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LLC Operating Costs & Expenses

Started by Michael Palmer6 · · 👁 4 views · 3 replies

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Participants Michael Palmer6Zachary Vaughn92lonehawk5
Michael Palmer6 Michael Palmer6 NewcomerOP
2 messages
joined Jan 2019
#1 ·
Anyone dealt with business overhead before?
Thinking about starting an LLC. Since I probably won't see any profit for the first few months, I need to know what the damage will be.

I get the setup fees, but what about the actual running costs—what am I paying for once the paperwork is done?

Since I already have a day job, I don't need to
pay self-employment tax.

If I use my house as my business address, do I need some kind of lease agreement or something?

What's a typical monthly rate for a beginner accountant?

If anyone has recent experience, let me know...
Zachary Vaughn92 Zachary Vaughn92 Member
19 messages
joined Oct 2018
#2 ·
I could really use some clarity on this too. For instance, what would be the approximate total annual tax burden for an LLC owner who already holds a full-time job elsewhere, with their Social Security and health insurance fully covered by that employer?
Michael Palmer6 Michael Palmer6 NewcomerOP
2 messages
joined Jan 2019
#3 ·
Nobody's coming to save us 🙂
lonehawk5 lonehawk5 Active Member
161 messages
joined Oct 2012
#4 ·
So, they dropped the minimum capital requirement down to $5,000.
Your overhead is basically: rent, accounting, utilities, payroll taxes, salaries... the usual stuff.
Sure, you can register the business under your own roof, but don't forget you still have to meet all those technical requirements and certifications—depending on what kind of industry you're in.
And yeah, contracts? You absolutely need them. Always.

When it comes to accounting, calculate it $667 on a monthly basis... and just forget about those cheap services that offer everything for pennies. You’ll end up in a massive mess because those guys always take the easy way out, and eventually, that laziness lands right back on your head.
Keep a close eye on the balance between your income and expenses, otherwise, you're going to be getting "love letters" from the IRS constantly.

Oh, and one more thing—budget extra for those startup costs on top of the capital, like legal filings, stamps, and all that junk.

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