Questions regarding setting up and operating Limited Liability Companies
16
votes
6answers
3k views
How to choose between Cash and Accrual Accounting
I just started my first business. I’m debating on whether to go with cash-basis accounting or accrual accounting. From what I’ve read it seems that cash-basis is the easier method, but accrual is more ...
14
votes
3answers
731 views
Overbudget and unable to complete software contract. What can I do and what can I expect to happen?
This might be a slightly long story, but I really would appreciate any help you can give me here. I am a young entrepreneur and currently run a struggling website development / software company.
...
12
votes
5answers
570 views
Sole Proprietorship vs LLC
From what I read there are two basic types of business recommended for a single person business (in the US):
Sole Proprietorship
LLC
My wife is looking to start a business for blogging/selling ...
10
votes
3answers
6k views
Simple Overview of LLC Pass Through Taxation
I understand that an LLC filed as a Partnership to use Pass Through taxation is not required to pay quarterly taxes. In this scenario, the owners pay taxes on the dividends received.
But how does ...
9
votes
3answers
8k views
How many times a year do LLC's have to file taxes?
If I start an LLC where I am the only owner, do I only have to file taxes once a year (without getting penalties of course)?
9
votes
4answers
1k views
Finding a good lawyer / accountant for my startup
I have been told that deciding how and when to incorporate my startup is best answered by speaking to an accountant or lawyer about my individual needs. Besides relying on referrals, how can I ...
8
votes
4answers
3k views
Are there any disadvantages in registering for an EIN for a single-member LLC?
I have an LLC where I am the sole member. I need to open a bank account and want to use an EIN instead of my SSN. I know the registration for an EIN is very quick and free, but are there any ...
7
votes
4answers
363 views
Creating a Business for Side Programming
I'm an Android developer that has made money over some of the apps I've created in the past year. I have no corporate filing so I am currently considered a sole proprietor in the state of Florida. I ...
7
votes
2answers
203 views
Has anyone sold a “fork” version of their software?
I created a SaaS that became quite popular over the weekend. I had a steady stream of users sign up and many are actually still using it (lots of folks who signed up out of curiosity).
Anyway, I ...
6
votes
7answers
597 views
Prospective partner refuses to sign no-compete as person
After much search, it seemed that I have found a suitable partner for my IP based startup. Things seemed to have progressed well until I asked him to sign a no-compete agreement as part of the deal. ...
6
votes
6answers
5k views
Delaware LLC, one person, internet-only business; Do I need to register as a foreign corporation?
This seems like a straightforward, common question that would not require a lawyer to answer, but I'm having a lot of trouble finding an answer to the question in the title.
I would like to form an ...
6
votes
2answers
1k views
How does a business owner take money out of their business
Let's say I own a business selling widgets on the web. I'm incorporated, most likely an LLC. The business is doing really well and there is a lot of cash flow. Since I'm separated from the business by ...
6
votes
3answers
6k views
As a member of an LLC, how do I pay myself a salary? 1099 or W-2?
If I am a member of my LLC can I be paid as an employee and be on a payroll? Is this different in each state or is it federally regulated? If our LLC is to have employees do we need a different number ...
6
votes
1answer
626 views
How To Open US Business Bank Account For LLC Without Going to US
Recently opened a LLC in USA, I am non-US citizen, do not live in USA, we are running an ecommerce business, now we need to open a business bank account for this LLC without physically walking into ...
6
votes
1answer
890 views
C Corp vs LLC Taxes
I'm trying to figure out the various taxes taken out for a C Corp vs LLC. Single-member/ shareholder. (C Corp has more deductions.)
C Corp: (1) Tax on profit (after deductions), (2) Payroll tax ...
6
votes
3answers
4k views
How do you actually setup a vesting agreement for co-founders w/out breaking the budget?
I'm based in Hong Kong. I've read through a lot of information about share vesting for co-founders and realized that is definitely the solution I want. I'm now trying to figure out how to actually go ...
6
votes
3answers
669 views
Formed Single Member LLC. What are pros and cons of filing form 8832 to be taxed as a Corporation?
