I just turned 18 and I would like to protect myself and set up a LLC. I'm not sure what it is or much of what it does. I just know it would be smart to set one up. I have spoke with my parents about it briefly, but they are just as clueless as I am. Can anyone point me in the correct direction? update: I don't sell anything at the moment, just a few web sites (proxies, msrs, etc) but i do have an hostgator affiliate account (selling hosting for hostgator). But nothing is being sold i do "work" for random people making layouts or producing sites.
I went through http://www.mycorporation.com/ They will do everything for you for about $300. But I cant really help you because I obviously dont know much about it and thats why I had someone do it for me.
It depends on what state you are in and what kind of business you're running. An LLC can be good but so can other forms of organization. If you search Google for your state name and LLC or Limited Liability Company (e.g. California LLC) you will probably see your state's official page in the top few and it should provide some useful information.
Way to go. However, shop around online for best rates. There are all the same, same services,so it's smart to compare. Avoid BS fee or useless extra like pens on your LLC name. You will need an EIN also for taxes purpose, usually $50 in the same LLC package, but free with just an easy and quick phone call...
I compared first. But I do agree they all try to sell you some BS extras that you dont really need. All you need is to file with the state and then obtain the EIN. Thats basically it. Think theres only 2 forms involved, but again Im not positive. Just to add, if you do it on your own it will probably be about $150 total. Depends on the state.
wow, thanks for the quick response, i updated my first post for more information. i do live in california... what are the state costs?
I have a very nice link for you to check out. Questions like these are discussed at www.taxforum.us I'm sure you will find the answers to the questions you are posting.
In california the minimum annual tax is $800. In other words even if you make nothing, your LLC must pay this. The first year is special too with regard to when this tax is due--I called their Sacramento office for info on when important deadlines were.
That's a big reason why I dont think opening up an LLC is worth my money. Is there a way to bypass this? Technically, my "business" deals with people world wide, can I open my LLC in a different state? Is it worth my $800 minimum?
here is a great thread on LLC in California.. http://www.taxforum.us/small-business-taxes/t-website-business-what-to-do-208.html If you do not want to incorporate in CA do it in Delaware
You can incorporate in another state, and many people do. Delaware is the traditional best state to incorporate in.
It's actually a cool forum, very informative. I started going there since I decided to look into setting up an LLC, opefully I'll reduce the need for a professional, although it will still be needed, unfortunately...
I don't have a lot of experience with this, but I do have one LLP and a INC under my belt. My state(North Dakota) is pretty easy to do the set up in. Cali sounds like a pain in the behind. Check into a S Corp. Just about any search on google with that term should give you more information. It offers a little bit more protection than a LLC will I believe. If you do decide to incorporate, look into Delaware and Nevada. I know a lot of the silicon valley INCs do.