INTRO When to get an LLC?

[msyed0230]

Hey everyone! I'm 26 years old and new to this forum. I am more than halfway through The Millionaire Fastlane and, aside from some strange diatribes, it made me open my eyes to the reality of my situation: I want to create something OF MY OWN that solves people's problem. Of course, I am still figuring out what problem I want to solve. I do want to know, when I eventually create a source of passive income or business system, when exactly during the process do you buy something like an LLC? Is it after you've made some profits? Is there a minimum number of clients you need? I'm new to all this and it's definitely daunting to me. But I want this more than anything. Any help would be greatly appreciated. Looking forward to engaging more with this community!

 

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[TimTheCoder]

DON'T worry about legal entities until you're making substantial revenue. I'm in the UK so not an LLC, but I made the mistake of incorporating before I made significant revenue and it has just been a massive headache that distracts from working on the business. The taxman doesn't care about your $5K/year turnover "business", you can fly under the radar until you start making the same you would be from a job or something around that.

 

[msyed0230]

DON'T worry about legal entities until you're making substantial revenue. I'm in the UK so not an LLC, but I made the mistake of incorporating before I made significant revenue and it has just been a massive headache that distracts from working on the business. The taxman doesn't care about your $5K/year turnover "business", you can fly under the radar until you start making the same you would be from a job or something around that.

That makes things a lot easier! I didn't know if there was an amount you need to make per year before you sign up for an LLC or anything like that. Glad I don't need to worry about that yet. Thanks again for the quick reply!

 

[lowtek]

Welcome aboard. The only thing you need to focus on, for now, is making your first $1.
Once you've done that a few thousand times over, then you can worry about paperwork.

 

[msyed0230]

Welcome aboard. The only thing you need to focus on, for now, is making your first $1.
Once you've done that a few thousand times over, then you can worry about paperwork.

Thanks lowtek!

 

[sknowles]

Welcome aboard. The only thing you need to focus on, for now, is making your first $1.
Once you've done that a few thousand times over, then you can worry about paperwork.

I've found this helpful also. I've been trying to figure out how to source an accountant and lawyer as TMF mentions to get legally setup all the while I haven't cracked $1K in total profit as yet - I only have a regular business license. 'Cart before the horse' I'm thinking.

Thank you & OP for the post.