LLC over Sole Proprietorships

[mike21]

I plan on opening a seperate banking account for the business, plus maybe a credit card account for it also. Pretty sure I'd have to get the LLC formed first though before getting the business accounts, but hopefully I get the paperwork started later today through legalzoom

[mike21]

Question regarding the 800 dollar annual tax for LLC. When does that get paid? Is it something that starts after your first year or do I add that to all the other paperwork and permit fees?

[Funtimes]

Question regarding the 800 dollar annual tax for LLC. When does that get paid? Is it something that starts after your first year or do I add that to all the other paperwork and permit fees?

That would definitely want to make me incorporate in January lol.

[PolishMike]

If you do decide on LLC you will have to reapply for an FFL. The LLC is considered the applicant not you.

If you do less than 250k a year the LLC is the best option. If you do more a corp is better.

What you should be doing though is not asking this on a public forum but discussing this with your business attorney or CPA. (Likely both). You are starting a business. You need both.

[Funtimes]

If you do decide on LLC you will have to reapply for an FFL. The LLC is considered the applicant not you.

If you do less than 250k a year the LLC is the best option. If you do more a corp is better.

What you should be doing though is not asking this on a public forum but discussing this with your business attorney or CPA. (Likely both). You are starting a business. You need both.

I haven't found the need to see a business attorney yet, but a CPA I can agree with. It helps to get a good consultation up front so that you know what you should be documenting, how to document, etc. that way, when you take them your records for taxes it's all in a format they want.

Many of the CPA's I know appreciate stuff like quickbooks, when done properly. I would also have to say that the books from NOLO on these types of topics are pretty damn good. They are a primer for anyone - and a resource that should be utilized.

[mike21]

I'll talk to my tax person once I get things rolling to see about all the business documentation things. I did taxes for a few years but never really got deep into business taxes so I kind of have an idea of most of it. I'll sit down and speak with her for a deeper discussion on how she wants me to log things. Appreciate the help guys.

[mike21]

Got my paperwork back from Legalzoom on Friday. LLC officially approved by the state. Now I'm heading to publish the DBA tomorrow morning, but had a question. Do I need to wait til it is published before getting the EIN and proceeding with the rest of the permits/licensing such as the business license and other forms?

[Funtimes]

Got my paperwork back from Legalzoom on Friday. LLC officially approved by the state. Now I'm heading to publish the DBA tomorrow morning, but had a question. Do I need to wait til it is published before getting the EIN and proceeding with the rest of the permits/licensing such as the business license and other forms?

I have to call my county to see if they do the same thing (publishing); I've tried looking to see what dictates it, but I don't see it anywhere on their page. Not sure how long I have to run it for and how many times. I have a few names that I wanted to reserve.

I almost just thought about getting 3-4 different licenses with those names on it; I don't pay a fee for the business license, so i'm not sure if it would matter.

[mkasda]

Stick to a sole proprietorship and buy a simple liability insurance policy. You're really wasting your money on a separate entity.

[mike21]

I have to call my county to see if they do the same thing (publishing); I've tried looking to see what dictates it, but I don't see it anywhere on their page. Not sure how long I have to run it for and how many times. I have a few names that I wanted to reserve.

I almost just thought about getting 3-4 different licenses with those names on it; I don't pay a fee for the business license, so i'm not sure if it would matter.

I needed a certificate of status for the LLC before they let me publish. Took a little over a week to get it from the state. Finally got it yesterday and went straight to get it published. Had a list of publishings I could list it under and chose one. Has to run once a week for 4 straight weeks. Im moving on to the EIN, temp business license, and finally apply for the FFL this coming week.

[Funtimes]

I needed a certificate of status for the LLC before they let me publish. Took a little over a week to get it from the state. Finally got it yesterday and went straight to get it published. Had a list of publishings I could list it under and chose one. Has to run once a week for 4 straight weeks. Im moving on to the EIN, temp business license, and finally apply for the FFL this coming week.

Currently, I have my business license in hand under a different name ; so I'm not sure if I need to even worry about publishing. The business is supposed to include my name or file a DBA - but the county didn't make me do anything. Not sure if it will really matter in the future. I honestly don't think it will, it's just to provide notice to people and have a legal way to track you.

[eltee]

If the business is in the FFL's name, i.e., John Smith and he later decides to establish an LLC but not change the name, does this require re-licensing? It is simply John Smith (not John Smith Co., John Smith Guns, etc.).

[ugimports]

If the business is in the FFL's name, i.e., John Smith and he later decides to establish an LLC but not change the name, does this require re-licensing? It is simply John Smith (not John Smith Co., John Smith Guns, etc.).

yes new entity = new ffl if you're trying trying to put the FFL in that name.

[ronlglock]

Sub chapter (S) corporation and LLC's allow you to keep your business and personal life separate.

Its basically a business insurance policy to protect you and your personal assets and credit worthiness.

THIS. I have an LLC for this very reason - keep my personal a business assets separate.

[stitchnicklas]

You can also purchase an insurance policy-business liability, umbrella policy, etc...t.

my policy was just under $900
1 million per incident and 2 million aggregate
300 something to start and 57 bucks a month