Where/How to start an LLC?

[G-man422]

Hello fastlaners,

I would like to strt an LLC or an S Corp. Where is the best place to do this? How much should I expect to pay to start one? Also any advice would be appreciated.

Thank you!

PS: I've checked out the LegalZoom website. Is it a good choice?

 

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[sharky]

Definitely do it in Delaware. A good place to start with is called The Company Corporation, they will do everything for you and their prices are very reasonable (mine was $289) with all the filings and proper documentation. you can do it on your own for less, but if you are unfamiliar with it go with these guys or someone else you trust.

 

[911Carrera]

It depends on some things. Your home state will usually require that you register your business as a foreign entity if you incoporate in a business friendly state like Delaware or Nevada and have employees or physical location in your home state.
Even if you are a single member LLC/corp running an Internet business, your home state will want you to register as a foreign entity because you will be running your business from your home state. Pretty freaking lame right? You can get away without registering as foreign but comes tax season, you will have issues with the IRS/states.

 

[G-man422]

I really appreciate it Sharky and 911. Thank you.

 

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[CPisHere]

I recommend LegalZoom.com and filing in your state of residence (unless your state has aweful corporate protection). No real reason to use Delaware for an LLC when 90% of the states now have laws just as corporate friendly as them.

S Corps are generally a bad decision. It should be LLC vs Incorporate decision.

 

[royemunson]

You can file as an LLC and decide to check the box to be taxed as an S corporation to sidestep the self employment taxes you will pay b/c as a single member LLC you are a disregarded entity in terms of tax liability and you file on your Schedule C - you do however retain the benefits an LLC offers.

But with an S corporation there are limitations and rules - one being that you have to take a reasonable salary.

Doing so in a state like Delaware or Nevada can provide benefit but it depends on the type of organization you are going to build.

Because the states you do business in have a fun little thing called nexus and no matter what you will typically have to register to do business in those states based on these rules and still pay taxes, register, etc...

Legal zoom is good - my parents formed their LLC with them and had a friend/attorney review. It's not that big a deal and then you'll have to get your EIN and all that through the IRS website. You can get all this done in one spot and it's worth the headaches.

Joe

 

[G-man422]

Thank you Cparsons and royemunson.

 

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[^eagle^]

There are cheaper options other than legal zoom. Also you have to consider whether you are going to hang a shingle and sell products directly in the state you reside. New Mexico actually is the best place to register an LLC because of their lenient requirements. But if you register out of state and intend on selling as a B&m Business you have to register a one time fee in that state.

Example: You Register an LLC in New mexico and then set up a shop in New york you have to register your LLC t form New mexico in the stae of New york. Additional fees And all that.



Shop around. I got mine at Sunshine biz.org for $155. But thats for florida.

A way to bypass the Single entity problem is to give 1`% of your business to someone you can trust. That way it becomes a partnership. And the veil can't be pierced as easily.

 

[CPisHere]

Legalzoom is definitely not the cheapest. They are a company I trust though, and they make it very easy.

You don't need any company to do it though, you can do it yourself. However, for a first timer, I recommend a service that will ensure you do it right.

 

[easystreet]

Go to your states Secretary of State homepage and download the articles of organization. You can even google: "(your state) LLC articles of organization". Fill that in and follow the directions for mailing it in. The state will charge about $100, and most accept personal checks.

If you file in a state like Nevada or Delaware, you are going to have to pay again to register in your home state, and your home state will require you to pay income taxes even if the state you're filed in does not. The main advantage to filing in those "corporate friendly" states is anonymity, but you are also inviting auditors. Remember, if your business takes off, you can always move it to a corporate friendly state with the help of your accountants and lawyers. Little companies aren't worth the hassle.

If you can't figure out how to start an LLC without legal zoom you will be hard pressed to run a successful business.

 

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[Kak]

Go to your secretary of states website. You should be able to read all about it.

 

[PopEmersen]

I created mine in October, I'm in GA so I went to secretary of states website. Filled out everything and it only took an hour and about 118 bucks.