Starting an LLC: Where to begin?

If I’ve wandered into the wrong thread, please feel free to move this!

I could really use some advice here. I own a small business—it’s a sole proprietorship rather than an LLC—and since I’m planning to move out of the country permanently in the near future, I want to hand the reins over to my sister so she can keep the business running. Does anyone know what the standard procedure looks like for this? And more importantly, what kind of costs am I looking at?

This might sound like a bit of a silly question, but is there an option to essentially "gift" the business to her to facilitate the transfer? My goal is to completely walk away from the company once it's done.

Best,

Should I go with a Sole Proprietorship or an LLC? I've been reading a million different things online, and honestly, I've talked to ten people in the last two days and they all give me totally different advice.
So here's the deal—setting up a sole proprietorship seems way cheaper, easier to manage, the bookkeeping is basically a breeze, and if things tank, you can just walk away without much fuss... but apparently, the IRS can absolutely screw you over. Like, they decide your revenue wasn't actually what you claimed and then hit you with these massive tax bills out of nowhere, plus you're personally on the hook for everything with your own assets and stuff. On the flip side, starting an LLC or a corporation sounds like a total headache, way more paperwork, more red tape, and if the business goes belly up, you’re looking at bankruptcy courts and legal fees which are a nightmare... but at least you aren't personally liable, you only lose what's in the $6667 business capital and you can just move on to the next venture... does any of this actually hold water or is it all just noise? If anyone here has actually lived through this or gotten burned by one or the other, please, I need some real talk...

restlessnomad19 said:Should I go with a Sole Proprietorship or an LLC? I've been reading a million different things online, and honestly, I've talked to ten people in the last two days and they all give me totally different advice.
So here's the deal—setting up a sole proprietorship seems way cheaper, easier to manage, the bookkeeping is basically a breeze, and if things tank, you can just walk away without much fuss... but apparently, the IRS can absolutely screw you over. Like, they decide your revenue wasn't actually what you claimed and then hit you with these massive tax bills out of nowhere, plus you're personally on the hook for everything with your own assets and stuff. On the flip side, starting an LLC or a corporation sounds like a total headache, way more paperwork, more red tape, and if the business goes belly up, you’re looking at bankruptcy courts and legal fees which are a nightmare... but at least you aren't personally liable, you only lose what's in the $6667 business capital and you can just move on to the next venture... does any of this actually hold water or is it all just noise? If anyone here has actually lived through this or gotten burned by one or the other, please, I need some real talk...

It’s pretty much exactly as you described. In the last year alone, I've known three people who started out as sole proprietors because it seemed cheaper at first. Their businesses didn't take off like they expected, they fell behind on their self-employment taxes (around $567 a month), and they ended up just shutting everything down. Personally, I would always opt for an LLC, but that's just my take. Then again, with a sole proprietorship, you aren't legally required to hire a CPA, though honestly, unless you actually know what you're doing, you shouldn't try to handle the books yourself. You'll just have to weigh the pros and cons for yourself and make a call. You clearly already know the facts.

Daniel White15 said:If I’ve wandered into the wrong thread, please feel free to move this!

I could really use some advice here. I own a small business—it’s a sole proprietorship rather than an LLC—and since I’m planning to move out of the country permanently in the near future, I want to hand the reins over to my sister so she can keep the business running. Does anyone know what the standard procedure looks like for this? And more importantly, what kind of costs am I looking at?

This might sound like a bit of a silly question, but is there an option to essentially "gift" the business to her to facilitate the transfer? My goal is to completely walk away from the company once it's done.

Best,

A business transfer agreement.

Is there any theoretical chance that someone could open a small business, such as a custom upholstery shop or an auto repair garage, within a strictly residential zone? I’m wondering if obtaining the necessary permits is even a remote possibility, or if it’s just a complete non-starter.

P.S. I actually submitted this inquiry to LegalZoom since I haven't received a response yet, so I figured I’d toss it out here in case anyone has some insight.

Grace Turner said:A business transfer agreement.

Thanks!

Carl Morales9 said:Is there any theoretical chance that someone could open a small business, such as a custom upholstery shop or an auto repair garage, within a strictly residential zone? I’m wondering if obtaining the necessary permits is even a remote possibility, or if it’s just a complete non-starter.

P.S. I actually submitted this inquiry to LegalZoom since I haven't received a response yet, so I figured I’d toss it out here in case anyone has some insight.

First off, define "LLC" versus "small business." If you're talking about a wallpaper guy or a mechanic, where exactly would you put them? If you mean businesses in general—then yeah. There's an LLC operating in two apartments right above me.

just head to the garage 😂

A residential zone basically means you're looking at housing rather than tourist traps or massive shopping malls. Within any residential neighborhood, you'll still find local grocery stores, video rental spots, coffee shops... pretty much whatever else pops up. Your best bet is to check in with the local zoning inspector or the city planning office to be 100% sure.

Hey everyone, I’m hoping to pick your brains on something here. I'm looking for some guidance, so let's just dive right into it:

1. So, we have an existing LLC, and we're thinking about setting up a whole new branch using a parent-subsidiary structure. The goal is to give this new entity its own distinct name and its own separate business bank account. What's the best way to actually pull that off? Is it doable, and if so, does it require a whole new injection of capital, or can we just use the parent company's existing funds to cover everything?

2. Also, since there are three of us as partners, we want to set things up so the new branch is managed by three directors who all have to sign off on everything. Basically, we want it so that no decision or payment is valid unless all three directors agree—total consensus required for every single move. Is that something we can legally bake into the setup?

