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…

Michelle Newman3 Newcomer

3 messages
joined Dec 2008

#381 · Dec 29, 2008

Gerald Doyle80 said:Personally, I’ve always been a fan of the LLC route.😉

What’s the deal with physical office space requirements when you set up an LLC? Between the bare minimum technical standards and the fact that commercial rent is absolutely skyrocketing, it feels like a massive hurdle. Think about it: if someone runs a web design agency through their LLC, they’re almost certainly offering hosting too. They probably just have a reseller account with a major provider, get a yearly invoice for the hosting service, and then bill their clients for both the site build and the ongoing hosting fees. Isn't that basically just reselling hosting space? You buy it cheap from a provider and sell it at a markup to the client. If we look at it that way, it’s just classic trading—which means, according to the law, we should technically need a dedicated commercial space that meets all those specific technical requirements and certifications, right?

Jacob Wood9 Active Member

62 messages
joined Jun 2008

#382 · Dec 29, 2008

Michelle Newman3 said:What’s the deal with physical office space requirements when you set up an LLC? Between the bare minimum technical standards and the fact that commercial rent is absolutely skyrocketing, it feels like a massive hurdle. Think about it: if someone runs a web design agency through their LLC, they’re almost certainly offering hosting too. They probably just have a reseller account with a major provider, get a yearly invoice for the hosting service, and then bill their clients for both the site build and the ongoing hosting fees. Isn't that basically just reselling hosting space? You buy it cheap from a provider and sell it at a markup to the client. If we look at it that way, it’s just classic trading—which means, according to the law, we should technically need a dedicated commercial space that meets all those specific technical requirements and certifications, right?

I suppose if you aren't running a deli selling pastries and yogurt, you might not strictly need a commercial refrigerator to stay compliant.

Michelle Newman3 Newcomer

3 messages
joined Dec 2008

#383 · Jan 2, 2009

Jacob Wood9 said:I suppose if you aren't running a deli selling pastries and yogurt, you might not strictly need a commercial refrigerator to stay compliant.

😲This is exactly what we should tell the inspectors when they show up checking us for basic technical compliance.

Listen, friend... I'm not selling sandwiches; I'm reselling hosting space I bought from someone else (it’s the same logic as buying a sandwich from one vendor, putting it in a fridge, and selling it to others), which is just standard commerce. And for any legitimate trade, you have to get an MTU!

Jose Fowler6 Newcomer

3 messages
joined Dec 2008

#384 · Jan 8, 2009

A simple Google search for "minimum technical requirements" will pull up a whole list of links detailing which specific business activities require them.

Alternatively, you can just call the local Department of Economic Development and ask if those requirements apply to your specific industry.

I believe there’s even a way to check on CNN by using the industry code to see if they're necessary or not.

Since September 1, 2008, under the current laws, certain industries no longer need MTU—for example, wholesale transit trade...
Service-based businesses don't need MTU either.

If they are required, say for an LLC involved in wholesale trade, you'll need to provide the following:
- A commercial lease agreement or proof of ownership if the LLC owns the premises.
- Building and occupancy permits for the space (you don't need the occupancy permit if the building was constructed before 1968, though in that case, you'll need certification from the land registry proving the building existed prior to 1968).
- A water safety certificate—issued by the public health department, which costs about $267
- An electrical installation safety certificate—for instance, issued by a firm like Inspekt in New York City, which costs $407
- An application for MTU determination—which you can download online.
- Fees of $117 + $23 dollars.

Once everything is submitted to the Department of Economic Development, they usually give you a call within about 15 days to schedule an inspection. They show up, and if everything checks out, you receive the official decision about 10 days later.

In my experience, the whole process took about a month and a half, even considering everything was being handled in the middle of summer.

Bryan Booth5 Newcomer

2 messages
joined Jan 2009

#385 · Jan 13, 2009

Hey everyone!

On a side note, I could use some help here!

