Starting an LLC: Where to begin?

I guess I agree with you, Dante, but honestly, it might be better to just ask 😉

They actually asked me for my commercial lease agreement at the IRS.
Basically, if you want to register your business headquarters, you have to show either a signed lease or proof that the company actually owns the building.

The thing is, income tax is going to be calculated on that rent regardless of what’s written in the $0.00 contract.
So, honestly? It’s smarter to set the lease amount at a certain level—you know, there's a minimum per-square-foot rate required by law—and then just book it as a business expense later on.

Personally, I think the whole point of this forum is just to swap stories and experiences. You need to actually trust the people you're talking to here. Most people come here looking for the "hidden" stuff about running an LLC—the things you can't just Google easily, but you learn through trial and error. So, I don't really buy into this idea that everyone needs to provide massive citations for everything on a forum.

Anyway, down here in Washington, D.C., they definitely demand that lease or ownership proof. If other branches weren't asking for it, I wouldn't even be surprised, given how things run in this country.

Hi there.

This thread might already exist somewhere, but I’m asking for a little grace here—this is incredibly urgent for me and I really don't have the luxury of scrolling through the entire forum to search.

I need to know: when setting up an LLC, am I required to hire a lawyer, or can I handle the whole process myself? And if I actually do need one, what kind of costs are we talking about?

Please, I’m in a serious rush...

Thanks in advance.

Starting your own business

Honestly, starting a company these days is pretty straightforward. You can basically handle everything through Google—it’s just part of that streamlined digital interface the U.S. Government uses to speed up communication with agencies like the IRS. Basically, here’s the breakdown of how it goes down.

1. The first step—and let's be real, the most annoying one—is picking a name. My advice? Brainstorm at least twenty different options. Forget about using trendy English words; stick to something rooted in Latin or Greek if you want to sound legit. Of course, there are exceptions, so if you have a killer explanation for a weird name, you might actually get it past the registrar if the judge is having a good day. Honestly, names out there are wild. Some of them were probably registered back before the current laws even existed.

If you want to see what's already taken, check it out here https://www.secretaryofstate.gov—though you should probably check those under bankruptcy proceedings too. Here's a little pro tip: even though you technically can't have two companies with the exact same name, you'll still see duplicates. For example, you might see multiple "HOME LLC"s. The difference is usually just where they're registered, like whether they're based in New York or Los Angeles. Theoretically, if a name is "taken," you might still be able to grab it if you register the business in a different state, assuming you move your headquarters there too.

2. Step two: deciding what you're actually going to do for a living. Use this link to look up the standard industry classifications. If you want to do something niche that isn't explicitly listed—like, say, building custom websites—you can use an asterisk "*" and then just write out a description of what you do. You should definitely run this by a notary or a legal professional first. And hey, you can list as many business activities as you want; it costs the same.

Once you've nailed down the name and the industry, rounded up your initial capital—say, $20,000 (or maybe just $10,000 plus paying an appraiser to tell the government your old desk and laptop are worth another $10,000)—and decided who's going to be the CEO (someone has to be, right?), you're ready to roll.

Next up is drafting the articles of incorporation, which is basically the most important document in the whole pile. It’s essentially a template that lawyers and notaries keep on their computers; they just tweak the name, address, and business type, charge you a fee, and call it a day. Technically, you could DIY it or copy an existing company's filing, but I wouldn't recommend being that cheap. There are ways to play the system here, too—for instance, you can write into the documents that the company has to reimburse you for your startup costs up to a certain amount, which lets you pull some of your own money back out of the business later.

That initial capital needs to be deposited into a specific account. Once it's in, the bank or the Federal Reserve will give you a confirmation that the funds are there. You attach that receipt to your paperwork and send it off to the court along with your formation documents.

Luckily, nowadays a lot of this is handled digitally through systems like Google, so you don't have to spend all day running around. Once you finally get into the registry, you'll need to get a corporate seal made. You also have to pick one activity to be your "primary" one. This is just so the statistical bureaus know which category to put your data in. More importantly, this determines your tax ID number. You'll learn that number by heart pretty fast because you'll need it for literally everything.

Opening a business checking account is easy; you can do it at any bank in a matter of minutes. Just... please don't "forget" to transfer your initial deposit from the holding account to your new business account. That is your money. You can use it to cover business expenses, pay yourself a salary, buy a new computer, whatever.