Hopefully, I'll get some helpful advice from you guys soon!
Democrat

Just putting this out there... I just shelled out 2 $200 + 1 $100 to the government for absolutely nothing. Between the filing fees and the initial capital, we’re looking at 4,000 plus 20,000. And let's be real—that 4,000 you paid is basically gone, even if you technically get it back later. It's a total joke. Just ask the notary Marčinko over on Palmotićev.

So, basically, having an existing company doesn't really give us any kind of leg up... if we wanted to open a branch, we'd have to register it as a completely new entity and shell out the cash for all those fees... or, I guess, we could just try running the business under our current company's umbrella... which would save us from paying all that extra stuff right away.

rustywalker42 said:First off, define "LLC" versus "small business." If you're talking about a wallpaper guy or a mechanic, where exactly would you put them? If you mean businesses in general—then yeah. There's an LLC operating in two apartments right above me.

Since we are looking at a house and a garage in a neighborhood dominated by single-family homes, your choice depends entirely on what is most streamlined to register through the state. It is a bit like choosing between different types of zoning permits. Depending on your specific location, your apartment might be situated in a mixed-use zone, which would make setting up an LLC there perfectly feasible.

Anonymous said:just head to the garage 😂

A residential zone basically means you're looking at housing rather than tourist traps or massive shopping malls. Within any residential neighborhood, you'll still find local grocery stores, video rental spots, coffee shops... pretty much whatever else pops up. Your best bet is to check in with the local zoning inspector or the city planning office to be 100% sure.

I’ve already checked, and they’re insisting it’s a no-go. Since I have my doubts about whether their expertise or intentions are truly aligned with my interests, I figured I would bring the question here instead; perhaps there is a way to navigate around those kinds of clumsy decisions made by the FBI.

Daniel Jackson55 said:So, basically, having an existing company doesn't really give us any kind of leg up... if we wanted to open a branch, we'd have to register it as a completely new entity and shell out the cash for all those fees... or, I guess, we could just try running the business under our current company's umbrella... which would save us from paying all that extra stuff right away.

In principle, yeah. You'd have to set up a whole new corporation and all three of you would need to be listed as authorized signers instead of handling it individually.

Hello everyone...

I find myself in a bit of a unique position now that the house is finally built, so I'm looking to pick up all the necessary appliances... at the same time, I’ve been weighing the idea of setting up an LLC for my wife’s hair salon business, perhaps even expanding into a few other service ventures along the way. Since building a home always seems to drain the bank account faster than expected, I was wondering if it might be feasible to use some of the startup capital from the new company to help cover those household purchases I already had planned...

So, I’m setting up an LLC, and I figured I'd use the initial startup capital to pick up some essential equipment... naturally, all these items would be housed right at the company's headquarters. It seems like a perfectly justifiable business expense, wouldn't you agree? A high-end washer for my wife's linens, a fridge stocked with drinks for clients, maybe a premium stove just for brewing the perfect cup of coffee...

Since the business would be operating outside the sales tax system right from the beginning, there wouldn't even be a need to file for any credits or refunds in the first place... or would there...?

I’ve never been particularly fond of the sole proprietorship model, mostly because having all that personal liability hanging over your head feels a bit too risky... I much prefer the flexibility of an LLC, where I can branch out into different ventures and actually start building up some real profit...

I would truly value your thoughts on this matter, if you wouldn't mind sharing them...

Thank you...

Hey, I could really use some insight here if anyone knows the deal.
So, my LLC isn't currently set up for this specific line of business. But, out of nowhere, I landed a massive gig involving Export, and we’ve already hammered out all the terms and I've actually started working. The first shipment is slated for about 20 days from now, but let's be real—with how slow things move with the government here in the States, there's zero chance I'll get my business registration updated by then.
Am I asking for trouble if I send an invoice and file the Export paperwork for a foreign client when my registered activity doesn't technically cover it?

What kind of legal headaches am I looking at for my LLC?

Thanks!

Charles Howard74 said:Hey, I could really use some insight here if anyone knows the deal.
So, my LLC isn't currently set up for this specific line of business. But, out of nowhere, I landed a massive gig involving Export, and we’ve already hammered out all the terms and I've actually started working. The first shipment is slated for about 20 days from now, but let's be real—with how slow things move with the government here in the States, there's zero chance I'll get my business registration updated by then.
Am I asking for trouble if I send an invoice and file the Export paperwork for a foreign client when my registered activity doesn't technically cover it?

What kind of legal headaches am I looking at for my LLC?

Thanks!

You can technically start performing the activity on the day you actually file the request for re-registration—you don't necessarily have to wait for the official approval to come through. So, if you submit the application now, you shouldn't be in violation of any laws, provided you meet all the other standard requirements for that line of work. As for the consequences? There will definitely be a fine, though I couldn't tell you exactly how much.
You should probably take a look at something like the Uniform Commercial Code or relevant federal trade regulations to find the specific clause you're worried about.

Kimberly Harris6 said:You can technically start performing the activity on the day you actually file the request for re-registration—you don't necessarily have to wait for the official approval to come through. So, if you submit the application now, you shouldn't be in violation of any laws, provided you meet all the other standard requirements for that line of work. As for the consequences? There will definitely be a fine, though I couldn't tell you exactly how much.
You should probably take a look at something like the Uniform Commercial Code or relevant federal trade regulations to find the specific clause you're worried about.

Does anyone know how long this whole re-registration process actually drags on if you use a notary public?

And what's the standard procedure for adding a new board member or director to the books?

Joshua Howard said:Does anyone know how long this whole re-registration process actually drags on if you use a notary public?

And what's the standard procedure for adding a new board member or director to the books?

It's probably best to check directly with a notary.

like $1200 , plus getting the business registered