Setting up LLC in US (Delaware?)
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- hardhat
Hi guys, I'm looking into setting up a company as an LLC in the US. Any pointers? Im sure a few people on here have done this already. Pitfalls? Things to watch out for etc etc? Costs?
I heard setting up in Delaware is a good idea, for tax purposes.
Any (useful) info welcome :)
- moldero0
I set one up back in '01, for me, it ended up being a hassle more than anything else though. I thought it would be worth it when the average flash site & or flash intro was paying $10k for about 2 weeks work, but It was like doing your taxes 4 times a year, and reading those forms was like reading Chinese, if it wasn't for my girlfriend at the time, i wouldn't have made it past the first page because im pretty retarded when it comes to that stuff.
- instrmntl0
If you do, get an accountant.
- skwiotsmith0
If nothing else, it's worth doing from a liability perspective. If someone sues you, and you own a car or a house that isn't listed as an asset of the company, they can't take it if you lose. I know that's a really simplistic answer, but that is one of the major benefits.
- hardhat0
thanks guys. Yeah, im thinking an accountant might be the best idea. was just wondering if there were any potential *issues* one might sidestep thru your experiences :)
- hardhat0
@knuckleberry have you used legalzoom?
- Knuckleberry0
^
Yeah, I setup an LLC through them a year ago and it was really easy. Just go through their questionnaire and they will let you know the next steps.
- formed0
It depends on what you need. If you are just setting one up, it'll cost you about $50 and you can do it in 30 minutes online (any state website will have the info). Very simple.
If you want more than one person to be the manager, then get a lawyer to set it up (last one I did cost about $750, but I set them up myself every year or so).
LLC's are transparent, so what the LLC makes is what you make, and you'll be taxed accordingly. The LLC itself is not taxed.
You really should spend an hour reading up on this. Playing with laws and taxes isn't something to just wing. If you can't spend that hour, then hire someone.
- sublocked0
I always use http://www.myllc.com/ ...they're knowledgeable and have reasonable fees.
- sublocked0
Also be aware lots of states (like California) will try and tax you ($800/yr in CA for a LLC) if they find out you're "conducting business" within the state.
That means bank account in the state, local offices, etc.
- yurimon0
Pitfall is states have become hip to people conducting business in the state while having an LLC in a cheaper tax heaven state. Best to check against the type of business you are doing to what the state requires. Like new york would require a certificate $100 a year if you are doing a business physically located. and you will still be taxed in the state accordingly.
What is the purpose of you setting this up?
- it would cost more in long run maybe not taxes but fee's and accounting..
Onlyyurimon
- it would cost more in long run maybe not taxes but fee's and accounting..
- hardhat0
hmmm, a true can of worms. i have to set up an LLC for the visa we're trying to get (trying to open something in NYC - so NY based)
sounds like the accountant might be earning his/her keep
- I find LLC in Delaware is best if you transfer property. particularly in series llc https://en.wikipedia…yurimon
- I went through similar, and talked to an accountant.yurimon