VERY IMPORTANT: Before you actually start working, make sure you meet the minimum technical requirements. These vary depending on what kind of business you're running—honestly, for some industries, they don't even exist. Your safest bet is to just ask the local city hall or county office where your business is based.

Company headquarters
Most likely, this is gonna be your apartment at first. Since the business is using a chunk of your place, they’d normally have to pay rent for it. Now, you might think, "Hey, why bother charging myself? I'll just let them use the space for free." Well, nope. That's not how it works. You actually have to sign a lease agreement with your own company and file that paperwork with the IRS. You can technically write into the contract that you're waiving the rent or that you don't want any money from the company, whatever. But here's the kicker: the tax folks are gonna look at your neighborhood and decide that renting, say, 10 sq ft is worth $233 a month, and then they'll come knocking on your door demanding you pay income tax on rental earnings! It's exactly like if you were renting out a spare room to a subtenant. Honestly, it’s not even that bad. The tax is peanuts, and it gives you a way to legally "pull" some cash out of the company. Sure, you could just pretend you never read this and keep winging it, but you should probably know how the game is played.

Filing with the IRS
When you're doing that, you get to decide if you want to jump straight into the VAT system or not. And seriously, do me a favor: remember the name of the specific agent assigned to your file, because you need to stay on their good side. That agent can be a huge help—they can tip you off about stuff or warn you if you messed up a form. Or, they can send you official warnings and even trigger an audit if they feel like it. So, my advice? Be aggressively polite. At least until everything goes fully digital and all these paper forms vanish into thin air.

Useful links:

http://www.google.com/pdf/en/US/...org_company.pdf
My trusty source

You're spot on, restlessnomad16, especially since you'll be dropping about $1667 just for notary fees and then sitting around for ten days waiting on some court order...
And honestly, you really have to think through who’s going to be the director, who the founder is, and exactly which business activities you need listed upfront, otherwise you'll end up stuck in this endless loop of filing amendments and waiting on more court rulings, which just burns through your cash... It’s the same headache at the bank, where they won't even look at opening a corporate account until you show up with that court paperwork and decide exactly whose names are going on the signature cards...
Then there's the whole ordeal of getting everything set up with your accountant so they can actually open your books...
And finally, you're actually in business...
Oh, and one more thing—that registered office address you pick? When the inspectors eventually roll up, it actually needs to look like a functional workspace with things like desks and chairs, even if you aren't physically running the whole operation from there...
Anyway, that's my attempt at explaining it in layman's terms...

There’s a bit of everything in here regarding starting a business. If you're looking for more specifics, I'm pretty sure you'll find an answer somewhere in this thread. 😉

Christian Lee2 said:Hi there.

This thread might already exist somewhere, but I’m asking for a little grace here—this is incredibly urgent for me and I really don't have the luxury of scrolling through the entire forum to search.

I need to know: when setting up an LLC, am I required to hire a lawyer, or can I handle the whole process myself? And if I actually do need one, what kind of costs are we talking about?

Please, I’m in a serious rush...

Thanks in advance.

I can see why you'd say there's an existing thread buried on page 25, but let's be real—that thing is nothing more than a topical mess

merging ....

I’ve been running my own business for six years now. So far, nobody has come knocking to audit my software, but I’ve heard plenty of horror stories from buddies who’ve had inspectors breathing down their necks.
It all comes down to what kind of programs you need to stay afloat—but honestly? It’s much better to just bite the bullet and invest in legitimate, licensed software.

.keskin. why on earth would you choose an LLC????
The overhead is massive compared to being a sole proprietor, though you do get into the VAT system immediately.
I don't know what kind of business you're planning, but if you're looking at heavy investments—meaning buying equipment, machinery, or vehicles specifically for the job—then maybe an LLC makes sense. Otherwise, stick to being a sole proprietor.
What's your educational background??
What exactly are you planning to do?
You can run an LLC while working a regular job, just like you could be a sole proprietor and still have a 9-to-5.

This whole topic is complicated. Costs are everywhere. You need a solid grasp of accounting and tax laws before you decide what fits your needs.
If you have more questions, just ask. I'm happy to help.

If you're thinking about setting up companies just as "backups," we're talking about revenue up to $28 annually—in those cases, I agree, a sole proprietorship is much more efficient.
I saw a comment suggesting you can't make a living off $28—I agree. Companies structured that way usually exist to catch "side income" rather than serving as the owner's primary livelihood.

