The LLC Thread

[quikveedb2]

For a while now I've had some interest in starting my own business, I have some ideas, and I think I found a niche in my area that needs filling. I have been reading up on what is involved in starting an LLC, and I figured that the business owners of r3v might be able to help. Who here can speak knowlegably on what is involved in starting a LLC in terms of money, paperwork, legal advise, and so on?

Screw working for the man, I want to start making money for myself!

[Massive Lee]

I want to start making money for myself!

How long are you willing to wait until you start making profits and cashing in?

Most newly open ventures that start taking from the profits right from the beginning will not last long. You want to reinvest as much as you can for the first couple of years. That will result in a stronger business.

BTW what type of business are you looking at?

[mbonder]

It took me an afternoon to start my company. You just have to secure proper insurance for whatever the company may be, sign on to your state's website and register as a business. This was about 5 years ago for me now but if I recall there are a couple fees to secure a name and a license but it was under $300 or so.

I am licensed as a general contractor in NJ, so things will inevitably vary state to state, but its easy enough to look everything up, each state has its own website for these types of things.

[quikveedb2]

How long are you willing to wait until you start making profits and cashing in?

Most newly open ventures that start taking from the profits right from the beginning will not last long. You want to reinvest as much as you can for the first couple of years. That will result in a stronger business.

BTW what type of business are you looking at?

My intent would be to continue to work my full time job & slowly replace the income from that with income from my own business over the course of a few years. The idea is to provide food delivery, as there is only 1 establishment that provides delivery (Pizza Hut) and dozens of places that don't. It'd probably only be busy enough during the winter to be profitable, but after figuring out operating expenses, rates, range, and the like I think it could work.

[NKRoberts]

It took me an afternoon to start my company. You just have to secure proper insurance for whatever the company may be, sign on to your state's website and register as a business. This was about 5 years ago for me now but if I recall there are a couple fees to secure a name and a license but it was under $300 or so.

Pretty much the same when I have done this.

[blunttech]

It took me an afternoon to start my company. You just have to secure proper insurance for whatever the company may be, sign on to your state's website and register as a business. This was about 5 years ago for me now but if I recall there are a couple fees to secure a name and a license but it was under $300 or so.

I am licensed as a general contractor in NJ, so things will inevitably vary state to state, but its easy enough to look everything up, each state has its own website for these types of things.

Same. It was a 1 hour ordeal on the state website. Then banking etc etc. no more than 250-300 tops i recall

[equate975]

I have been working on opening my own business for the past few months, I have a thread somewhere here in OT that needs updating on it.

I just did my LLC paperwork maybe a month ago. Easiest way is to find a business law attorney and have them do the legwork. With the LLC setup from them they should do all the paperwork needed, put in a request for the business name and check to see if it's in use in your state, and set you up with a federal tax id / EIN.

I just walked in, answered a few dozen questions, plopped down $400, and 2 weeks later got all my papers and certs in the mail.

You will need to have the business license and EIN before you can do much of anything else, IE open up a business checking account, etc...

[NigelStu]

It took me a few hours one afternoon to search the name, sign up with MI SOS online and file/fax all the paperwork. Everything the state/gov needed was available on Michigan's 'Small Business' website. I want to say it was ~$80 total. At the end of the day, I had everything I needed - a name, EIN, copy of cert. Next day a trip to my current bank and added in the business account within my lunch hour. Week or so later, the official paperwork from MI came in.


Prior to any of the above, I also did HOURS of research/reading on small biz workings in MI, products, similar businesses, finance, taxes, etc. And wrote up a general business plan (out 11 years). Although most of that time could have been replaced by going to an attorney or similar that specializes in those kinds of thing (but, that's not my style..). Love'em or not, the 'For Dummies" series books are very informative, and the Small Business one is no exception.


By far, the easiest part of my whole ordeal was getting the biz registered.


My plan has me still working my current job for the next 10 years (basically, just after my 20 year anniversary at the co) before I can completely replace my salary AND benefits with the biz.

[pureaudio]

My first side business was started in an afternoon. Went to City Hall and got a business license, they had a little computer right there so you could look up the name and make sure it wasn't taken, paid my $50 for the type of business I was and then went to my personal bank to set up a business account that was linked to all my accounts. Don't make it any harder than it needs to be for a side business.

Since then I have started a full time company with a business partner so it became a little more complicated but if your just starting out by yourself then it can be very easy.

[george graves]

I noticed that a lot of people go with a sole proprietorship. Any reason why?

[Dermeister3]

^thats gotta be a troll post.... i hope. lol

[george graves]

(afraid not - despite popular belief, I do not know everything)

Someone told me that there's good reasons for both, and that it really depends on the business - but I don't know what those factors are.

[Dermeister3]

lol
-well its much easier to create. takes a few papers signings
-it has only 1 owner (you) so you can make your rules, can call the shots quickly and without consulting the whole ownership group.
-It has tax savings over a corporation
- and its cheaper than a partnership and corporation to run.


my business professors would be proud

[Need4Speed1299]

You should look into an "s corporation" also. It has its benefits depending on what your doing.

[MrSlacker]

LLC limits your personal liabilities. Meaning that you as a person cannot be liable for anything related to the business. This way, your personal assets are protected in case shit hits the fan.

S Corp is also very similar to LLC, but also allows you to issue stock (have several owners)