I have two questions. First, I’m based in New York City, but I want to register my business in a different state—what does that process look like? Second, I have a degree in hospitality and tourism along with a bartending certification. Can I start a catering or bar business with those credentials, or am I required to pass a master's exam first? Or can I just get by as a sole proprietor?

Thanks in advance!!!

mellowfox56 Active Member

94 messages
joined Mar 2012

#386 · Jan 16, 2009

Bryan Booth5 said:Hey everyone!

On a side note, I could use some help here!

I have two questions. First, I’m based in New York City, but I want to register my business in a different state—what does that process look like? Second, I have a degree in hospitality and tourism along with a bartending certification. Can I start a catering or bar business with those credentials, or am I required to pass a master's exam first? Or can I just get by as a sole proprietor?

Thanks in advance!!!

Give the Regional Office a call at their main line at 2333-777 and ask for the department in charge of business registration. Cheers

Bryan Booth5 Newcomer

2 messages
joined Jan 2009

#387 · Jan 17, 2009

thanks mellowfox56! cheers!

mistytinker26 Active Member

63 messages
joined Apr 2013

#388 · Jan 27, 2009

What’s the cost to change the founding members of an LLC through the commercial courts? Is it possible to skip the notary entirely—just walk up and say, "Good morning, I want John Smith to be the founder instead of Joe Smith"? What’s the first step, and how long does this whole process actually take?

mellowfox56 Active Member

94 messages
joined Mar 2012

#389 · Jan 28, 2009

mistytinker26 said:What’s the cost to change the founding members of an LLC through the commercial courts? Is it possible to skip the notary entirely—just walk up and say, "Good morning, I want John Smith to be the founder instead of Joe Smith"? What’s the first step, and how long does this whole process actually take?

There's no way you can handle it quite that simply. I don't know all the specific legal weeds, but if you want the real details, your best bet is to give CNN at Finance a call.

mistytinker26 Active Member

63 messages
joined Apr 2013

#390 · Jan 28, 2009

Thanks for the info. CNN pointed me toward the memo, but I wasn't exactly surprised by the news. 😢 Honestly, I saw this coming.

Next question, if anyone knows: how much does it cost to formalize an amendment to the articles of incorporation? Apparently, that's the next step we have to take.

mellowfox56 Active Member

94 messages
joined Mar 2012

#391 · Jan 28, 2009

mistytinker26 said:Thanks for the info. CNN pointed me toward the memo, but I wasn't exactly surprised by the news. 😢 Honestly, I saw this coming.

Next question, if anyone knows: how much does it cost to formalize an amendment to the articles of incorporation? Apparently, that's the next step we have to take.

The price usually depends on the actual value of the legal transaction. Just do a quick search online for notary fees in the USA and you should be able to find something helpful. Cheers!

mistytinker26 Active Member

63 messages
joined Apr 2013

#392 · Jan 28, 2009

Thanks, really appreciate it.

On , Article 9

(2) When amending a corporation's articles of incorporation, the transaction value is determined by the scale of the change relative to the company's net assets (total assets minus liabilities). If the change involves a specific cash amount, that figure is used. L D U

(3) In cases involving the transfer of shares in a corporation, the applicable value is either the value of the transferred share if it exceeds the consideration paid, or the consideration itself if it is lower.

Article 12 states:
If the value of the subject matter of an official act is:

USD to USD points

0 5,000.00 25
5,001.00 10,000.00 50
10,001.00 50,000.00 75
50,001.00 75,000.00 100
75,001.00 100,000.00 125
100,001.00 150,000.00 150
150,001.00 200,000.00 175
200,001.00 250,000.00 200
250,001.00 300,000.00 225
300,001.00 350,000.00 250
350,001.00 400,000.00 300

The only thing I couldn't dig up—believe it or not—is 🙂 the actual value of a "point." By the way, I assumed the currency in the US was dollars, but apparently not according to the notary and lawyers. I'm just waiting for my local grocery store to tell me a loaf of bread costs fifty points.

