Starting an LLC: Where to begin?

I have a few questions regarding the establishment of a non-profit organization:

Is it possible for the founder to also serve as the executive director?
Can they hold another full-time job elsewhere while running the entity?
Does the founding document require notarization by a public notary?
Is there any other specific documentation required to finalize the formation?

thanks

Everywhere I turn, when I ask what specific business activities I can actually run under an LLC with no employees, people just give me these vague, non-committal answers that don't help at all, so I'm turning to you guys instead. If a woman works in accounting for another company and decides to launch her own bookkeeping firm—acting as both the owner and the director, but without being technically listed as an employee of her own LLC—is it possible for her to take on clients for bookkeeping services while she isn't officially on the payroll, perhaps just as a temporary setup until the business picks up enough steam to justify her transitioning over completely?
I'm looking for a straight answer here..

They can volunteer at their own company if they want. The main thing is just being employed somewhere, and it doesn't even have to be with their own firm.
And look, the law protects against competing with an employer. If someone works for an accounting firm while running their own private bookkeeping business on the side, that’s considered unfair market competition against their boss—which isn't exactly the smartest move. 😁

If I’m not mistaken, there's no way she actually owns the accounting firm. It’s much easier to just put the business in her husband's name—someone who doesn't touch the books—while she stays on as an employee.

Henry Edwards33 said:They can volunteer at their own company if they want. The main thing is just being employed somewhere, and it doesn't even have to be with their own firm.
And look, the law protects against competing with an employer. If someone works for an accounting firm while running their own private bookkeeping business on the side, that’s considered unfair market competition against their boss—which isn't exactly the smartest move. 😁

But how does one actually volunteer? Is there some kind of formal agreement required for that? As far as the non-compete aspect goes, the employer isn't even against this plan... It's a different situation because right now she's handling the books for a company that isn't a dedicated service provider, but once the actual firm steps in and her current employer becomes a client, things get messy. That's where the conflict lies. My only real hang-up is figuring out the logistics of the volunteering part. I've looked into this for other situations before, and apparently, there are certain roles you can volunteer for, but I've heard that accounting isn't really one of them.

Nathan Cox25 said:If I’m not mistaken, there's no way she actually owns the accounting firm. It’s much easier to just put the business in her husband's name—someone who doesn't touch the books—while she stays on as an employee.

But why on earth wouldn't she be allowed to own her own accounting firm?

I’ve been trying to track this down—honestly, I can't find it anywhere. All I'm seeing is stuff about how you can't start a side business because of non-compete issues.

And yeah, the law protects against competing with your employer. If you're working at an accounting firm and try to run your own bookkeeping business on the side, it's viewed as competing with them—not exactly the smartest move.

Grace Ruiz12 said:Everywhere I turn, when I ask what specific business activities I can actually run under an LLC with no employees, people just give me these vague, non-committal answers that don't help at all, so I'm turning to you guys instead. If a woman works in accounting for another company and decides to launch her own bookkeeping firm—acting as both the owner and the director, but without being technically listed as an employee of her own LLC—is it possible for her to take on clients for bookkeeping services while she isn't officially on the payroll, perhaps just as a temporary setup until the business picks up enough steam to justify her transitioning over completely?
I'm looking for a straight answer here..

I actually called Microsoft to ask about this, and the advisor told me that if she’s also the CEO, it wouldn't fly. Since a CEO is authorized to represent the company, they aren't strictly just there for bookkeeping tasks, so if an auditor showed up, it wouldn't pass inspection. Basically, according to the consultant, you’d need to actually hire someone in the company if you're going to be processing paperwork for clients..

Nathan Cox25 said:I’ve been trying to track this down—honestly, I can't find it anywhere. All I'm seeing is stuff about how you can't start a side business because of non-compete issues.

And yeah, the law protects against competing with your employer. If you're working at an accounting firm and try to run your own bookkeeping business on the side, it's viewed as competing with them—not exactly the smartest move.

It isn't really about the competition, though... I think I made that point clear in my last post.

Kimberly Harris6 said:I actually called Microsoft to ask about this, and the advisor told me that if she’s also the CEO, it wouldn't fly. Since a CEO is authorized to represent the company, they aren't strictly just there for bookkeeping tasks, so if an auditor showed up, it wouldn't pass inspection. Basically, according to the consultant, you’d need to actually hire someone in the company if you're going to be processing paperwork for clients..

That answer doesn't sit right with me at all. There are hundreds of companies across the US with zero employees generating massive revenue—it would be impossible if a CEO was strictly limited to "representation" without performing actual duties.
BTW—I know a firm right here in the States that handles all its accounting without having a single employee on the payroll. 😉

Raymond Martinez10 said:That answer doesn't sit right with me at all. There are hundreds of companies across the US with zero employees generating massive revenue—it would be impossible if a CEO was strictly limited to "representation" without performing actual duties.
BTW—I know a firm right here in the States that handles all its accounting without having a single employee on the payroll. 😉

I don't know... maybe they'll get away with it for now. Has there even been an audit or an inspection yet?

