Starting an LLC: Where to begin?

Anonymous · 2003-10-06T15:46:17+00:00

I was wondering how much it actually costs to register a business name? Is the fee the same everywhere, or does it vary depending on which city you're in? Also…

Maria Palmer9 Newcomer

6 messages
joined Nov 2008

#361 · Nov 2, 2008

So, you don't even need those basic technical 😁

And about the sales tax... you can just opt into the system if you want, it’s not like it's some mandatory thing you HAVE to do

Drew Smith Member

14 messages
joined Dec 2008

#362 · Dec 6, 2008

1. Can anyone give me some advice? I just had an idea pop into my head.
The plan is to import the raw materials, buy the necessary machinery, and then sell the finished product.
It sounds great on paper, except for the fact that it requires capital. I've heard people talking about federal grants and small business loans, but nobody seems to know how to actually get them. Can someone point me toward a helpful website? Google hasn't been much help.
2: Once I set up my LLC and purchase the equipment, how does the tax situation work if I'm importing those machines from overseas? Also, what kind of incentives are available for a business model like this? The idea feels solid and the profit seems guaranteed.

Sorry if this is off-topic, but I honestly didn't know where else to ask.

Matthew Flores9 Newcomer

1 message
joined Dec 2008

#363 · Dec 10, 2008

Hi everyone! I’m looking to launch a new business venture—an LLC focused on ATV rentals and organized day tours through the local countryside, complete with professional guides. Honestly, I’ve been bouncing between different government agencies for weeks now, and it has been an absolute headache. Nobody seems to have a straight answer on which specific business classification I should use. One official tells me I need to register as a full-scale travel agency, another says all I really need is to hire a licensed tour guide, and then someone else insists I need special permits from the U.S. Forest Service to ride on public lands, while yet another person claims that isn't necessary at all. It feels like everyone is just making things up as they go. Has anyone here actually ventured into this industry or dealt with these kinds of regulatory hurdles before? Any insight, advice, or even a general roadmap would be incredibly helpful right about now.

rapidwolf43 Newcomer

2 messages
joined Dec 2008

#364 · Dec 11, 2008

So, once I get my LLC up and running, can I just hire myself out on an independent contractor agreement? Also, is it actually legal for me to handle all my own bookkeeping?

mellowfox56 Active Member

94 messages
joined Mar 2012

#365 · Dec 12, 2008

rapidwolf43 said:So, once I get my LLC up and running, can I just hire myself out on an independent contractor agreement? Also, is it actually legal for me to handle all my own bookkeeping?

Honestly, why bother with a contract if the tax hit is basically the same as a regular salary? And yeah, you can totally manage your own books if you're up for it.

Adam Taylor12 Member

31 messages
joined Jul 2009

#366 · Dec 17, 2008

Does current labor law permit retirees to work for an LLC—perhaps just a few hours a month?

Jose Fowler6 Newcomer

3 messages
joined Dec 2008

#367 · Dec 17, 2008

rapidwolf43 said:So, once I get my LLC up and running, can I just hire myself out on an independent contractor agreement? Also, is it actually legal for me to handle all my own bookkeeping?

If you’re the director of that LLC and you aren't employed elsewhere, you have to be an employee of your own company. If you don't, you're asking for trouble; if the IRS or a state auditor comes knocking during an inspection, they can shut your business down for 30 days and slap you with a massive fine. As the director, you can't just sit there being unemployed.

Jose Fowler6 Newcomer

3 messages
joined Dec 2008

#368 · Dec 17, 2008

rapidwolf43 said:So, once I get my LLC up and running, can I just hire myself out on an independent contractor agreement? Also, is it actually legal for me to handle all my own bookkeeping?

Of course you can, provided you actually have the expertise. If you don't, you're better off hiring a professional to deal with it for you.

mellowfox56 Active Member

94 messages
joined Mar 2012

#369 · Dec 17, 2008

Adam Taylor12 said:Does current labor law permit retirees to work for an LLC—perhaps just a few hours a month?

