Author Topic: Forming an LLC  (Read 7786 times)

Offline good sam

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Re: Forming an LLC
« Reply #20 on: July 24, 2017, 04:44:36 AM »
What are options for creating an LLC but not having my personal name on it in the beginning (besides having a family members name instead)?

Thanks
In many states, the actual filing doesn't require the name of an individual.

You'll of course need to supply a name and ssn to obtain a tax ID number.
If you don't care why would you comment?
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Offline YitzyS

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Re: Forming an LLC
« Reply #21 on: July 24, 2017, 08:28:20 AM »
Does a single-person LLC allow you to "leave money in the LLC" and only pay taxes when it's withdrawn?

Offline aygart

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Re: Forming an LLC
« Reply #22 on: July 24, 2017, 08:42:31 AM »
Does a single-person LLC allow you to "leave money in the LLC" and only pay taxes when it's withdrawn?
I think not
Feelings don't care about your facts

Offline ExGingi

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Re: Forming an LLC
« Reply #23 on: July 24, 2017, 09:37:54 AM »
Does a single-person LLC allow you to "leave money in the LLC" and only pay taxes when it's withdrawn?
IINM it is considered a disregarded entity for tax purposes.
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Offline henche

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Re: Forming an LLC
« Reply #24 on: July 24, 2017, 09:48:42 AM »
A single member LLC can be either a disregarded entity (which means you just put the income on your own return), or a corporation (which means it pays corporate taxes, and then you also pay taxes again on dividend distributions).

You elect which one you want.  If you don't elect, it will be a disregarded entity.

Offline aygart

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Re: Forming an LLC
« Reply #25 on: July 24, 2017, 09:54:55 AM »
A single member LLC can be either a disregarded entity (which means you just put the income on your own return), or a corporation (which means it pays corporate taxes, and then you also pay taxes again on dividend distributions).

You elect which one you want.  If you don't elect, it will be a disregarded entity.
I forgot that technically an s-corp can be an LLC with an S corp election
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Offline henche

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Re: Forming an LLC
« Reply #26 on: July 24, 2017, 09:59:33 AM »
I forgot that technically an s-corp can be an LLC with an S corp election

Yes, it can be.  I neglected to mention.

It can also be a REIT or a RIC.


Offline Bh101

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Re: Forming an LLC
« Reply #27 on: July 24, 2017, 11:03:07 AM »
does anyone else feel that these questions should be asked to your accountant vs being answered by a bunch of unqualified people?

Offline David Smith

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Re: Forming an LLC
« Reply #28 on: July 24, 2017, 11:07:17 AM »
does anyone else feel that these questions should be asked to your accountant vs being answered by a bunch of unqualified people?
When you say a bunch of unqualified people, are you referring to the CPAs and tax attorneys responding?
Who do you think you are fooling? You think you are going to pull a quick one on your Creator? Good luck with that.
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Offline Bh101

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Re: Forming an LLC
« Reply #29 on: July 24, 2017, 11:09:32 AM »
When you say a bunch of unqualified people, are you referring to the CPAs and tax attorneys responding?
from some of the answers i highly doubt thats whos responding. although i could be wrong.

Offline YitzyS

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Re: Forming an LLC
« Reply #30 on: July 24, 2017, 11:21:51 AM »
I am very gratefull to all those answering - both the qualified and the unqualified people. I obviously am only trying to get an idea, and will contact a professional before going ahead with anything serious. ("but your honor, how can you possibly jail me for fraud? There is a thread on DDF that says this specifically!")

Offline good sam

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Re: Forming an LLC
« Reply #31 on: July 24, 2017, 11:28:27 AM »
does anyone else feel that these questions should be asked to your accountant vs being answered by a bunch of unqualified people?
Lol. This is usually my sentiment about questions like these, but in this case, there are actually accountants and attorneys answering.
If you don't care why would you comment?
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Offline aygart

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Re: Forming an LLC
« Reply #32 on: July 24, 2017, 11:29:28 AM »
from some of the answers i highly doubt thats whos responding. although i could be wrong.
I am obviously not a tax professional, but others posting here are.
Feelings don't care about your facts

Offline henche

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Re: Forming an LLC
« Reply #33 on: July 24, 2017, 11:51:59 AM »
Just to make this explicit, you have two separate questions:

First, should you be operating your business through a legal entity? The main benefit of this is to limit liability.

Second, is there any tax structure you would prefer than to simply include the income in your return.  If so, you might need an entity, but having an entity does not mean you need to do anything more than include the income on your return, depending on how you set it up.

Offline aygart

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Re: Forming an LLC
« Reply #34 on: July 24, 2017, 11:59:01 AM »
does anyone else feel that these questions should be asked to your accountant vs being answered by a bunch of unqualified people?
It is always worth hearing from people who have had experience from a non-professional POV to get some ideas of what questions to ask. A professional is only worth as much as the information given them. By getting a basic layman's understanding before speaking with the professional it can make that conversation so much more productive. Obviously it would be ridiculous to take action based on forum recommendations, EVEN from the professionals since it is not personalized to your speciific needs.

I prefer when my clients understand energy pricing before speaking with me. They are the ones who appreciate my expertise the most and are more capable of using more complex products which are sometimes better for them.
Feelings don't care about your facts

Offline ExGingi

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Re: Forming an LLC
« Reply #35 on: July 24, 2017, 12:06:55 PM »
Just to make this explicit, you have two separate questions:

First, should you be operating your business through a legal entity? The main benefit of this is to limit liability.

Second, is there any tax structure you would prefer than to simply include the income in your return.  If so, you might need an entity, but having an entity does not mean you need to do anything more than include the income on your return, depending on how you set it up.
I would add that there's a third question which should have been asked, but might have been ignored.

OP gave two choices: Sole Proprietorship vs LLC. However, those are not the only two business structures available. There are various tax, and non tax, reasons to choose one entity over another. Jurisdiction also matters.
I've been waiting over 5 years with bated breath for someone to say that!
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Offline ash

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Re: Forming an LLC
« Reply #36 on: July 24, 2017, 12:59:27 PM »
whats about forming a LLC out of the state that you work in for example montana (alot cheaper to operate)? would that be ok if your working in NYC ?


if you have a business that has a lot of expenses and you are only generating a small income ?

Offline Bh101

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Re: Forming an LLC
« Reply #37 on: July 24, 2017, 01:05:02 PM »
no

Offline ExGingi

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Re: Forming an LLC
« Reply #38 on: July 24, 2017, 01:14:54 PM »
whats about forming a LLC out of the state that you work in for example montana (alot cheaper to operate)? would that be ok if your working in NYC ?


if you have a business that has a lot of expenses and you are only generating a small income ?
Probably wouldn't make any sense.

You might still have to file and pay in the state where the business is operating, and you'd probably have an expense of paying an agent in that state. Forming an entity in a different jurisdiction is usually done for reasons OTHER than tax (asset protection, business friendly jurisdiction, etc. etc.).
I've been waiting over 5 years with bated breath for someone to say that!
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Offline ash

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Re: Forming an LLC
« Reply #39 on: July 24, 2017, 01:17:40 PM »
its very cheap under $200 for the first year and the following years less then that and it includes the filing and a address in that state
just google montana corporations .......