Starting an LLC: Where to begin?

Raymond Peterson81 said:What’s the minimum capital requirement when setting up an LLC?

Do I need to have the full $25,000 $0.00 sitting in the bank account right at the start, or is there some way to structure it differently?

Also, what does the actual cost look like to get everything running—meaning the initial $25,000 $0.00 plus the legal fees, filing costs, accountants, notary services, and all that paperwork?

You’re looking at roughly $23,000-$8333. Out of that, you’ll have $20,000 sitting in the business bank account, which essentially serves as your starting balance. In theory, that isn't really an "expense" since you aren't paying anyone else—you're just moving money into your own company's pocket.

If you work with a smart notary who knows how to properly organize the formation documents for an LLC, you might actually be able to recoup those $1667 extra startup costs from that initial $6667 balance in the company account. But, you know, at some point during the process, you definitely need to have the full $8333 on hand.

How would you handle translating some of these business terms into English?

Things like sole proprietorship, LLC, Inc., CEO... and maybe I'll think of a few more 🙂

LLC
we were tearing our hair out trying to figure out the English term for Oko Inc., and even the professor was stumped at the end
"CEO" and "sole proprietorship" are pretty broad terms if you think about it

look, you'll probably care about sales tax. that's VAT

d.d. stands for a public corporation—essentially an Inc. or a public limited company

Take a look at this—there’s quite a bit of info here: http://en.wikipedia.org/wiki/Types_of_companies

It would probably be best if we went with General Electric

or simply put—the company

The entity is definitely an Inc. over in the States.
The real question here is—which version of English are you actually looking for? American or British?
Though, honestly, there's plenty of info on Wikipedia if you bother to look...

From what I can gather, the dividend yield is tied to an LLC

...right?

Check out this link!

A corporation is basically a PLC—that's what the paperwork says, and from everything I know, that's how it works...
At least in the UK...

LLC

How many employees do I actually need to register to run an LLC? And is it even legal for me to be the only person on the payroll?

It can just be the owner, doesn't have to be anyone else at all...

What other requirements are we talking about here—like turnover and stuff? Where can I actually find all this info online?

.keskin. So why on earth would you go the LLC route specifically?
The overhead is going to hit you way harder than if you just started as a sole proprietorship, though the upside is you’re immediately plugged into the IRS system for tax credits and stuff.
I don't even know what kind of business you're looking to launch, but if you're planning on heavy upfront investments—you know, buying equipment, machinery, or fleet vehicles to get the job done—then honestly, why wouldn't you just stick with a sole proprietorship?
What kind of degree or training are we talking about here??
And what exactly is the game plan for the actual work?
Look, you can totally run an LLC while being a W-2 employee at some other company, and you could do the exact same thing with a sole proprietorship, so that's not really a deciding factor.

This whole topic is a bit of a rabbit hole, honestly; there are costs hiding everywhere, and you really need to have a solid grasp on both accounting and the legal side of things before you decide what you actually want to deal with.
Anyway, if you've got more questions, just throw them my way, I'm happy to help out.

Judging by your questions, you’re pretty green when it comes to the professional world—let alone actually running a business. I'll try to keep my answers short since these vague, broad questions would take forever to fully unpack—but if you have more, just try to be more specific next time.
1. What are the minimum monthly contributions for an LLC (if there even are any)?
-I think you're asking about overhead. If you haven't launched yet, you won't have any. Once you're up and running, though, costs depend entirely on what you're doing. Some basics include: payroll (which includes you if you're working for yourself—and if you don't have employees, then you aren't really "running a business," you're just freelancing...) wages, taxes, and various payroll withholdings, plus things like holiday bonuses or benefits if you have a team.
Then there's office space—rent or a mortgage—plus phone, internet, electricity, and other utilities (see how it varies? An office job barely uses power, but a manufacturing plant? That adds up fast).
Vehicle expenses too (if you need them for work)—depreciation, gas, maintenance.
-Accounting (seriously, don't cheap out here—a bad accountant will ruin your life).
-To keep it brief, there's more, but...

2. When an LLC is formed, how is the business activity determined, how many can be listed, what does it cost, and what's the process for adding more later?


-You register the activities you want to perform right when you file your formation papers, following the official list of industries provided by the state. You pay for each one, so think ahead about what you want to do now and what might make sense down the road. You could technically register to sell weapons or pharmaceuticals, but you'd need special permits for those.
-Updating your registration isn't free—honestly, it costs almost as much as the initial setup (minus the capital contribution, obviously). Even changing your business address isn't cheap; just the notary fee is around $1000.