To cut to the chase, what is the current value of a point, and how is the company's net assets calculated if the company hasn't been operating for very many years? Is it based on initial capital? How am I supposed to prove the amount to the notary? I doubt they'll just take my word for it.

mellowfox56 Active Member

94 messages
joined Mar 2012

#393 · Jan 28, 2009

mistytinker26 said:Thanks, really appreciate it.

On , Article 9

(2) When amending a corporation's articles of incorporation, the transaction value is determined by the scale of the change relative to the company's net assets (total assets minus liabilities). If the change involves a specific cash amount, that figure is used. L D U

(3) In cases involving the transfer of shares in a corporation, the applicable value is either the value of the transferred share if it exceeds the consideration paid, or the consideration itself if it is lower.

Article 12 states:
If the value of the subject matter of an official act is:

USD to USD points

0 5,000.00 25
5,001.00 10,000.00 50
10,001.00 50,000.00 75
50,001.00 75,000.00 100
75,001.00 100,000.00 125
100,001.00 150,000.00 150
150,001.00 200,000.00 175
200,001.00 250,000.00 200
250,001.00 300,000.00 225
300,001.00 350,000.00 250
350,001.00 400,000.00 300

The only thing I couldn't dig up—believe it or not—is 🙂 the actual value of a "point." By the way, I assumed the currency in the US was dollars, but apparently not according to the notary and lawyers. I'm just waiting for my local grocery store to tell me a loaf of bread costs fifty points.

To cut to the chase, what is the current value of a point, and how is the company's net assets calculated if the company hasn't been operating for very many years? Is it based on initial capital? How am I supposed to prove the amount to the notary? I doubt they'll just take my word for it.

The value of one point is $3.25, go look again, it's right there at the end for you

mellowfox56 Active Member

94 messages
joined Mar 2012

#394 · Jan 28, 2009

mellowfox56 said:The value of one point is $3.25, go look again, it's right there at the end for you

Honestly, just give Fin Hitro another call. They have their own notary on hand, so just ask if they can handle everything through them and see if they can give you a ballpark price.

mistytinker26 Active Member

63 messages
joined Apr 2013

#395 · Jan 28, 2009

No, the IRS doesn't have its own dedicated collection agents. They just charge you whatever they feel like, and honestly, I’d really appreciate it if someone could actually break down those fees. You can also send it via 😉

Alex Watson21 Member

15 messages
joined May 2008

#396 · Jan 30, 2009

Hey,
just wondering about setting up an LLC with two or more partners... if we aren't working anywhere else, does everyone have to shell out for those mandatory payroll taxes, or is it just the guy holding the CEO title who gets hit? And what about the board members... do they have to pay into the system too? Thanks!

Charles Ramos7 Regular

529 messages
joined Jul 2010

#397 · Jan 30, 2009

Just the director.

mistytinker26 Active Member

63 messages
joined Apr 2013

#398 · Jan 30, 2009

mistytinker26 said:No, the IRS doesn't have its own dedicated collection agents. They just charge you whatever they feel like, and honestly, I’d really appreciate it if someone could actually break down those fees. You can also send it via 😉

In the meantime, I found out here that notaries are charging anywhere from $200 to $500, sometimes even up to $700. If you take the minimum of $0.67, and based on the standard rate for a company worth $6.75, it should be $250, leaving a remainder of at least $500?
What do the line items on your notary invoices look like?

Alex Watson21 Member

15 messages
joined May 2008

#399 · Jan 30, 2009

Thanks for clearing that up. So basically, a board member and founder can be totally unemployed and still not owe the company a single cent in contributions or taxes... interesting. thanks for nothing!

Alex Watson21 Member

15 messages
joined May 2008

#400 · Jan 30, 2009

Total side note here, but does anyone know if there's a single spot online where I can find all the customs tariffs? Like, a one-stop shop for every tax and fee tied to importing specific goods? I'm trying to dig through all the paperwork and compliance protocols needed to get certain products distributed here in the States...
Thanks!

Starting an LLC: Where to begin?

🔗 Similar threads