LLC questions

G

goodgoing

Just started thinking about it and I am collecting information. A few questions for those with experience in forming and operating an LLC

1 - Can I be the only member?
2 - Is it required to maintain an office in the state of incorporation? Best state with lower expenses?
3 - Is an LLC taxed or just its members?
4 - Is it easy to open a bank account?
5- Is there anything else that you think it is important to know?

I'm also ordering Limited Liability Companies For Dummies.

Thanks in advance
 
Quote from goodgoing:

Just started thinking about it and I am collecting information. A few questions for those with experience in forming and operating an LLC

1 - Can I be the only member? YES, you can have a single member LLC.

2 - Is it required to maintain an office in the state of incorporation? Best state with lower expenses? I'm not sure, but I don't think so. I know LLC's in Delaware with no legal address there.

3 - Is an LLC taxed or just its members? The income filters to the members of the LLC. The LLC is not taxed.

4 - Is it easy to open a bank account? Yes, you need your IRS Tax ID, LLC agreements, and what ever else the bank asks for. I used HSBC because they have free business checking with no minimums.

5- Is there anything else that you think it is important to know? You will have to pay a yearly fee to the state you're set up in per member. It ranges from $200 - $800/ per state/per-person. You will also have to file a tax form every year for the LLC that says how income and expenses were distributed to it's members, and give a K1 to each member. So, your tax bills will be a lot higher.

You could use an online firm like Legalzoom.com. They will do everything for you for around $250 and will take around 3 weeks. You could do it yourself, you will have to make a few phone calls and go online to the IRS, and maybe visit your county clerk.

I'm also ordering Limited Liability Companies For Dummies.

Thanks in advance
More...
 
to the best of my knowledge (ie not a cpa)

1. yes
2. not sure, but pretty sure you'd be taxed in your home state regardless as that is where the ops are
3. since you'd be the only member all taxes flow to you
4 yes. you'll need a tax id that can be obtained fro the irs site, you'll also file a dba which is pretty simple.
 
Quote from goodgoing:

Just started thinking about it and I am collecting information. A few questions for those with experience in forming and operating an LLC

1 - Can I be the only member?

In some states, yes. Mine is in Nevada and you can be the only member

2 - Is it required to maintain an office in the state of incorporation? Best state with lower expenses?

You must have an address in the state and I believe NV is the easiest and cheapest

3 - Is an LLC taxed or just its members?

In most cases an LLC acts like an S-Corp where income and losses are passed through to the members
4 - Is it easy to open a bank account?

All you need is the Federal EIN and the document that shows the registered members and managers

5- Is there anything else that you think it is important to know?

I'm also ordering Limited Liability Companies For Dummies.

Thanks in advance
More...
 
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