3. How does setting up a second venture under an existing LLC work? For example, if an LLC already has a restaurant license and decides to open a cafe, are there any advantages over opening a "pure" cafe (like a sole proprietorship)?
-I'm not quite following "second ventures under an LLC"—if you have a restaurant license and open a cafe, you still have to get all the same permits, health inspections, and meet the same technical requirements as a sole proprietor (those are all extra costs too). The main difference is whether you operate as an LLC (subject to corporate income tax) or a sole proprietorship (subject to individual income tax). One big thing to remember: as a sole proprietor, you're personally liable with all your own assets, whereas with an LLC, you aren't. There are also differences in how you handle the IRS and some other small details.

Mark Sullivan62 said:Oh, really? So something actually changed in the regulations?

Because I could have sworn that previously, the initial capital could consist of cash, physical assets, or various legal rights.

Yeah, things changed recently—about five years back.😁

Arthur Mendoza5 said:.keskin. So why on earth would you go the LLC route specifically?
The overhead is going to hit you way harder than if you just started as a sole proprietorship, though the upside is you’re immediately plugged into the IRS system for tax credits and stuff.
I don't even know what kind of business you're looking to launch, but if you're planning on heavy upfront investments—you know, buying equipment, machinery, or fleet vehicles to get the job done—then honestly, why wouldn't you just stick with a sole proprietorship?
What kind of degree or training are we talking about here??
And what exactly is the game plan for the actual work?
Look, you can totally run an LLC while being a W-2 employee at some other company, and you could do the exact same thing with a sole proprietorship, so that's not really a deciding factor.

This whole topic is a bit of a rabbit hole, honestly; there are costs hiding everywhere, and you really need to have a solid grasp on both accounting and the legal side of things before you decide what you actually want to deal with.
Anyway, if you've got more questions, just throw them my way, I'm happy to help out.

1. You don't have to deal with the IRS right away; there’s no functional difference from a sole proprietorship until your annual revenue hits $28. Until then, you stay off their radar.

2. True, but with an LLC, you aren't forced to pay self-employment taxes on yourself, whereas with a sole proprietorship, those contributions are mandatory regardless of whether you have another job or not. Running both simultaneously usually doesn't make much sense.

banderas, you didn't even finish quoting me, so honestly, your whole point is pretty much moot
I mean, sure, look, it doesn't have to be registered with the IRS if they aren't hitting that $28333 threshold, but if this person is actually planning on opening a legitimate business with real overhead and major capital investments, then being in the tax system is a total no-brainer. It’s just better strategy.
You want to know why??

I’ve seen enough "wellness gurus" and boutique spa owners to know that most of them are just selling overpriced relaxation to people who are too tired to realize they're being ripped off. You go in expecting a life-changing experience, and you leave feeling like you just paid a premium to have someone press on your shoulders for forty minutes. It's a racket. If you want actual relief, stop looking for the aesthetic lighting and start looking for the person who actually knows how muscles work. Efficiency over atmosphere, every single time. kaže:
Banderas, you didn't even finish quoting me, so your entire take is completely off base.
Of course. If you aren't hitting those revenue thresholds, you don't have to deal with the IRS. Simple as that. $28333If he’s planning to launch a business that requires heavy upfront capital—we're talking serious investment—then staying out of the IRS tax net is a massive mistake. He needs to be registered for sales tax from day one. Otherwise, he's just leaving money on the table.
Ever wonder why?

We’ve been over this a dozen times already, so let me make it simple: there is no universal rule here. It all comes down to who is paying the bills. If you’re dealing strictly with individual consumers, stop asking me about registering for sales tax. Seriously. The whole point of running a private business is to turn a profit. You make money when your revenue outpaces your expenses. In plain English, that means your collected sales tax needs to outweigh your input credits—but for a regular customer, those extra percentages matter. They aren't looking at your tax write-offs; they’re just looking at the price tag. A guy isn't going to choose your shop over the local pub if he feels like he's being nickel-and-dimed by the government on every transaction. He'd rather take that extra cash and spend it on a cold beer. $3.25 The price is one thing, but then there’s the hidden math—that extra layer that isn't included in the sticker price because the IRS always gets their cut first. It’s like looking at a menu where the prices look reasonable until you realize the final bill is going to hit you with a heavy tax surcharge. Same concept, different math. $4.00 What’s the tax-inclusive price? They don't give a damn whether the owner is registered with the IRS or not—they just want to pay less.
If you’re dealing with clients who are already in the tax system, you might as well register from day one. It makes the whole thing tax-neutral. Why complicate your life?