Starting an LLC: Where to begin?

So he’s putting up the space, you mentioned equipment access, plus covering payroll for the first six months—you just need to nail down the legalities. Is this a loan he gets repaid through future profits, or is he actually buying equity?

That whole synergy thing you guys are aiming for works for both sides, so definitely negotiate. But look, he needs skin in the game. You can't just shut him out of the ownership structure; one of you has to pitch a deal and the other either bites or counters. Makes sense, right?

I know you *can* pull this off solo, but having some backup makes life a hell of a lot easier. Don't be afraid to bring people in—just make sure even if it's your own brother, everything stays strictly on paper.

Most people start with a killer idea, but the execution is where things usually fall apart. Don't let yourself crash and burn early on just because you're too stubborn to share profits that haven't even materialized yet.

Of course I’m looking at this through his lens—basically, how can he make money? Maybe he takes a cut of the project profits. We'd probably need a solid contract that lets me tap into his firm's capital and resources as long as he holds an equity stake. It would all come down to calculating my usage of those assets against his return on investment. But honestly, I want to remain the sole owner.

The core of my hesitation is that I’m playing the long game. I want to eventually reach a point where I'm completely independent of him. I don't have anything against the guy, but let's be real: a split is inevitable sooner or later because the gap between our capacities is just going to widen. As time goes on, my company will become a more attractive, easy investment for him, while he starts feeling more like a burden to me (given his personality and his age). If I manage to build a powerhouse company by then, I don't want to be stuck paying out a massive settlement to a partner (just look at what happened to my friend I mentioned earlier).

I see the whole setup as a launchpad for my startup and a decent mid-term investment for him, rather than the start of some eternal synergy or lifelong partnership.

By the way, I definitely recommend reading:
Richard Koch: 80/20 Principle
It touches on exactly these kinds of things.

maybe try moving this to the right sub?

i feel you, man—everyone wants that total independence without the massive upfront capital or the smooth sailing, but life isn't exactly a walk in the park

if your buddy put way less skin in the game, obviously he had to grind harder to pay out a partner—that’s just how it works, right? everything comes with a price tag, even business autonomy. if it were cheap, you wouldn't be looking for a boss's help today

but hey, we're all wired to root for our own side—can't blame you, i'm with you

Why not just start a secret society?
Essentially, this individual funds you—providing capital, property rights, or whatever else is needed—and in exchange, they take a cut of the profits. Since a secret society lacks formal legal standing, it won't show up on any state business registry. On paper, you remain the 100% owner of the LLC or whatever entity you decide to establish. In reality, a secret society functions more like a private contract between two parties. As far as the rest of the world is concerned, you are the sole authorized representative of your firm.

That’s exactly what I was getting at. Some kind of partnership agreement where he gets a cut of the profits.

But let’s be real, I'm expecting him to ask for equity in the company. That's where the negotiating and the back-and-forth really starts.

Thanks, you two!

Hi there,

I'm trying to figure out exactly how much capital I need to launch a business. Like, what are we talking about for total startup costs? Also, is hiring an accountant a requirement from day one, and what's the typical monthly fee for that? Regarding a sole proprietorship—can I set one up specifically for web development? If I go that route, can I bill clients directly for my services, and would I still need an accountant to handle things?

Thanks in advance for the help.
😕

5-$2333 for expenses and $6667 initial startup capital (which you can eventually sink back into gear, etc.). You don't strictly need an accountant (maybe $500-$333) if you're comfortable handling the books yourself. You could just set up a sole proprietorship to handle web dev work and invoicing; the bookkeeping is a bit more straightforward than running a full corporation, but you still have to stay on top of it, whether you DIY or hire someone.

Quick question here.

If someone starts out as a sole proprietor and takes out a small business loan, could they then use those funds to set up an LLC and just shut down the original proprietorship?

Also—if I start drifting off-topic in my own thread, feel free to just hit me up via DM instead. Thanks!

Chris Ruiz10 said:I’m with Banderas on this whole thread. Props to him. 👍

Regarding the investment side, being in the VAT system only makes sense if you're building a hotel, a factory, or some massive complex where you can write off millions in VAT. For a tiny startup just buying a laptop and some office furniture? It’s pointless. Especially if your customers are just regular people. If most of your clients are other businesses—excluding banks and insurance companies—then maybe it's worth it since VAT is neutral for them, and you get to offset the tax on your own bills for stuff like phone service and utilities.

