Posts by George Wilson4

It really all boils down to the industry you're looking at... in something like hospitality, it’s practically impossible to avoid... anyone opting for that career path ought to go in with their eyes wide open...

For me, my hours always seem to creep up toward 60... which isn't exactly ideal either... ideally, we'd be looking at 45—maybe 50 at most.

No.

CNN doesn't charge any fees for their services. It essentially means they’re free—whether you decide to set up your business through them or just handle the paperwork yourself. The only real advantage is that you don't have to spend your days running back and forth between the courthouse and the IRS; they take care of all those administrative headaches for you.

But honestly, I don't see what the big deal is? Even if you tackle the whole process on your own, it moves pretty quickly and isn't exactly rocket science. You might lose a few hours here and there—maybe three or four separate sessions of an hour or two—and then you're all set...

Since when did businesses start footing the bill for monument rent and those kinds of fees? As far as I can tell, that's usually something companies handle on their own...

Your business name needs to be official;

It has to be in English or Latin, and you’ll need to provide a justification for it. If you’re using personal names, they have to belong to an immediate family member, and there are plenty of other little rules to navigate. Your best bet? Give Swift a call so they can run a check for you. Or, if you really want to be thorough, call the clerk at the local courthouse who works directly under the judge handling new business registrations. Basically, first check the availability on the Secretary of State website, then double-check with the court itself—sometimes they'll reject a name because it's too similar to something already registered.

I already touched on how US domain names work above, but regarding .com domains, you don't actually need to own a company to buy one. In fact, the domain name doesn't even have to match your legal business name.

You could technically register your LLC as Henry Moore2 LLC and still use CrazyCabbages.com as your web address. If you end up selling products through that site, you just list the actual legal entity in your website's imprint or "About Us" section—though even that isn't strictly mandatory in every case.

Ned told you everything exactly right—he’s spot on. You really need to have either $20,000 in liquid cash or about $10,000 worth of assets. If you go the asset route, that’s another $10,000 in cash just to cover the appraiser to actually value them. As for that $6,000? The only way he could have burned through that was on legal fees and paperwork—maybe paying an attorney to draft all the contracts and handle the bureaucracy. Otherwise, there just isn't much else it could have gone toward.

Can you really drop $20,000 on business expenses without anyone blinking? I mean, sure, if it’s legitimate, it’s fine. But then there's the matter of the domain. It really ought to match the company name exactly—something like CompanyName.com. If you want to go with something else, well, that's a different story. You'd likely have to file a special request just to justify it. Is it worth the extra paperwork? Who knows.

For instance, say you have your own LLC... I can't quite make sense of that link. Is there something specific you were trying to share? If you're looking for information or want to start a discussion on a particular topic, just let me know. I'm listening.

So, you decide to grab a .com domain for... what exactly? Is it just for the sake of owning a little corner of the internet, or are you actually building something meant to last? It’s an interesting choice. One wonders if the prestige of a dot-com still carries the weight it used to, or if we're all just chasing digital real estate for the hell of it. What's the end game here? $20 A yearly hosting plan for maybe $250 to $300 and the whole headache just disappears. Problem solved? Perhaps.

P.S. Your friend seems to have gotten a few things mixed up.

Come on, people. I decided to start a new thread on this because, even after sitting through meetings with three different Leasing companies, there are still some major gray areas.

cosmicotter12 said:When you're dealing with financial Leasing, it doesn't matter if you're just an individual or running a whole corporation, once that final payment hits, you've still got to cough up this extra buyout fee... it usually runs about $165 or maybe even $333 depending on which big outfit like Chase or Wells Fargo you're signed with. You really need to dig through your contract because they’re legally required to lay it all out there.

Now, if you're looking at operating leases, the deal is totally different because the lessee isn't actually going to own the car at the end of the day... instead, they have to—or can choose to—designate some third party to buy the vehicle from the Leasing company, and then that person buys it from them. It's a bit more of a headache to navigate, but honestly, it's doable if you play your cards right.

Is this a universal rule across all leasing companies? I've sat in on a few meetings where bankers were pitching deals to firms for luxury yachts, and regarding operating leases, they insisted that the buyout was a non-issue—you just cover the sales tax on the equity portion and you're set. I am absolutely certain about this because I was taking notes at the time.

I think that’s really all there is to it. There aren't any more payments lurking around the corner. With an operating lease, you just cover the sales tax on the buyout if you want to actually own the asset, and with a standard finance lease, the final installment is simply the final installment.

I actually took care of that quite a while ago. Everyone seems to have their own little theory about it—everyone’s out here giving "expert" advice on operations, though there are definitely some nuances to consider. It isn't really the credit score for a car that worries me; that wouldn't be much of an issue. The real concern is securing financing for a vessel, given how much more expensive those are compared to anything else..
That said, you’re probably better off sitting down with your own accountant. They'll have the best handle on the specific intricacies of your business's books..