Of course it does, as long as you're working under an independent contractor agreement or something similar. Up until the end of 2008, you still had to deal with taxes and payroll contributions just like any other employee—unless there was a workplace accident involved. But once the new laws kicked in on January 1st, 2009, those specific payroll taxes for retirees working on contract basis were phased out.

Adam Taylor12 Member

31 messages
joined Jul 2009

#370 · Dec 17, 2008

Could someone provide a specific breakdown of how retirees can be employed by an LLC starting January 1st, 2009? Specifically—is there a cap on the number of hours they are permitted to work per month? Furthermore, I am curious whether working for an LLC has any direct impact on their Social Security benefits and/or their tax filings. Thanks in advance.

Susan Ward2 Newcomer

1 message
joined Dec 2008

#371 · Dec 18, 2008

Jose Fowler6 said:If you’re the director of that LLC and you aren't employed elsewhere, you have to be an employee of your own company. If you don't, you're asking for trouble; if the IRS or a state auditor comes knocking during an inspection, they can shut your business down for 30 days and slap you with a massive fine. As the director, you can't just sit there being unemployed.

Hold on a second—where are you getting that from? Every accountant and small business owner I've talked to says a director doesn't need to be officially employed anywhere, whether it's their own firm or elsewhere...

Charles Ramos7 Regular

529 messages
joined Jul 2010

#372 · Dec 18, 2008

Susan Ward2 said:Hold on a second—where are you getting that from? Every accountant and small business owner I've talked to says a director doesn't need to be officially employed anywhere, whether it's their own firm or elsewhere...

They do.☕

mellowfox56 Active Member

94 messages
joined Mar 2012

#373 · Dec 18, 2008

Charles Ramos7 said:They do.☕

No offense, but I don't think you're quite right there. You can totally set up an LLC without having any employees on the payroll (at least for now). We were all talking about this stuff a year or two ago, but nothing really changed. If you want proof, just look at how many people own multiple companies at once. There's no way one person can be a full-time employee for every single one of them simultaneously, right?

Charles Ramos7 Regular

529 messages
joined Jul 2010

#374 · Dec 18, 2008

Joe is confusing the terms owner versus director.
Look, you can definitely start a company where the founder/owner has nothing to do with the CEO or the person in charge. It could be the same person, sure, but it doesn't have to be.

George Wilson4 Member

38 messages
joined Nov 2012

#375 · Dec 18, 2008

To build on that, Charles Ramos7 makes a valid point. A director has to actually be an employee. A company can only operate without staff if the director is simultaneously working for another firm while holding that leadership role there too. They can't just be unemployed. The only exception might be those first few months when a company is essentially just sitting idle.

rapidwolf43 Newcomer

2 messages
joined Dec 2008

#376 · Dec 19, 2008

So, can a business actually operate by having the founder basically hire themselves through a student employment agency?

George Wilson4 Member

38 messages
joined Nov 2012

#377 · Dec 20, 2008

I don’t know, you seem to be mixing up your terms here. A founder doesn't necessarily have to be the CEO. If paying about $0.45 a month in payroll taxes is such a headache, you could just appoint a family member as the director. The founder's role is secondary. Though, honestly, I’m not sure if that ends up being worth the hassle in the long run.
In my view, the sweet spot is taking two or three months off to just coast—you can send out some quotes here and there, and the occasional payment might hit your account. Once you're ready to actually get down to business, you register with the Democratic Party or whatever agency handles your filings. For instance, at the start, I was officially listed as a branch manager, even though I was effectively running the whole show as the director.

Ultimately, you'll get the best guidance from an accountant. They’ll look at your industry, your turnover, and what you actually want to achieve to find a setup that works for you.
Everything you're hearing on this forum is just guesswork because nobody actually knows what kind of business you intend to run. If you provided a few more details, maybe someone could offer a more substantive piece of advice.
Your best bet is to find someone who already has an accountant and send them a private message...