I have a quick question.
Before my wife and I officially incorporate our business, I'm struggling with this whole sales tax issue. Our primary client would be a major bank. Since they aren't part of the sales tax collection system in the same way, I'm wondering how we are supposed to increase their invoice to cover the sales tax we'll be required to pay?

Someone mentioned non-profits to me. Does anyone happen to have any information regarding the formation and operation of a 501(c)(3) organization, specifically regarding legal rights and responsibilities?

Best regards,

There are five of us looking to launch a niche media portal fueled by ad revenue. We're trying to figure out the best legal structure—should we go with a sole proprietorship, an LLC, or maybe something else entirely, like how short-term rental owners set things up? We also need advice on what specific business category to list, what the startup costs look like, and what we’re looking at for monthly and annual overhead. Any guidance on the requirements for setting up a specific type of entity would be huge. Also, if anyone knows what it costs to have a pro put together a solid financial projection, let me know via PM.

I was wondering—what kind of requirements does a foreigner actually need to meet to become a director of a company here in the States?

Do you get your tax ID and EIN right away during registration, or is that a separate headache you have to deal with later?

Also—since things will be pretty quiet for the first few months—could someone at VSS handle the bookkeeping? Like, if they aren't a pro but understand the basics, is that doable or just asking for trouble?

Gerald King said:There are five of us looking to launch a niche media portal fueled by ad revenue. We're trying to figure out the best legal structure—should we go with a sole proprietorship, an LLC, or maybe something else entirely, like how short-term rental owners set things up? We also need advice on what specific business category to list, what the startup costs look like, and what we’re looking at for monthly and annual overhead. Any guidance on the requirements for setting up a specific type of entity would be huge. Also, if anyone knows what it costs to have a pro put together a solid financial projection, let me know via PM.

Business category = 518210 Internet Publishing😉

I’ve always preferred an LLC; there aren't many hoops to jump through.

Have you guys actually run the numbers yet, or found any potential clients?🤷

Joseph Smith2 said:I have a quick question.
Before my wife and I officially incorporate our business, I'm struggling with this whole sales tax issue. Our primary client would be a major bank. Since they aren't part of the sales tax collection system in the same way, I'm wondering how we are supposed to increase their invoice to cover the sales tax we'll be required to pay?

Someone mentioned non-profits to me. Does anyone happen to have any information regarding the formation and operation of a 501(c)(3) organization, specifically regarding legal rights and responsibilities?

Best regards,

You won't be the one footing the bill; the bank—as the end user—will. The fact that they aren't registered for sales tax isn't your headache. You are registered, you list it on your invoices, and the client is legally obligated to pay it.

Jacob Long said:Do you get your tax ID and EIN right away during registration, or is that a separate headache you have to deal with later?

Also—since things will be pretty quiet for the first few months—could someone at VSS handle the bookkeeping? Like, if they aren't a pro but understand the basics, is that doable or just asking for trouble?

Anyone can handle the bookkeeping regardless of their degree. What matters is knowing the work and having the experience...

Beyond those $5,000 $2000 for paperwork, filing fees, and stamps, you also need at least $20,000 $0.00 in startup capital. I read somewhere that when setting up an LLC, you can actually include a clause stating the company is obligated to pay back that initial investment to the investor—or something along those lines? Is that actually a thing, or just some malicious nonsense 😁
?

I understand there is a mandated minimum gross salary, but how does that apply if a director is working part-time? Is it even legally permissible to hire a director on a part-time basis if they aren't employed elsewhere for the remaining half of their schedule?

Can I list a vehicle as my initial capital?
I mean—could I just put down my own car?

Could someone provide an estimate regarding the total time and budget required for this undertaking?

rapidviper54 said:Beyond those $5,000 $2000 for paperwork, filing fees, and stamps, you also need at least $20,000 $0.00 in startup capital. I read somewhere that when setting up an LLC, you can actually include a clause stating the company is obligated to pay back that initial investment to the investor—or something along those lines? Is that actually a thing, or just some malicious nonsense 😁
?

It’s true.