Anyway, thanks a lot for the help.

You make a fair point, though I’m running my own numbers here. I have some cash set aside specifically for a down payment on a vehicle, but when you look at the bottom line, the math ends up being pretty much identical. For me, an operating lease might actually be the smarter move for our credit profile. If my primary company acts as a guarantor for my other firm when we go to acquire a boat through an operating lease, having that guarantee in place should mean the new entity needs to put down a much smaller deposit.

That said, I’m still on the fence about applying that same logic to a car. It starts feeling a bit too much like a standard rental, especially considering our typical mileage—we usually clock in around 15,000 to 18,000 miles a year—so I’m just not entirely sure.

I honestly don't know how much a finance lease would actually weigh down the credit rating of the smaller firm.

Henry Edwards33 said:According to the IRS, you register for taxes the moment you start up, using the date on your official articles of incorporation as the starting point.
Once the business is live, you're expected to file your quarterly reports right after each quarter ends.

Terms like "grace periods" or "minimal operations"—honestly, I’ve never heard anyone actually use those terms, so they still sound like total gibberish to me. And then there's the whole debate about whether the CEO has to be an actual employee; people have written so much about it that I've just completely checked out.

You're right, though. Ignorance isn't an excuse.

Look, we’re talking about some internal database that the old accountant—who happens to be a total pro, by the way—is familiar with.
I asked her if it was possible, and she said yes; apparently, there isn't an immediate requirement to report everything instantly, blah blah blah. But then, she also noted that once the registration is filed, I have to start paying payroll taxes immediately. Every contact I've reached out to at the local IRS office seems to follow that same protocol.

Henry Edwards33 said:We’re both on the board, and honestly, nobody—not the notary, not IBM, not even our bank—ever asked us to appoint a single director. It was simply recorded that we both have independent signing authority, and the bank has copies of both our IDs on file...

I’d love an explanation for this phrase "with actual work," because I’ve certainly never encountered it before in any professional setting. 🤷
Our business operations are running smoothly and we aren't behind on any taxes or payroll, and under US law, a founder is perfectly entitled to volunteer their time at their own company.

If you are both on the board and have the authority to represent the company individually and independently, then by definition, you are both CEOs. You should check your operating agreement; that's the only place where that distinction is officially made.

That term is essentially a threshold of tolerance for startups. It’s that grace period before your accountant registers you with the IRS and starts filing your official statistics. In my experience, things were tolerated right up until that day, but certainly not after.

Honestly, your best bet is to just ask your accountant. No one is going to volunteer the information if you don't ask, but if an inspector shows up out of the blue, they'll be more than happy to hand you a fine.

No one is stopping you from volunteering your time for your own company, but the law does prohibit a CEO from being unemployed.

Henry Edwards33 said:Zero taxes are being paid. And honestly, we aren't an outlier here; I could probably name ten different companies operating under this exact same setup.

I’m curious—assuming Aurora is right, what happens if a company simply doesn't have the cash flow to hire a director or cover their salary?

Here is how it was explained to me, following the advice of notary publics, accountants, and colleagues alike;

When you first incorporate, you have to designate a director. Since there were two of us starting out, the notary told us that someone must hold the director title, though we had the option (but weren't required) to both serve in that capacity. In my company, I am the sole director. It’s the same thing when you go to open a business account at a bank like Chase; they demand a copy of the director's ID and their signature. They don't bother asking about the other partners.😁

If the Secretary of State's website lists you as a "Member of the Board" who represents the company individually and independently—that essentially makes you the director.
If the director is an employee, or if the company hasn't officially kicked off its "actual operations" yet (as I mentioned above regarding dormancy), no one is strictly required to be an employee of the firm.

However, if the director is unemployed and the company is active (once operations begin, there isn't really a way to go back to being dormant), they are required to pay their own payroll taxes. They can waive their salary due to the company's poor financial state, but those taxes still have to be covered.

Now, it isn't mandatory for that director to be insured specifically as a director. That is to say, they don't necessarily have to sign an employment contract with the firm for a directorial role. They can technically create another job title within the company and sign the contract on both sides 🙂.
For example, an administrator. You’d pay payroll taxes based on a net of roughly $0.83 around $0.45.

If the director has no money for taxes and isn't working anywhere else, I suspect there aren't many options left.

In your specific situation, it might be best for your colleague to be a member of the board while you act as the director. Problem solved. It's certainly cheaper than dealing with all those tax obligations.

I always carry full coverage. These days I’m driving my own car outright since I paid off the loan (and they didn't even require collision coverage once the debt was gone)😲. There is just no way I’m risking a vehicle worth $15k, let alone something more expensive.