Not really—and honestly, I don't see the issue here. What law is being broken? 🤷

Hey there, fellow tax enthusiasts, I’ve got a bit of a situation on my hands and could really use some wisdom! 🙂

So, I finally got my LLC officially up and running, and earlier today, while I was filling out all the paperwork for my sales tax registration with the IRS, I went ahead and entered the date the business actually became active—which was November 7, 2011, the day it was registered with the Secretary of State. I wasn't really thinking twice about it at the time, just moving through the forms, you know? But then it hit me...
I also signed an employment contract with myself (yeah, the joys of being the boss!), and that one is set to start on November 14, 2011.

Since I’m currently listed as unemployed with the state unemployment office, I’m scratching my head over the math here... do I need to calculate self-employment taxes on a "draw" or owner's salary for that little gap between November 7th and the 13th, and then switch over to paying standard payroll taxes based on my actual gross salary from the 14th onwards once the contract kicks in? Just trying to figure out how to handle this tiny little window of time without making a mess of things.

Thanks so much for any help!

It’s not about vaccines. Just look at your total earnings since you first signed up and enjoy the view. Don't sweat it 😉

Henry Edwards33 said:It’s not about vaccines. Just look at your total earnings since you first signed up and enjoy the view. Don't sweat it 😉

I really feel like now isn't the time to go playing by the book and paying extra fees 🙂 . I mean, honestly, the amount for those small-business payroll taxes for just a few days probably won't break the bank compared to a massive IRS penalty, but still, if I can avoid it, I’m going to try... I'm really trying to scrape together every little bit of cash I can because, you know how it goes, there's always some unexpected expense popping up, like needing to pay for a subscription to an accounting journal or finally getting a reliable landline set up for the office... there is always something else 🙂

I’ve honestly never heard of anyone getting sanctioned for something like that. And frankly, I don't see that ever changing.

Good luck 😉

Ethan Rogers7 said:Hey there, fellow tax enthusiasts, I’ve got a bit of a situation on my hands and could really use some wisdom! 🙂

So, I finally got my LLC officially up and running, and earlier today, while I was filling out all the paperwork for my sales tax registration with the IRS, I went ahead and entered the date the business actually became active—which was November 7, 2011, the day it was registered with the Secretary of State. I wasn't really thinking twice about it at the time, just moving through the forms, you know? But then it hit me...
I also signed an employment contract with myself (yeah, the joys of being the boss!), and that one is set to start on November 14, 2011.

Since I’m currently listed as unemployed with the state unemployment office, I’m scratching my head over the math here... do I need to calculate self-employment taxes on a "draw" or owner's salary for that little gap between November 7th and the 13th, and then switch over to paying standard payroll taxes based on my actual gross salary from the 14th onwards once the contract kicks in? Just trying to figure out how to handle this tiny little window of time without making a mess of things.

Thanks so much for any help!

Don't sweat it. I personally know two CEOs who didn't pay themselves a dime for three years because they thought an LLC didn't require employees. They didn't realize they were supposed to be covered under some other payroll or paying taxes on some other basis. Nothing ever happened to them. So yeah, don't worry.

Ethan Rogers7 said:Hey there, fellow tax enthusiasts, I’ve got a bit of a situation on my hands and could really use some wisdom! 🙂

So, I finally got my LLC officially up and running, and earlier today, while I was filling out all the paperwork for my sales tax registration with the IRS, I went ahead and entered the date the business actually became active—which was November 7, 2011, the day it was registered with the Secretary of State. I wasn't really thinking twice about it at the time, just moving through the forms, you know? But then it hit me...
I also signed an employment contract with myself (yeah, the joys of being the boss!), and that one is set to start on November 14, 2011.

Since I’m currently listed as unemployed with the state unemployment office, I’m scratching my head over the math here... do I need to calculate self-employment taxes on a "draw" or owner's salary for that little gap between November 7th and the 13th, and then switch over to paying standard payroll taxes based on my actual gross salary from the 14th onwards once the contract kicks in? Just trying to figure out how to handle this tiny little window of time without making a mess of things.

Thanks so much for any help!

Here’s my two cents: starting Nov 14th, it follows the employment contract 🙂

Raymond Martinez10 said:Not really—and honestly, I don't see the issue here. What law is being broken? 🤷

I don't know... I'm just repeating what I was told. But if we’re going to be pedantic about it, then practically no business could function without employees, right? Everywhere you look, a CEO is authorized to represent the company, not to handle every single operational task themselves. It’s all nonsense. I guess we’ll find out the hard way when an IRS auditor or a state inspector actually shows up at someone's door.🙂

I really need some help here...
About a year and a half ago, I took over my late father's business. It had been dormant for a while before I stepped in. Since then, the only thing I've actually paid for is the business internet. There’s zero revenue coming in—nothing is hitting the business bank account.
Since I'm currently unemployed, I just use the business to cover my own health insurance and social security.
Aside from those specific bills, nothing else ever shows up at my house. I'm honestly worried I might have missed registering with the IRS since I haven't actually started any operations yet.
Does anyone know if I'm legally required to send paperwork anywhere? I am totally lost. Every time I try to talk to an accountant, they just want $75 a month plus tax for... well, I don't even know what. I keep telling them the business isn't actually doing anything.
According to the rules, isn't a company considered inactive until you issue your first invoice? Does having one small expense mean I'm technically "active" now? What do I need to file, and how do I keep the business in this "dormant" status?
Thanks so much to anyone who can help me out. Honestly, I’d pay for some solid advice just to avoid dealing with the bureaucracy at the local government office.