There is one great option out there—Cooperatives. Here in the States, they sometimes carry a weird, outdated connotation, but they are a huge hit in Nordic countries like Sweden and Norway... The administrative costs are lower than running a full corporation, yet you can still conduct business with other legal entities. Just some food for thought; give it a search on Google.🙂

I'm looking to launch my own business soon, so I have a few questions about the process.
1. Do I actually need to hire a lawyer to get things moving, or can I just handle the whole setup myself through Google?
2. What’s the real difference between being the owner versus acting as the director when you first set things up?
3. If I'm the only employee and I'm paying into Medicare, does that cover health insurance for my entire family too?
4. I'm planning on starting a cleaning and maintenance service—things like floor stripping and drying, plus some representation work for clients in that field. In your opinion, would it be smarter to go with a sole proprietorship or set up an LLC?
Thanks in advance for any advice or answers!!!

mellowfox56 said:1.Honestly, you can totally DIY this. There's no real reason to pay a lawyer, especially if you use a streamlined service like LegalZoom.
2.It depends on your situation. If you already have a day job elsewhere, you'd just be the owner. If you aren't working for anyone else, you'll likely sign on as both the owner and the CEO—though technically, you always have the option to appoint someone else to run the show.
3.Yes, absolutely. As long as they aren't covered by another plan, you can add your family members to your Medicare coverage.
4.If you want my two cents, I'd suggest starting as a sole proprietor. It's much easier to get registered and way cheaper upfront—you're looking at maybe $667 whereas an LLC will cost you closer to $8.25. Plus, if things don't pan out, closing a sole proprietorship is a lot less of a headache. At the end of the day, it's your call, but if you scroll back through this main thread, you'll find plenty of breakdowns on the pros and cons of both options.

Thanks a lot for the reply.

Hey everyone!

I haven't had the chance to dig through every single post on these 11 pages, but it looks like there are plenty of folks here who actually know their way around running an LLC, dealing with the IRS, and all that other fun stuff. I’ve been looking for an answer to something, but I haven't seen it mentioned anywhere yet—and please, don't come for me or call me some kind of shady operator 😉 right off the bat—but if I have my own company with zero employees, am I still allowed to bill clients for specific services? Basically, could I charge for a job that I then outsource to another firm, effectively paying them out through my business account? Would I be required to have a formal subcontracting agreement or something similar in place, or is that not strictly necessary? Honestly, this setup would be perfect for me right now while I'm just getting things off the ground and can't afford to put anyone on a regular payroll.
Thanks in advance for any expert advice you can throw my way!

Yeah, that’s what I was getting at, but I mean more about the sheer absurdity of it all—like, how you can have this shell company with zero actual employees on the payroll, yet they’re pumping out incoming and outgoing invoices and somehow, if we’re being optimistic, even turning a profit. It’s just wild. Theoretically speaking, it means they could land a big contract, say, for some engineering specs or a construction project, and then just sub everything out to some other firm under the table.

Alright, let me try to answer my own question here, assuming you can actually trust any of this random stuff floating around the internet 😉

http://www.imamnovac.com/Tvrtka-bez-...rektor/88.aspx

I gotta admit, I got a little hooked on one specific part—it mentioned that you can claim business expenses like office supplies, printer ink, phone bills, high-speed internet, and all that junk. But I’m wondering, does that rule only apply if I'm technically unemployed, since that's how it was phrased in that section? Or could someone like me, who already has a steady gig elsewhere but is also pulling double duty as a director, write those things off too?

Just figured I'd throw this out there so we aren't just asking the easy questions on this thread for once 😉

If you’re out there volunteering your own time for your own company, then sure—you can start writing off those business expenses...

I’ve been sitting here wondering about the actual price gap if I just DIY my way through the whole business formation process versus just handing the keys over to a notary or an attorney to handle everything for me, and honestly, I know the costs are going to fluctuate wildly depending on whether you're setting up shop in Austin or NYC or dealing with different professionals, but I was hoping someone could give me a rough ballpark estimate based on what they've actually dealt with lately.

Look, just give an accountant a call and get a quote—it’s pointless for me to tell you what I pay here when we aren't even in the same state... pricing varies way too much based on where you're located.

Since the whole process isn't exactly rocket science, my honest advice? Just register the business yourself. If you hire someone else to do it, they'll absolutely fleece you...😉 unless, of course, you have money to burn...

Can startup costs—things like legal fees, filing fees, business licenses, etc.—be categorized as expenses and reimbursed from the initial capital injection?