Posts by Jose Stewart3

I guess I agree with you, Dante, but honestly, it might be better to just ask 😉

I'm trying to figure out what all the actual costs are when you're setting up an LLC.
Like, I know about the standard stuff—notary fees, registering with the Census Bureau, the initial capital requirements—but I've heard whispers about these random, hidden expenses that aren't listed anywhere. The kind of things you only find out about once the business is already live and you're staring at a bill you didn't see coming. 😕
Also, just curious... can a company operate without any employees if the director is actually employed somewhere else and happens to be out on medical leave right now?

So, okay, let's say I'm basically lending my own money—specifically an amount equal to my initial capital investment—back to my own company. I'd be calculating interest on that without any sales tax, obviously. But how much does that interest actually come out to, or rather, how much more am I technically supposed to pay myself on $6667 this whole thing?

Henry Edwards33 said:There are plenty of ways to pull cash out of the business. You can issue a loan to yourself as the director, take an advance against future profits if you’re actually making money, or just run it through travel reimbursements if you have employees on the payroll. It's all just different ways of moving the pieces around.
The main thing is getting registered with the IRS right away. You can't be out there issuing outgoing invoices before that paperwork is settled, and you need to officially register yourself as the director the second you get started. 😉

Are there any other extra taxes or things like sales tax I should worry about when doing a director's loan or those other types of payouts?

Thanks for the tip, but I'm already aware of that part. I was actually looking for a specific example... so if anyone happens to know a better way this works in practice, I'd really appreciate it.

The decision is made: I'm starting an LLC. 🙂 Sadly, I’ll have to take out a loan to cover the initial capital, which I'd basically just pay back immediately after setting things up. I guess I'm looking for the exact protocol here—what do I actually need to do to make sure this stays totally legal? Also, once the LLC is up and running and doing its thing, what are the easiest ways or legitimate reasons for a director to withdraw cash from the business account? And how much time do I actually have after incorporating to register the company with the IRS and get myself set up as director with the Social Security Administration and Medicare? Thanks!!! 😍

silverbison293 said:For crying out loud,
look, even if he’s working somewhere, you don't actually need proof—what you really need is some level of assurance from the employer that he’s actually on the payroll,
and if he’s currently unemployed while sitting on the board, then again, it shouldn't matter because, by law, a CEO has to be an active employee...
☕

So, here's my deal: I'm thinking about starting my own LLC. I’d basically be the CEO and the only actual employee—even if I had a board member or a proxy involved who wouldn't technically be on the payroll. But, I'm planning to get pregnant, which means I'll eventually need maternity leave. I'm wondering if I'd be forced to hire someone else to cover for me while I'm out, or if that rule about an LLC not needing employees still holds up (since I'd still technically be an employee regardless of any complications or maternity stuff later on)? Thanks!🙏🙏🙏

silverbison293 said:The prosecutor doesn't actually need to be an employee—but the director definitely does. You have to provide proof that you're working somewhere else part-time; otherwise, you're required to be on a full-time schedule...

Thanks! I guess at least I can just stay on minimum wage for now. 😂
So, if I’m acting as the director and I'm just pulling in minimum wage, do I still have to pay any payroll taxes or contributions for my partner in the company—you know, the other board member? It doesn't really matter if they have another job or aren't working anywhere at all, right?
Thanks! 😍

I’m thinking about starting my own company, so I need to wrap my head around all the different setups involving board members, directors, and founders. My main goal is basically to keep payroll taxes and benefits costs as low as possible, though I know I'll have to cover them for myself since I’ll obviously be working there. I’d probably be coming into this with one other person, and while the capital would be entirely mine, I still want to give them some kind of stake in the business—just without having to deal with the whole tax burden for them if I can help it.
I guess the smartest move might be for me to act as the director while giving the other person power of attorney or making them a board member... I'm not really sure if those roles trigger specific tax requirements for that second person or whatever. 🤷
Also, is it actually possible for me, as the director, to just register for part-time hours, like maybe 20 hours a week?

I guess both roles are listed as director. 🤷
So, basically, you just pay payroll taxes for one director if they aren't actually doing anything, but you don't have to bother with the second director or board member even if they're totally idle?
If the company doesn't strictly need an employee on paper, I wonder if it works like a small sole proprietorship in the States, where maybe a family member helps out behind the scenes without being officially on the books?

mellowfox56 said:1. It’s pretty likely the founder/CEO is actually working somewhere else and paying their taxes there. In this setup, they’re just acting as the owner, so if they’re already covered under another payroll, they aren't being taxed through this specific entity.
2. You can't have two CEOs—there's only ever one head of the company—but you can definitely have multiple board members.
Just wanted to add that an LLC can totally operate without having any official employees on the books.

Wait, how can there not be two directors? 🤷 I was actually just looking through some business filings for a company where both the husband (who started the thing) and his wife are listed as directors, with authority to sign independently or together.
So, I guess I don't really get it. 🤷

Hey there.
Not totally sure if this is the right thread for this, but I couldn't find a better spot to dump these questions. I'm looking into setting up an LLC and was wondering about a few things:
1. If the founder isn't acting as the manager and happens to be unemployed, are they still on the hook for any payroll taxes, Social Security, or health insurance contributions?
2. If there are two managers/board members who are both currently out of work, but one of them doesn't actually have the authority to sign for the company, do they both still have to pay those mandatory taxes, or is it just the one with the signing authority?

I haven't been able to get a straight answer from anyone yet. 🤷
Thanks!