I recently formed an LLC for my software side business. The income generated is between 5-10k a year. I have also filed and receivied a Federal EIN.
I think I intend to take money out or "pay myself" ...
5
votes
9answers
2k views
Are LLC and “S Corporation” the same thing? What are the differences?
From what I have read, both LLCs and S-Corps give you the benefits of a Corporation for legal purposes while avoiding double taxation.
However, I can't determine what the difference between the two ...
5
votes
3answers
2k views
Should we convert our LLC to a C-Corp?
We've reached a point where we need either hard capital or strategic hire capital and as an LLC it seems like it is much harder to grant capital (either immediately or in a vesting process).
Also, ...
5
votes
3answers
377 views
should I form a 1-man LLC?
I am a student and do freelance programming work to pay the bills until I graduate and maybe even after. I live in Kansas but I do freelance work across state lines (in Missouri currently)
Is it a ...
5
votes
3answers
348 views
Is an LLC right for me?
I have a general idea of all of the business structures. I'm living with parents, with a toyota camry with 200k+ miles on it. I plan on launching a web service where people pay less than $100/month ...
5
votes
2answers
632 views
Cloud-based accounting software [closed]
I am in the process of starting a business. The nature of the business is Photography (weddings, etc.). What would be a good accounting software solution (preferably cloud-based or SaaS)?
5
votes
3answers
3k views
Why don't investors like to invest in an LLC?
I have read that if you are raising money, that an LLC is a dispreferred vehicle for your company.
Why do investors not like to invest in an LLC?
5
votes
4answers
918 views
How to register LLC in USA or LTD in UK and bank account, for foreigner?
I am from Serbia, Europe (Not Europe Union country). I develop Android apps and would like to sell them on Android market. I can not register for Google merchant account from Serbia so I need business ...
5
votes
2answers
948 views
Should I form my LLC in NY or NJ for a mobile app company?
Two friends and myself are developing a mobile app that we will sell on the Apple app store and the Android marketplace. We have decided to form an LLC to sell the application. Two of us are located ...
5
votes
2answers
3k views
Rental Property LLC tax deduction advice
If I form an LLC and my new company buys a duplex rental unit, my understanding is the 'company' taxes will be a pass-through to my personal 1040 income tax forms, with the appropriate forms.
I ...
5
votes
3answers
1k views
What questions should I ask when interviewing a potential accountant?
We formed our LLC a few months back. We're developing a software product and we're planning to launch a very small private beta test in about a month. I'll be doing our bookkeeping, but I need help ...
5
votes
3answers
383 views
Selling assets of my company, can I treat as capital gains tax at 15%?
I've been approached by people wanting to buy the assets (not stock) of my company (single member llc) which consist primarily of
my mobile app
its source code
the server code that supports the app ...
4
votes
5answers
2k views
How do you split a company three ways without repeating decimals?
My co-founders and I have agreed on a completely even split equity of 1/3 each. In our operating agreement,however, we need to put down the percentage ownership stake for each of us, and aren't ...
4
votes
2answers
1k views
Claiming Laptop as LLC expense
I don't have a separate bank account for my LLC (I am sole owner). I am planning to buy a new laptop. How do I claim it as an LLC expense, come tax time?
Related questions:
What are pros/cons of ...
4
votes
2answers
283 views
LLC questions for a one-man software shop
I have a few applications that I am about to release on the App Store. I have not yet received any revenue from these apps. I'm also not planning on making a lot of money from them. I'm considering ...
4
votes
5answers
2k views
Can I easily/affordably incorporate in another state without claiming residence there?
I work primarily in internet marketing, recently several states have instituted internet tax laws, causing several companies to reconsider working with my firm due to the fact that if they worked with ...
4
votes
3answers
988 views
Is there a way to legally hide ownership of a LLC from the general public?
Due to various reasons (career related, privacy etc) I would like to hide the fact that I am the owner of the LLC from the general public and from anyone else trying to figure out the owners of the ...
4
votes
7answers
730 views
I have an LLC, what's next?
