Setting Up LLC and Contract Employees

.Hack

.Hack

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Dec 10, 2009
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Alright I'm in the works of setting up an LLC by Thursday. I'm going to do it through legalzoom and dunno which one to pick. There are 3 types
Economy$99
Standard$249
Express Gold$359


is there really a different between them? Also is there a certain way I should setup the LLC to hire contract employees or do I just get W-9/1099 for and give it to future employees? Thanks for the help :D

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:bowdown::bowdown::bowdown:
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Short answer is no.

The LLC is the same with each one, but the add ons probably add features, such as Agent service. Which is good since you have to list your corporate address otherwise, which might be your home... So that's worth the $90 - $100 a year to have someone else be your proxy.

The LLC is a form of protection for you. Not really a need for employees. IF you're a sole proprietor people who sue the company are suing you. IF you have a corporate/LLC they have to sue the company. So it's a barrier to get to your money. You might want to talk to an accountant and see what they'd recommend for what you want to do. I actually thought I'd start an LLC, but in CA they aren't as good anymore (Don't ask me why) so I have an C Corp with S status right now. Give me the option to sell shares in the company which is one thing I wanted to do is raise money.

BTW, my accountant used legalzoom to set up the company and it cost me the same and I knew it was done correctly for what I needed.

Rod
 
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rstarky said:
Short answer is no.

The LLC is the same with each one, but the add ons probably add features, such as Agent service. Which is good since you have to list your corporate address otherwise, which might be your home... So that's worth the $90 - $100 a year to have someone else be your proxy.

The LLC is a form of protection for you. Not really a need for employees. IF you're a sole proprietor people who sue the company are suing you. IF you have a corporate/LLC they have to sue the company. So it's a barrier to get to your money. You might want to talk to an accountant and see what they'd recommend for what you want to do. I actually thought I'd start an LLC, but in CA they aren't as good anymore (Don't ask me why) so I have an C Corp with S status right now. Give me the option to sell shares in the company which is one thing I wanted to do is raise money.

BTW, my accountant used legalzoom to set up the company and it cost me the same and I knew it was done correctly for what I needed.

Rod
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Thanks man :bowdown::bowdown::bowdown::bowdown:
 
Why are you paying legalzoom? You can file your articles of organization with your secretary of state for way less with basically the same information.
 
vgeek said:
Why are you paying legalzoom? You can file your articles of organization with your secretary of state for way less with basically the same information.
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I'm actually in the process of setting up an LLC and this is exactly what I'm having my wife do.
 
If you are lazy - use legalzoom.com (its handled, they make it pretty and easy to manage - also realize that you are paying the fee to them + you have to still pay the state incorporation fee and the Fed fee )


Register your business with the FED GOV -



Incorporate in MD or NV - depending on what you want to do - take a look into what your state has to offer.
 
Depending on your schedule/ time frame to get your LLC going it might be worth it to go through legal zoom with the $99 option. Otherwise go through the gov and achieve the same results.
 
thinking of this now ... does anyone know the tax rate differences betweeen LLC and Sole Proprietership?
 
leadsupplier said:
thinking of this now ... does anyone know the tax rate differences betweeen LLC and Sole Proprietership?
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Depends really. I have two LLC's here in PA and they offer no tax advantages. I am a single member so it's taxed the same way a sole proprietorship is and appears the same way it would on my 1040 Forms. From my knowledge, LLC's offer what they are titled (limited liability) and no real tax advantages.
 
leadsupplier said:
thinking of this now ... does anyone know the tax rate differences betweeen LLC and Sole Proprietership?
Click to expand...

From what I understand in a single person LLC all revenue still flows directly through you just like it would in a Sole Proprietorship, but what you gain is protection of your personal assets. So if someone could take legal actions on you based on your business it would be worth wild having one.
 
Do a search for setting up an LLC in your State and just download the form. Its actually very simple and shouldn't take but 15 minutes to complete. (at least that's all it took in my State - Michigan).

Now..if you are looking at getting a fed tax id number (EIN) then you need to file out an SS-4...but now they simplified it...you can do it online here:
Apply for an Employer Identification Number (EIN) Online (this is a good idea as you can provide this number instead of your social security number on various forms you may be required to complete ...such as W9, etc.

Legalzoom is reasonable in regards to what you get but if you are looking to spend as little as possible then you should be able to do it yourself.
 
I don't think employees is a factor over s vs c corp. Really On if you want option to sell stock of company or get investment. I'd try to do 1099s until you had real revenue then bring on W2s. Employees are expensive.
 
I am almost positive there will be no difference hiring contract employees if you remain a sole proprietor vs a LLC. If you are going to do a corp. hire an accountant.

Edit: either way if you are serious about your business... HIRE AN ACCOUNTANT.
 
thanks for the input about taxes dudes ... another question tho

I live in PA, so i would file my LLC here in PA, but now i might move, so if i file my LLC here in PA, and move to a different state, is that ok?
 
leadsupplier said:
thanks for the input about taxes dudes ... another question tho

I live in PA, so i would file my LLC here in PA, but now i might move, so if i file my LLC here in PA, and move to a different state, is that ok?
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Depends where you move to. I started my company in CA at that time if I made my LLC in DE or NV I still would have had to register with CA. CA is reh-tarded that way. So I just formed it in CA. However I live in MN now and MN could caresless where my LLC was formed. They just want my yearly fee.

I used my accountant to set up my business and would recommend that route to anyone. Sure you could save a couple hundrend by driving to your nearest state office to register it yourself. Or mail in your stuff and wait 4-6 weeks. You could use boilerplate articles of incorporation, but I don't have the time or desire to do that. And my business documents refect my business, not some generic company.

The other thing to keep in mind is if you want to open a business checking account you'll need these Stamped articles of incorporation to open that up. So if you take the slow boat method of setting this up, you're waiting that long to get your checking account setup. I had checks I wanted to cash so I wanted my biz setup now now now.
 
its funny u just answered that question .. because the state i would move to is minneapolis .. i'm heading out sunday for work
 
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