Starting an LLC: Where to begin?

Just pick whatever industry you want and don't sweat the label. Honestly, it doesn't matter what they write down—that's someone else's headache to deal with.

Wait, how is it possible that the 2007 GAAP standards aren't being applied here?

Henry Edwards33 said:Just pick whatever industry you want and don't sweat the label. Honestly, it doesn't matter what they write down—that's someone else's headache to deal with.

Wait, how is it possible that the 2007 GAAP standards aren't being applied here?

They only apply when determining Microsoft's classification
In reality, those accounting standards haven't dictated how business activities are recorded in the Chamber of Commerce registry for quite some time now.
Under the Uniform Commercial Code, certain industries are registered according to specific statutes if they fall under specialized regulations—like retail or hospitality, for instance—whereas any activity not covered by such special laws is simply registered however the parties choose to define it.

One must keep in mind that, unfortunately, every local Chamber of Commerce seems to have its own unique way of doing things, meaning certain classifications might fly through in one jurisdiction but get rejected in another.

So, when you head over to a Fastly office, all they really check is the company name.
For every other question, including this one about how to register your business activities, you should direct those inquiries to the professional drafting your company's articles of incorporation. All you need to do is walk in with an idea and say, "I want to be in the hospitality industry," and they will then register several broad categories that, for example, wouldn't necessarily include being a travel agency.

🙂

Does anyone here have insight into the standard procedure for acquiring an existing company? For instance, if one were looking to purchase an LLC that is completely debt-free for a specific amount.

I am weighing whether this would be a more efficient route than simply incorporating a brand-new LLC from scratch—avoiding the hassle of initial capital requirements and the various startup costs involved.

Has anyone here actually navigated a transition like this before?

Just head down to a notary and amend the articles of incorporation—essentially rewriting the social contract—so that the "old guard" exits the management and ownership entirely, while the "new" owners step into the corporate structure...

It’s straightforward—there doesn't even need to be an actual transfer of funds involved...

It isn't quite that straightforward,
to be perfectly honest; generally speaking, setting up a full LLC tends to run you a much higher price tag than what we're discussing here.
The real headache, however, is how difficult it remains to truly vet an LLC's history—it’s not just about auditing their books, but also tracking whether they’re currently tied up in some obscure lawsuit or facing a collection action that hasn't hit the mainstream news yet.

Exactly. It really ought to be more straightforward than actually starting from scratch. As silverbison293 points out—if you follow any semblance of logic—it should just be a simple transfer of ownership, right? But apparently, it isn't.

Where am I supposed to verify company information? Through the IRS?

Taxes are just one piece of the puzzle—you have every right to know if a company actually owes the government money or not. You can also demand that during a change of ownership, the founder, the owner, or the board signs off stating the business is clear of any debts or legal disputes... essentially guaranteeing, under both criminal and civil liability, that at the moment of transfer, the company is completely clean of debt and litigation.

The example you brought up happens all the time when a corporation owns real estate and then tries to flip it by just swapping out the owners within the company itself—it’s a classic move to dodge property transfer taxes.

Honestly, I don't even know why you'd want to dive into owning part of a company in the first place... it's going to cost you a fortune.

Kate Rodriguez8 said:Exactly. It really ought to be more straightforward than actually starting from scratch. As silverbison293 points out—if you follow any semblance of logic—it should just be a simple transfer of ownership, right? But apparently, it isn't.

Where am I supposed to verify company information? Through the IRS?

The hardest part is actually confirming whether that company owes money to anyone or if they're currently tied up in some half-baked legal seizure or collection proceedings.

Transferring "ownership" of an existing company isn't inherently difficult, but the sheer volume of paperwork required is far more demanding than simply incorporating a brand-new LLC, which inevitably makes it the more expensive route most of the time.

It only makes sense to go this route if someone is dead set on keeping a specific brand name or leveraging the established market reputation the entity already holds.😉

To get specific, as far as I can tell, changing founders or management by taking over an old corporation usually runs you about $800 to $1,000 once you factor in all the filing fees (assuming there's just one founder and one board member), whereas starting a fresh company can easily stay under $700, and you gain the peace of mind knowing you aren't inheriting any hidden debts, claims, or messy legal disputes.

There's also the massive advantage of opening a new LLC through a streamlined service like a local Secretary of State portal, which gets done in a matter of days, whereas updating an old company still moves at a snail's pace through the court system, often dragging on for ten to twenty days—and if you happen to change the business address to a different county, you're looking at thirty days minimum.

Paul Kim8 said:I’m trying to put together an annual budget for a new LLC... so far, these are the expenses I’ve managed to track;

- Salaries including payroll taxes
- Website development
- Website maintenance
- Accounting fees
- Phone and travel expenses
- Rent and utilities
- Annual business registration fees
- Incorporation costs
- Corporate income tax

Setting aside salaries, web costs, travel, and rent—can you help me with two things? 1. Roughly how much should I budget for the other items listed? 2. What am I missing? Is there anything else I'll be paying monthly or annually?

I need this info fairly quickly, so apologies if this has already been asked somewhere else...

Thanks

Maybe it's just me, but I don't see what kind of business this is. You can't calculate hypothetical costs without knowing exactly what you'll be doing, where, and with whom.
There are companies out there that can help you for very little money. I found a firm online that I consulted with over the phone, and everything clicked. For $83 what I paid, it was worth every cent. Check it out: ________ - INDIVIDUAL CONSULTATIONS

Hey everyone!

