Clear Black Posted March 8, 2018 Posted March 8, 2018 If someone like me needs a tax ID which type should I be filing for? Sole proprietor? LLC? Corporation? The business is owned by me but I also have my daughter listed as owner as well on our business cards. She helps me when she isnt in college and during the summers. But for all legal purposes I am sole owner of the business. Thoughts? Quote
TallTayl Posted March 8, 2018 Posted March 8, 2018 That is up to you. You need to choose how your business will be structured. My first was a sole prop. My latest is an S-Corp. My state (Illinois) is uber expensive for both LLC and S-Corp, with a slight advantage to S-corp, so that it what I chose. S-corps are easier to package for sale should the time come. Given the nature of my business, a sole prop was a dumb move on my part so many years ago. It was cheap and easy, and i needed something official quickly for a business bank account. An LLC and S-Corp will help protect your assets in the event of a law suit, since the entities are not linked directly to your personal assets. 1 Quote
Clear Black Posted March 8, 2018 Author Posted March 8, 2018 I guess I was asking because I do not know the difference between the options. I was thinking of going LLC, because of the reasons you state, but am wondering what the process is to get that. Is there a website I need to apply to or a local agency that I need to visit? Quote
TallTayl Posted March 8, 2018 Posted March 8, 2018 Visit LegalZoom. you can walk through the application process for each type and learn the steps, costs, responsibilities, limitations, etc. It is a little overwhelming at first, but it gets easier as your brain processes it all. Then google S-corp ad LLC for your state and figure out which fits you better at this point in time =) If you have a small business association in your area, it's worth a visit. Ditto on community colleges. BOth can help answer state and local specific questions. 1 Quote
Paintguru Posted March 8, 2018 Posted March 8, 2018 Depends on the state. In Michigan, it literally takes 5 minutes to apply for an LLC and is pretty cheap ($25-50). Quote
TallTayl Posted March 8, 2018 Posted March 8, 2018 2 minutes ago, Paintguru said: Depends on the state. In Michigan, it literally takes 5 minutes to apply for an LLC and is pretty cheap ($25-50). You are so lucky! Quote
kandlekrazy Posted March 9, 2018 Posted March 9, 2018 Def depends on the state, in AZ I had an LLC, in Calif I can't afford to do that so I'm back to sole prop but have been looking into costs for SCorp as my son has one and it does have some tax advantages. Quote
Clear Black Posted March 10, 2018 Author Posted March 10, 2018 On 3/8/2018 at 5:31 PM, Paintguru said: Depends on the state. In Michigan, it literally takes 5 minutes to apply for an LLC and is pretty cheap ($25-50). Ya you definetly are lucky. I tried looking over Legal Zoom like TT suggested, and for an LLC in Maine its looking like $350 just for starters. Then to file more stuff with the state itself Quote
TallTayl Posted March 10, 2018 Posted March 10, 2018 2 minutes ago, Clear Black said: Ya you definetly are lucky. I tried looking over Legal Zoom like TT suggested, and for an LLC in Maine its looking like $350 just for starters. Then to file more stuff with the state itself I live in IL where it starts at $650. That was a big reason I went with sole prop first and prayed nobody challenged my business insurance or personal assets. It is just a cost of doing business. 1 Quote
Clear Black Posted March 10, 2018 Author Posted March 10, 2018 1 minute ago, TallTayl said: I live in IL where it starts at $650. That was a big reason I went with sole prop first and prayed nobody challenged my business insurance or personal assets. It is just a cost of doing business. 650!!!??? Daaaaang. Ok, I will take my 350 and swallow that and say no more Quote
olives Posted March 10, 2018 Posted March 10, 2018 I used Legal Zoom to set up my LLC...very straightforward! Quote
franu61 Posted March 10, 2018 Posted March 10, 2018 On 3/8/2018 at 6:28 PM, kandlekrazy said: Def depends on the state, in AZ I had an LLC, in Calif I can't afford to do that so I'm back to sole prop but have been looking into costs for SCorp as my son has one and it does have some tax advantages. 3 hours ago, Clear Black said: 650!!!??? Daaaaang. Ok, I will take my 350 and swallow that and say no more Quote
franu61 Posted March 10, 2018 Posted March 10, 2018 I think it's about $800 per year here in CAL for an LLC. Needless to say I don't have one. Quote
Paintguru Posted March 10, 2018 Posted March 10, 2018 Wow, that's insane! I thought insurance was expensive! Quote
kandlekrazy Posted March 10, 2018 Posted March 10, 2018 16 hours ago, franu61 said: I think it's about $800 per year here in CAL for an LLC. Needless to say I don't have one. Yes it starts there, then depending on volume of sales (which we exceed at our malls) it goes up! Can't make enough to justify it. Quote
TallTayl Posted March 10, 2018 Posted March 10, 2018 what does your S-Corp start at? In IL it is a few hundred less than LLC and in a beneficial tax bracket with the new tax legislation. 1 Quote
Sebleo Posted April 2, 2018 Posted April 2, 2018 I wanted to post this link for llc fees by state. It is current for 2018 and some states have reduced their fees including some that have been mentioned here. https://www.llcuniversity.com/llc-annual-fees-by-state/ 1 Quote
Clear Black Posted April 2, 2018 Author Posted April 2, 2018 54 minutes ago, Sebleo said: I wanted to post this link for llc fees by state. It is current for 2018 and some states have reduced their fees including some that have been mentioned here. https://www.llcuniversity.com/llc-annual-fees-by-state/ RIP any of you in Mass 1 Quote
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