I got the docs for my LLC and EIN, is there anything I should fill out or must do after setting up the LLC? The LLC is for a internet startup, offering a service free or charge, but might have ads.
4
votes
5answers
2k views
When operating an LLC, how do you pay company expenses?
When operating an LLC, how do you handle company expenses? Do you pay for them yourself and deduct them on your taxes (as it is a pass through tax entity), or do you pay for them from the company ...
4
votes
6answers
1k views
forming single member LLC for internet website
I live in Texas, and want to form a single member LLC (not decided which state).
If I have paid visitors from all over the world, do I need to register foreign LLC in other states even though I am a ...
4
votes
3answers
3k views
How can you keep money in an LLC account when it isn't taxed directly?
I know LLCs can be pass-through tax entities, so you don't pay tax at the LLC level but only on the income of each member. Is the money only taxed when used to pay members? Can you keep money in the ...
4
votes
1answer
5k views
How To Transfer Money Between Personal & LLC Bank Accounts
I'm starting a very small business out of my home in Texas. I've formed the LLC and opened a bank account for it.
How should I handle putting my own money into the business account so I can avoid ...
4
votes
3answers
173 views
Are EINs required for LLCs?
My business partner lives out of state (in WI), but our business is going to be an LLC in WA, where I live. We don't have any paid employees just yet (shoot, we aren't even getting paid yet!), though ...
4
votes
1answer
568 views
LLC and address
I know this has been asked million times but i am still not sure. I bought a PO box number recently.
I have looked at Mailbox Forwarding and EarthMail and others but none of them have addresses in ...
4
votes
2answers
850 views
Company formation for a non-resident – Delaware LLC and London LTD
Got a few questions about forming a single member LLC in Delaware or LTD in London. I’m looking into forming a company abroad for an easier way to do business and billing (+ its cheaper) and am ...
4
votes
4answers
459 views
Should I incorporate or do an LLC?
I am building a startup. Right now I am thinking of having a company that is an umbrella around the different attempts I make. Which would you suggest? Should I incorporate or do an LLC? What are the ...
4
votes
1answer
326 views
What questions should we be sure to answer in an operating agreement?
I'm at the point of forming an LLC with a partner, and wondering about questions that aren't obvious but that should definitely be included in an operating agreement. Questions like,
What are the ...
4
votes
4answers
148 views
Need to form company now, but want to make ownership / equity distribution decisions later
(background - few startups, business side)
This is a situation that I've encountered a few times before. Seems not uncommon among startups.
You're kicking around an idea - let's say there are 2-3 ...
4
votes
1answer
454 views
Is there any tax advantage or incentive to leave money in an LLC at the end of the tax year?
We're forming a 2 person LLC and part of what we're trying to figure out is how much to leave in the LLC to build up some capital reserves.
Since an LLC is a pass through tax entity if the LLC earns ...
4
votes
1answer
363 views
US Taxes Filing Process for Zero Revenue LLC's
I am currently employed full-time but the rest of my time is spent on my startup LLC. I was wondering when the US taxes deadline is for LLCs and, more importantly, what the filing process is when you ...
4
votes
3answers
441 views
US LLC formation for non-US resident
I plan to form an LLC in Delaware. I'm a citizen of an EU country and a resident of another EU country. Now... I manage a website that targets one of these countries and I need to be able to charge ...
4
votes
3answers
3k views
Multi-Member LLC - question setting up my EIN
Thanks in advance for any help answering this question.
I have already set up a multi-member LLC in New York State. I attempted to register for an EIN as an LLC but was told by the IRS that I would ...
4
votes
3answers
626 views
The effect of my personal credit on my new LLC
If I have "less than stellar" credit, does this mean that my new LLC starts off with the same "less than stellar" credit ranking?
4
votes
1answer
217 views
Foreigner opening online store in the USA
I'm from Europe, don't plan to move to the USA
I will open an ONLINE store ONLY (no physical stores)
Goods will be imported from Europe
Shipping will be handled by the fulfillment company
I am ...