Think about it: some idiot hits you in a parking lot and slides right into your bumper... we’ve been there ourselves. If you don't have collision insurance, you're basically just paying for the privilege of being screwed over. We ended up taking the car to a top-tier mechanic, he handed us a massive bill, and that was that.

I take the extra coverage every single time. So, does anyone here have actual experience who can tell me what makes more sense besides just paying cash? Also, is it better to opt for a 20%, 30%, or 40% deductible? Since it isn't technically an expense but more like a deposit, it doesn't hit the bottom line directly.
How should I handle that from an accounting standpoint? If I pay the deductible through the business account, does it essentially function as pure profit? Or is it smarter to keep a cash deposit separate from the business—just personal funds—or perhaps document it as a loan that gets repaid at the end of the year??

Alex Watson21 said:I haven't heard anything about it either, which is why this whole thing feels so off... I just don't get why the Secretary of State's office would use two different terms for the exact same thing 🤷

Even when I check the online business registry, it doesn't explicitly list me as "Director." Instead, it states that I am a member of the board with the authority to represent the company individually and independently. It’s one of those odd discrepancies where the official digital filings say one thing, yet all the actual paperwork insists I hold the title of Director. Is it really that complicated?
One co-owner doesn't show up anywhere—well, not by name, since they’re sitting on the board—but they’re busy drafting the fundamental framework, that whole "social contract" bit.

Is it possible for the founders to be listed as both general members of the company and as part of the executive board?

At the end of the day, I don't think you can have a corporation without a director. Someone has to be held accountable. Who else would it be?

Charles Ramos7 said:You can find all the details on any leasing company's website.
There are a few other factors you should weigh up besides what you mentioned:

-if maintaining a high credit score for the business is a priority, operating leases might be the way to go.
-from a tax standpoint, financing is often better due to how VAT works.
-and so on...

Honestly, your best bet is to run this by your accountant. At my company, we have one vehicle on a finance lease and another that we just paid off upfront. We’ve been happiest with the outright purchase since we don't have to deal with interest or late fees.

Look, I'm already aware of everything they put in their brochures. I've handled operating leases for shipping partners before... I know how the tax implications work... I've spent hours in meetings with bankers. But right now, I'm not asking the bankers.

I'm asking if anyone here has actually lived through both options and realized which setups are better or worse in practice?

Obviously, paying cash is the ideal scenario, but we are dealing with a lot of variables here. For me, having that monthly tax deduction is a plus, and being able to spread out the cost year over year is helpful—which makes a lease look pretty good (besides the fact that we aren't talking about a $10,000 car).

Alex Watson21 said:An administration member doesn't necessarily have to be the CEO. There are plenty of companies out there running just fine without one at the helm...

An officer who acts as the sole legal representative for the company—that’s effectively the director. I actually went back and checked the articles of incorporation to verify that.

Can someone give me just one example of an LLC operating without a director? I’ve truly never encountered one. Even when foreign investors set up entities here just to hold assets, like a private yacht, they still have to step up as directors.

Personally, I work with plenty of small businesses that don't even have a single employee, yet every single one of them has a director.

Henry Edwards33 said:My partner and I founded this company together. We both sit on the administration board with an equal 50:50 split. We don't have a director, we don't have any employees, and one of us is currently unemployed. As far as business operations go, we aren't having any issues.😉

Being a member of the administration doesn't strictly mean you have to be the Director, though you certainly can hold that role.

The concept of a "dormant" company isn't really a thing anymore. It’s just a company that happens to be doing very little activity.

You might want to double-check that. We were explicitly told that someone had to be designated as the director—not just for the notary, but for FedEx and our accountant as well.

It’s not exactly a "dormant" status; more like waiting for the IRS to notice you once your transaction volume creeps past whatever threshold they tolerate.

Until then, nobody actually needs to be on the payroll. Once the numbers start showing up in the statistics, that's when an unemployed director has to be officially registered. Alternatively, you could be a member of the assembly while being the sole director, and since you're already employed elsewhere, you wouldn't be paying additional payroll taxes.

That’s not really the point, though. There isn't some profound, inherent link between a liberal arts education and capitalism. It’s all about personal growth—developing the individual, blah, blah, blah—but when it comes to actual business, it's largely irrelevant in most scenarios. Even in the tourism industry. In that field, it’s more about knowing basic geography so you can say, "Oh, I visited Washington, D.C. last year, I absolutely loved it."

It’s also just awkward when someone lacks basic knowledge. I remember feeling incredibly embarrassed once because I was hanging out with a group of people who were discussing history as if they were still stuck in high school—and these were older people—while I realized I had forgotten almost everything myself...