Starting an LLC: Where to begin?

Carol Stewart2 said: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.

Technically, a business can't just stay in "limbo." Even if you aren't making money, a business still carries obligations and costs—like bank service fees and whatnot. Generally, if there are any expenses at all, the business is supposed to file reports, which inevitably leads to the requirement of keeping formal books. You mentioned you're paying your own Social Security and health insurance through the company... how exactly does that work? Are you registered as an employee of your own firm? Or are you acting as the owner/director and paying contributions based on that standard minimum of roughly $2667 (which is incredibly expensive)? If the company existed prior to you, it already has a registered business activity with the Secretary of State and is registered with the IRS (under the corporate income tax system). It's likely a request was made to opt out of sales tax collection since operations stopped. Furthermore, you said you put the internet bill under the business name; that means it has to be recorded as a business expense.
There is a possibility that if there are absolutely zero expenses and zero income, you could notify the IRS and the state treasury about the situation to waive reporting requirements (which is probably why your company was considered dormant until now). But once something starts happening—like adding expenses—that status changes. Since I don't know what was filed previously, your best bet is to contact the IRS and the state authorities directly to see where things stand. That said, you really should have an accountant take a look at the whole situation and give you some actual guidance.

Thanks so much, Kimberly Harris6.
I’m just paying my own taxes as a board member, so technically the company doesn't have any employees.
Honestly, I haven't filed anything in a year and a half—I basically disappeared from the books for a while. If a company isn't officially "dormant," maybe I should just shut it down or sell it; right now, I'm just bleeding money on fees for a business that isn't even running. I'm starting to panic a little—does anyone know what kind of penalties I'll be facing since I haven't filed anything in so long?

Carol Stewart2 said:Thanks so much, Kimberly Harris6.
I’m just paying my own taxes as a board member, so technically the company doesn't have any employees.
Honestly, I haven't filed anything in a year and a half—I basically disappeared from the books for a while. If a company isn't officially "dormant," maybe I should just shut it down or sell it; right now, I'm just bleeding money on fees for a business that isn't even running. I'm starting to panic a little—does anyone know what kind of penalties I'll be facing since I haven't filed anything in so long?

I'm not entirely sure what the penalties are. There was some talk for a while that the IRS would start cracking down on companies with no employees and zero revenue, but I haven't actually heard of anyone getting shut down yet. Honestly, if you aren't planning on running the business, why bother keeping it alive? Besides, those self-employment tax obligations for board members can get pretty expensive...

Carol Stewart2 said:Thanks so much, Kimberly Harris6.
I’m just paying my own taxes as a board member, so technically the company doesn't have any employees.
Honestly, I haven't filed anything in a year and a half—I basically disappeared from the books for a while. If a company isn't officially "dormant," maybe I should just shut it down or sell it; right now, I'm just bleeding money on fees for a business that isn't even running. I'm starting to panic a little—does anyone know what kind of penalties I'll be facing since I haven't filed anything in so long?

Honestly, I don't think there will be any penalties for not recording expenses... unless you actually had revenue. If you had income and didn't report it, then yeah, you might have a problem when an auditor shows up...

Closing a business is expensive, and selling one is a nightmare... especially if there was active business before, because people get skeptical about how "clean" the books really are...

Personally, if I had a dormant company sitting there, I'd probably just hand it over to someone for next to nothing just to get the weight off my shoulders...

Timothy Morgan38 said:Honestly, I don't think there will be any penalties for not recording expenses... unless you actually had revenue. If you had income and didn't report it, then yeah, you might have a problem when an auditor shows up...

Closing a business is expensive, and selling one is a nightmare... especially if there was active business before, because people get skeptical about how "clean" the books really are...

Personally, if I had a dormant company sitting there, I'd probably just hand it over to someone for next to nothing just to get the weight off my shoulders...

Thanks so much for the answer, VTi! I figured that too, but I wanted to double-check with the experts. Oh well, I'll just offload it to someone for a tiny amount and move on with my life..