Gerald Doyle80 Newcomer

2 messages
joined Dec 2008

#378 · Dec 20, 2008

Sophia Rodriguez13 said:Understood. I get the basics—how to set up an LLC, capital requirements, and all that.

If I decide to form an LLC but have more cash than patience, should I just hire a notary, a lawyer, or some other legal firm to handle the heavy lifting?

Here’s the plan: I want to start an import business bringing alcoholic and non-alcoholic beverages from Scandinavia into the US, focusing on wholesale distributors.

Questions:

Where can I find a legal firm in New York that can handle the entire incorporation process
and provide someone to draft partnership contracts?

And where can I find a directory of potential business partners in this industry to reach out to
for cooperation agreements?

Thanks. Sophia Rodriguez13

Hmm... well, if you've got the cash but zero desire to deal with the headache... you can always just hire a lawyer, give them power of attorney, and let them handle the whole mess for you. Honestly though, the process itself isn't actually that much of a time sink... you basically just head down to the IRS or a local government office to hit up a quick service desk (I think there's a dedicated window for fast processing in downtown Chicago)... fill out the forms, wire over your initial capital deposit... you can even order your official seal right there. After that, you drop by a notary to get all those articles of incorporation and formation statements drafted, then pick whatever bank you want to open a business account with... once your filing shows up in the state registry, they'll credit that initial deposit back to your business account and you're pretty much set. From there, you just need to register the business with the tax authorities (you'll definitely want to register for a sales tax permit so you can issue proper invoices), and then sort things out with Social Security and health insurance if you're planning on hiring staff... and that's really it. The whole ordeal should only take you about two days tops.

Gerald Doyle80 Newcomer

2 messages
joined Dec 2008

#379 · Dec 20, 2008

George Doyle5 said:Hi everyone, I have a quick question. I’m planning to launch a website, and since my goal is to monetize through sponsorships, I know I’ll need to handle taxes and business filings. Every site I look at seems to be owned by an LLC rather than a sole proprietorship. I'm trying to decide if I should go the route of forming an LLC or if staying as a freelancer would be a better move. Any advice or insights would be greatly appreciated. Thanks!

Personally, I’ve always been a fan of the LLC route.😉

Elizabeth Perez2 Newcomer

2 messages
joined Nov 2008

#380 · Dec 23, 2008

George Wilson4 said:To build on that, Charles Ramos7 makes a valid point. A director has to actually be an employee. A company can only operate without staff if the director is simultaneously working for another firm while holding that leadership role there too. They can't just be unemployed. The only exception might be those first few months when a company is essentially just sitting idle.

When the ZTD first took effect back in 1995, it didn't mandate that a board member (the director) had to be an employee. An amendment was introduced in 1999 regarding this (Article 32 stated a company could operate as long as at least one board member was an employee), but the Supreme Court eventually struck down that change as unconstitutional (Federal Register 52/00)...

However, specific laws governing certain industries do prescribe who must be employed within such a firm to allow operations to continue...

I found this online:
"Examples of such laws include:

- The Investment Company Act (Federal Register, No. 107/95), Article 18...

- The Privatization Act (Federal Register, No. 109/97), Article 17, Paragraph 3...

- The Banking Act (Federal Register, No. 161/98), Article 19, Paragraph 2...

- The Transportation Act (Federal Register, No. 36/98), Article 17...

Similar provisions are found in other laws or sub-regulations enacted under these statutes, such as:

- The Maritime Code (Federal Register, No. 17/94 and 74/94) - Maritime Shipping Regulation (Federal Register, No. 17/95)...

- The Hydrographic Activity Act (Federal Register, No. 68/98) - Regulations on the requirements for legal entities performing hydrographic activities (Federal Register, No. 162/98)...

- The Environmental Protection Act (Federal Register, No. 82/94) - Regulation on conditions for granting consent to perform professional environmental protection services (Federal Register, No. 7/97)...

Starting an LLC: Where to begin?

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