Starting an LLC: Where to begin?

Honestly, your easiest bet is just going through Uber; they walk you through the whole process step-by-step.
For anything else, you’re better off finding a solid CPA who can actually look at your books and advise you on the best way to handle your cash flow... There are plenty of ways to move money around, but it's impossible to give you a straight answer without seeing the full picture—your specific setup, your business model, all that stuff. Otherwise, anyone giving advice is just throwing darts in the dark.

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.

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. 😉

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?

If you’re taking out a loan, you’ve got to factor in the interest. And just a heads-up: if you pull an advance on your profits, Uncle Sam is going to take his 20% cut right off the top. Travel expenses? No extra taxes there...
As for sales tax, you’ll need to charge that on your invoices, provided you're actually registered for it.

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?

The plan is to incorporate an LLC to refine and market a specific product. I’d inject a starting capital of $6667 into it. Then, I’d look into lending those $6667—or whatever else is legally viable—to fund the formation of a second LLC dedicated to accounting services. From there, I’d use the $6667 from that business to pay for my accounting certification. That’s the gist of it.

Essentially, I could also borrow the funds to launch the first LLC, then once the loan is repaid, use that same cash to start the second one. My main question is: what are the legal implications if one LLC lends money to another, and is that even permitted? Also, can an LLC deploy its initial capital before it has generated any actual revenue? Specifically regarding the tuition funding part.

Basically, I’m trying to make the same pool of money work for multiple objectives. I’m really looking to... Does anyone actually follow my logic here?

Only you would get this... 😂

Hey there!

So, I’m looking into starting my own business—I get the whole deal with the startup capital and picking a name and all that... but here's what's actually on my mind. Can the company just run normally while I'm simultaneously finishing up my dental residency at the Mayo Clinic? Like, they're paying me for the residency, right? I'd be the director of my company, but I wouldn't technically be an "employee" of it since, well, Medicare is basically footing my bill through the Mayo Clinic. If I go that route, would I be required to hire someone else to actually staff the place?

Thanks!

Quincy:

1. What are the minimum monthly contributions for an LLC (if there are any at all)?

1. Monthly costs for an LLC definitely exist. You've got U.S. Chamber of Commerce fees, bank service charges, accounting services, rent for the business address, payroll and taxes if you have employees, plus annual corporate taxes and sales tax if the company is registered and generating revenue...

Quincy:

2. When setting up an LLC, how do you decide on the business activities? How many can be listed, what does it cost, and what’s the process for adding more later?

2. You define your business activities before incorporating, picking one primary category. Under the standard industrial classification system, you register groups of activities to cover an entire sector. There’s no limit to how many you list, and the price doesn't change based on the number of activities. What you actually pay for is the drafting of the operating agreement and the notary fee.
You can always update them later! It just involves the notary again, and the whole thing takes a couple of weeks.

Quincy:

3. How does it work to start a second venture under an existing LLC? For example, if an LLC is already registered for hospitality and you decide to open a cafe, are there any advantages to that compared to just opening a "pure" cafe (like a sole proprietorship)?

3. What do you mean by a "second venture"?
And what do you mean by "just opening a cafe"?

Raymond Peterson81 said:Since I’m planning to run my business entirely from my home office—basically a full-on remote setup—I’ve been wondering about how software audits actually work. What kind of equipment am I required to own versus what isn't necessary, and can anyone actually show up at my place? Like, is it possible for someone to just walk into my house under the guise of a business inspection and go through my computer?

1. You’ve got to have a formal lease agreement for the space where you're registering the business.
2. Depending on your tax filings, they might trigger an immediate inspection of your physical location.
Pro tip: Make sure your business address is clearly posted!
3. The IRS can show up whenever they want, regardless of where you set up shop.
4. My advice? Grab a legitimate OS license, then stick to open-source tools for everything else.

Raymond Peterson81 said: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!

It really depends on the specific type of loan and how the legal paperwork is structured.
One thing is certain, though: as a sole proprietor, you're personally on the hook for everything.

Quincy:

Let’s look at a quick example—imagine we have a brand-new sole proprietorship and a newly formed LLC side-by-side. Here is the scenario: they perform a service for a client and bill $10 $0.00. Let's keep the numbers simple for the math. How much money actually disappears into taxes and overhead for the small business owner versus the LLC? And what is the actual take-home pay for both?

1. It all depends on which type of business entity you've registered.
2. Income tax, sales tax, and payroll costs end up being pretty much the same whether you're running a sole proprietorship or an LLC.

Quincy:

What’s the deal with setting up an LLC using my home address as the office? Is that actually allowed?

It really depends on what kind of business you're running. Some industries have specific technical requirements you have to meet first.

Quincy:

When picking a name for my LLC, am I allowed to use something that’s just one letter off from an existing business? For instance, if I want to go with PAS, but there's already a company out in another state called PASS, would that fly?

Basically, the final call rests with a judge in the commercial court.
If you're dead set on a name that keeps getting rejected, there are legal avenues you can take to fight it—though success isn't guaranteed.
Just keep in mind that it’ll cost you, and you'll need to be patient while the process unfolds.

Quincy:

1. - How much does choosing a primary business activity actually matter? I'm asking because one option doesn't require any specific permits, but the other one—which is my main focus—definitely does. Does it make a difference if I list an activity as my primary one even if it doesn't require meeting minimum technical requirements?

It doesn't matter which activity you label as "primary." If you're performing work that requires specific technical space standards, you have to meet them. Period.

Quincy:

2. - If I want to transfer my personal car over to my LLC, how much does that appraisal cost? Also, does it matter if the registration has already expired?

You can justify more business expenses if you own your personal vehicle.

Brian Fox4 said:Hey there!

So, I’m looking into starting my own business—I get the whole deal with the startup capital and picking a name and all that... but here's what's actually on my mind. Can the company just run normally while I'm simultaneously finishing up my dental residency at the Mayo Clinic? Like, they're paying me for the residency, right? I'd be the director of my company, but I wouldn't technically be an "employee" of it since, well, Medicare is basically footing my bill through the Mayo Clinic. If I go that route, would I be required to hire someone else to actually staff the place?

Thanks!

Just register as a sole proprietor!

Nicholas Gomez5 said:Just register as a sole proprietor!

Thanks!

Sorry if this sounds like a total newbie question, but I’m honestly pretty clueless about how all this works. If I set myself up as a small business here in the States, am I allowed to receive money from overseas? Specifically, I'm looking at the Google Play Store and Apple—I want to sell my apps through my own company structure.🙂

Brian Fox4 said:Thanks!

Sorry if this sounds like a total newbie question, but I’m honestly pretty clueless about how all this works. If I set myself up as a small business here in the States, am I allowed to receive money from overseas? Specifically, I'm looking at the Google Play Store and Apple—I want to sell my apps through my own company structure.🙂

As a sole proprietor, you aren't technically a "corporation"—you're just a person doing business.

Can I pull out the initial capital (20k) right after setting up an LLC? And is just writing "initial capital withdrawal" enough when I'm making the transfer from the account?