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I'd say yes -- now.
Fem , Yes it would be a good idea. Tell us more. Do you have a Federal I D Number??
How about an Accountant?? A Lawyer?? Do you know about SCORE??
Good luck, LUCKIEST
Hi Luckiest! I do not have any of those resources right now and honestly I do not have much in the way of capital to be able to hire professionals. Is there a safe way to do it myself? I was thinking of using LegalZoom.com for my LLC and they will also help you get a Federal ID number. What do you think?
You can go online and get an employer ID number. I would not use LegalZoom until I had some good solid advice on WHAT kind of entity you would want to be. Cliff Ennico (www.cliffennico.com) has a website that has a lot of good answers, Check that out and get his book Small Business Survival Guide.
Spending money on getting advice is not what you want to hear right now...but if you do it wrong then the price is higher in the future.
Fem, Thanks for sharing. Everybody in business needs an Accountant, a Lawyer and maybe an Insurance agent.
That does NOT mean BIG professional fees NOW. Part of Making Money in business is Spending Money.
Sometimes just having the professional on retainer can save you big time.
I am a Quickbooks consultant and would like to talk to you (FREE). You can email me at " firstname.lastname@example.org ".
Finally, you can get a Federal I D Number (also FREE) at "irs.gov"
Good luck, LUCKIEST
You need to discuss this wtth a tax professional. Things can change... for example we stared out as an S corp, and changed our election to a C corp. It all depends on what you are doing....you can always make changes later. Nothing is set in stone.
Most state Department of States (DOS) have useful guides to understanding how to form an LLC.
They also outlines the fees associated with such an entity change.
I would suggest reviewing those guides before making any decisions.
To reinforce several other posts, you can get a federal Employee ID on-line yourself, and work with any number of "incorporation stores" to set up a corporation fairly easily. If you have money for professional advice on your start-up efforts, seek it. If you don't, you can start out like 95% of the small businesses in the U.S. -- file a DBA with your county clerk to open as a sole proprietorship, get an EIN on line, open a bank account, and you're in business (because you don't really have to worry about getting sued if you don't have any money or assets anyway -- and when you DO have money, you can form a corporation).
Wow a new business congrats. First, a sole proprietorship should suffice its straight forward and will kick off a new venture nicely.. one thing that is paramount is to have some good accounting skills because your partner wants to get paid too! (IRS) (STATE SALES AND USE TAXES/INCOME)ETC they really become a pest if your not doing your part (REPORTING). I suggest a BOP call your trusted trade association and get a policy that understands your particular industry if possible, your local insurance agent is also a good information source.Next make sure that you have a healthy appetite (BILLING) even the smallest of businesses need to make a profit and the smallest amounts of billings are profits. I don't want to over stress but keep you book keeping simple income into business account/disbursements properly recorded you will appreciate this in the long run.1 of 1 people found this helpful
2008, Welcome to the B of A website. Great answer to the question. What is your background??
Looking forward to reading more of your posts in 2008.
It depends. You should consult with a business attorney and business accountant in your state and discuss your options with them. And the question should not be 'LLC or no LLC?', as do-it-yourselfers always ask (which is one reason LegalZoom and similar services are 'dangerous' - they'll never ask why you're forming a standard LLC instead of an LLC taxed as an S corporation, an S corporation, or C corporation and are of course prohibited by law from providing such advice); instead, it should be 'entity now, later, or never, and if so, what kind of entity and why?' Do it yourselfers miss many of the tax benefits because they don't explore the entity options available with their tax advisor, and then miss much of the limited liabilty protection, because their online incorporation service entities are almost never set up and maintained properly, with custom articles, bylaws/operating agreements properly implemented, shares/ownership interests actually issued, managers/directors/officers appointed or elected, first meeting minutes documented, state/federal securities regulations complied with, state/local business tax/license/employer registrations completed, etc.
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Hello there! I started a resource and community site on December 14th and it's already up to 500 visitors a day. I'm still exhilirated to have thought of a potentially very successful idea. I'm here to ask about LLCs. Should I form one for my business, since I am selling ad space? It will take quite a while for it to turn a profit, but I don't want my family to suffer if someone decides to sue me for something. If not now, then when?