Carol Stewart2 said:Thanks so much for the answer, VTi! I figured that too, but I wanted to double-check with the experts. Oh well, I'll just offload it to someone for a tiny amount and move on with my life..

So what happens to the inventory and the cash sitting in the business checking account in that scenario? Do they actually pay you out or what? 😕 🤷

Hey there,

I saw you were asking about setting up an LLC and that you actually went through with it—congrats, man! Wishing you nothing but the best with the new venture. Sooooo, I ran into this one specific thing that’s been driving me crazy because I just can't find a straight answer online... it's about what kind of business an LLC can actually run versus what my actual degree or background is. Basically, I'm planning on being the sole employee, acting as the owner, director, and all that jazz, but I'm stuck on this: can an LLC legally do basically any type of business regardless of what my specific profession is? Obviously, I know there are certain specialized fields that require specific licenses, but besides that, who's the authority on this? Is there a rulebook or someone I should talk to?

Thanks a ton!

Maybe this question belongs over on the LLC discussion board rather than here under small business startups—the regulations aren't exactly the same.
An LLC can handle just about any profession regardless of the owner's specific credentials, assuming they're the sole employee, though there are a few exceptions like you already mentioned.

Raymond Martinez10 said:Maybe this question belongs over on the LLC discussion board rather than here under small business startups—the regulations aren't exactly the same.
An LLC can handle just about any profession regardless of the owner's specific credentials, assuming they're the sole employee, though there are a few exceptions like you already mentioned.

What exactly are those exceptions?

So, a friend of mine was looking into setting up an LLC for an aromatherapy massage business—she’s already got her private certifications squared away. Technically, she can open the LLC, but there's a catch: she isn't actually allowed to practice under it because she didn't pass the state licensing exams at a community college or whatever. Apparently, they won't even let her work solo within her own company...
It looks like she'll have to double-check the rules for certain professions again—specifically whether you can actually operate through an LLC versus a sole proprietorship, depending on where you went to school and what credentials you hold.

But seriously, can they even hire someone who actually has the credentials to do the job? Like, if the owner of an LLC doesn't pass the required certifications... what then? Especially if they’re dead set on doing all the hands-on work themselves?

Yo, has anyone here actually gone through the headache of setting up an LLC this year? Or maybe you just filed all the paperwork down in D.C.? I’ve got a few questions because, honestly, the responses I'm getting from my accountant and the local government offices have been totally useless. It feels like dealing with these public agencies is a joke—they're so slow. Is it better to just go strictly private?

I'm weighing the idea of launching a photography business—specifically, setting up a home office where clients can drop by to discuss wedding bookings or special events. It wouldn't be a full-scale studio, just my own space, and I’d be flying solo without any employees. How does one actually get this off the ground, and what kind of annual overhead am I looking at?

Sure, and I’d also be a full-time student—meaning I wouldn't be working anywhere else... how exactly is that supposed to work?

You’ll have to study part-time—you lose those student benefits and perks once you do.
Check if you can still set up a sole proprietorship; look into the requirements for small businesses—specifically the difference between open and restricted sectors. Honestly, starting and closing a small business is way less of a headache than dealing with a corporation.

The lady I work for is looking to retire, and since her small business is actually doing really well, we’d hate to see her just shut the whole thing down. I’ve been thinking about taking over the business myself. Is it possible to do that even if I don't have a specific degree or formal training in this field? If it is an option, what kind of steps would I need to take to make the transition happen? Thanks a bunch.

Which type of business are we talking about here? It’s crucial to distinguish between a sole proprietorship and an LLC—you should probably look that up online to be sure. If the field requires specific professional licensing, you might need to set up a formal corporation instead. Of course, you really ought to do your homework before jumping in.

What actually needs to be on a company's office sign for an LLC?

Company Name and Street Address

Thanks. So you're saying my Social Security number isn't actually required?