/paypal sales.

$5,000 in business expenses related to parts, shipping cost, shipping supplies, etc. So there is net income of $15,000.

Keep in mind that I would also be looking for deductions such as home office, home utilities, partial homeowners insurance, some mileage related to business, accounting fees, supplies, cost of shipping, ebay/paypal fees, maybe even health insurance premiums, etc.

With this situation, would I be better off filing this all as an individual, DBA, LLC, or? Can I deduct all of the above if im NOT an LLC?

I just don't want to be screwed come tax time because I didn't do something NOW that I should have.

[Cryptic]

An excellent question for an accountant. In my experience they refrain from giving you legal advice. But advising you on where you can benefit the most tax wise should be up there alley or they aint worth a shit IMO

[fivonut]

An excellent question for an accountant. In my experience they refrain from giving you legal advice. But advising you on where you can benefit the most tax wise should be up there alley or they aint worth a shit IMO

My best guess is that you'd file the same for all three. Remember what I said before about a single member LLC filing like a sole proprietor. DBA is pretty much the same thing as a sole proprietor. But, like Cryptic said that's a damn good question for an accountant.