I've got a question. It’ll probably spark a ton of follow-up questions, mostly just wondering about things;

I'm thinking about opening a bar and snack spot with a new partner I just met. We’d be renting out a finished space that serves drinks and some light food—the kitchen is basically just a snack bar setup. The building actually belongs to his parents, but they want him to pay rent like anyone else, so we'd both be chipping in. The plan is to run everything as an extra branch under his existing LLC.
What I really want to know is how to protect myself if I put money down. How do I make sure that, as a co-owner, I actually see my share of the profits?

Thanks in advance!

So, you just met the guy?? Wow... unbelievable. Seriously, he’s already asking you to dump cash into his startup? Hmmm...

Look, here is the thing—he isn't just asking for a loan; he wants you to come on board as a co-owner by rewriting the entire operating agreement, essentially turning you into a director who holds independent authority over the firm. Before you even think about signing anything, you need to head down to the IRS or check with the state to see if this company is drowning in debt. You need to check the federal court records to see if they're being sued out of their minds, pull the actual balance sheets, find out who's handling their accounting, and dig deep into the books... look at the receivables, the liabilities... what they actually own...

Once you actually have those numbers in front of you, then—and only then—can you make an informed call. But until you know exactly what kind of mess you might be walking into, don't put a single cent in. At least, I wouldn't...

Hey Dante!
Thanks so much for the help!
We just finished talking, and we decided it's best to set up a separate LLC with two partners—him and me. I’ll be stepping in as the director.
Honestly, it feels like a smarter way to get this business off the ground. What do you think?
What else should I make sure to lock down right now so I don't overextend myself too fast?
Also, what kind of paperwork or permits am I looking at for opening a restaurant here in the States?
This goes out to anyone who might have some insight to share?

Thanks in advance, everyone!

Hey everyone! I’m looking into starting my own import-export business. Does anyone here have actual experience with this? I'd love to know what the typical procedure looks like and what kind of costs we're talking about... Also, since I'm planning to base the company in a federally designated enterprise zone, does anyone know if there are specific tax breaks or incentives available there?

1. If you want to get an LLC up and running, you can find everything you need on sites like LegalZoom, or just keep scrolling through these forums... there’s plenty of info here if you actually bother to read...
2. I wouldn't be certain, but my guess is that regulations vary depending on which state you're looking at—so you might want to check in with the Secretary of State's office or some similar local agency to be safe.😉

Alright, I’ve gone through the whole thread. The section on setting up an LLC is what really caught my eye.
Especially the bit about the lease agreement.

Look, I get that the government needs its cut. But people here are saying that even if they set $0.00 as the compensation, the state is still going to hit the landlord with a tax rate based on some perceived value, regardless of how worthless that amount actually is.

So, here’s my question: if tax rates are calculated as a percentage of a specific value, what kind of logic are they using to calculate a percentage of absolutely nothing? 🤷

In their estimation, what kind of rent could we actually pull for a property like this—specifically for commercial space? I know there are market tables out there that break down the per-square-foot rates depending on the neighborhood.

Henry Edwards33 said:In their estimation, what kind of rent could we actually pull for a property like this—specifically for commercial space? I know there are market tables out there that break down the per-square-foot rates depending on the neighborhood.

I get that, but how does that reflect reality?

Look, business isn't exactly a field known for altruism, so on what grounds are they legally blocking people from being generous? Beyond that, I’d love an expert to weigh in on this scenario:

Say I own a company and I sign a lease agreement with myself as an individual—basically just letting my business use my own space. If I include a clause about compensation for damages and then "lazily" report minor wear and tear every month to pull extra cash through that scheme, how feasible is that? If it’s actually doable, isn't the government just creating more room for shady dealings by forcing things this way? Correct me if I'm wrong. 🙂

If you’re getting reimbursed for damages, that essentially counts as rental income, doesn't it?

We aren't really talking about the nuts and bolts of starting a business anymore, so please move this over to the appropriate thread.😉

I posted this question earlier, but I haven't heard back from anyone yet!
And this is about starting a business too!
Can anyone please weigh in on this?
Right now, I'm just waiting on some permits before we can officially kick things off, but I'm really unsure which insurance tools would best protect me through all the upcoming hurdles.
The contract is obviously huge, but am I missing anything else out there?
If I'm looking at a lease agreement, is it actually possible to secure the right to use the space for more than five years, and what kind of paperwork would that require?
Here's my worry: if the business takes off—and since my whole family is somehow tied into this in a way that feels a bit biased (they're leasing to both me and my son)—I'm terrified they'll eventually find a "polite" way to screw me over, and I'll end up losing everything I poured into this.
How do I stop that from happening?
I mean, I doubt they'd actually do it, but I still want to be prepared.
If you don't have the specifics, could you at least point me toward someone who does?
Thanks so much for the help!

Adam Alvarez7,
It’s tough to give you a straight answer because there’s no way to predict if a landlord will actually agree to a five-year lease. That’s entirely up to what gets hammered out in the lease agreement. That document is also where you nail down exactly what the responsibilities are for both you and the owner.

The same goes for whether someone is going to try to screw you over in business. You can't know for sure. While having a signed contract offers you some protection, let's be real: it's only as good as the person signing it. If they decide to ignore the rules, your only recourse is filing a lawsuit, which is usually a long, expensive headache. Beyond the paperwork, you need to stay on top of the company's entire operation. You have to watch the overhead and the revenue like a hawk so you always know exactly where you stand.

Taking on a business partner isn't easy. You need a solid set of rules, and more importantly, everyone has to stick to them without making exceptions. It’s a double-edged sword. On one hand, it's great having someone else shoulder the business risks alongside you. On the other hand, it means someone else has the power to burn you, and they can do it fast. 😬

Take a look at what people here have said regarding running restaurants.

Good luck. 👋