ForumsHome

thanks for answer , its really helpful .

But not clear on operating agreement

Do i need to send it to SS or to irs ?

and about the tax , as per your answer by default my llC will tax as "disregarded entity " and if u need want to taxe differently i have to elect it , here is my question

When and how can i elect ? does it in procees of formation LLC or its any time after.

Thanks again

As for your LLC operating agreement, no, you don't file it with the state. So why write one, you might be asking? It contains the rules for how your business is operated. Most agreement spell out:

• member percentage interests in the LLC
• member rights and responsibilities
• member voting powers
• how profits and losses will be allocated
• how the LLC will be managed
• rules for holding meetings and taking votes
• buyout and buy-sell provisions.

If your operating agreement doesn't cover something, then state law will apply -- in other words, the state will decide how things are handled instead of you. Also, the operating agreement spells out the procedures that (if followed) will prove that the LLC is functioning as a separate legal entity -- rather than just an extension of you personally. This is important to protect the limited liability status of the company.

I hope that explains it. There a decent book by Anthony Mancuso called Your Limited Liability Company: An Operating Guide -- it's not Texas-specific, but if all this LLC stuff is new to you, it might be worth looking at.

Best wishes.

Why Texas? Business laws are not to be misunderstood, if you don't have an attorney you should get one. Look up our website and we may be able to suggest a different way to go for your business.

I hope this information helps.

1) You can have a single member LLC
2) addresses can be the same
3) Registered Agent is the person authorized to accept legal notice for your company. Yes you need to designate one. It can be you. It can be the same address.
4) You will need to pay taxes on the income you generate. The amount/type will vary based on circumstances. In general, payroll taxes (FICA, etc.) and unemployment. I do not know about TX specific. The IRS site is very helpful. Part depends on how you elect to be taxed - as a sole proprietorship or as a corporation. You will need to determine this. If you elect to be taxed as a copr. I would suggest also making a "S: corp. election (see many post on the subject of LLC tax elections).
5) Veil piercing or "Piercing the Corporate Veil" refers to potential liability. People set up corps. and LLCs to protect their personal assets in case the company is involved in a lawsuit or has some type of liability. The corporation is its "own" legal person. The "veil" can be peirced if it can be shown that the person and the business was one in the same; i.e. comingling bank accounts, no proper operating agreements in place, etc.

So, yes, you do need an operating agreement and get a seperate bank account and credit card for your new business. Pay all business expenses from this account.

You will need to determine your own funding requirements.

Hope this helps.
Greg

I've always avoided single member LLCs. you may want to look into filing form 8832 with the IRS so they treat you as a corporate entity, otherwise you will may be considered a diregarded entity and taxed like a sole prop. Read this article on single member LLCs. The author wrote Limited Liability Companes for Dummies. http://www.myllc.com/single-Member-LLC.aspx