Setup business name. LLC? I have no clue.

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I do computer side work. Years prior, it used to be small jobs maybe only a couple per year. Now it is starting to really take off.

I want to be legal and have a brand/business name to operate under. I found the below quoted on the internet. Does that sound good to anyone?

Should I setup an LLC? I have no clue. All I know is that I want to operate legally and potentially make some decent $$$ on the side. Perhaps some may say to just go "under the table". This scares me a lot as I'm starting to do business with small companies in the area.

In the quote below, is registering your business for the alleged $15 what is known as getting a DBA? How does this all work? Your answers are valued very much!

Quote:
An LLC is overkill for 99% of 1 man small businesses.

Side-businesses should remain as sole proprieterships until they get much larger and need the benefits of the LLC laws.

You can still bill through a company name if you want to start building a brand:

Register your company name downtown for $15.
Open a free business checking account using your company name.
Have your customers write checks made out to your company name.
And set aside 25% of your gross income for Uncle Sam. He wants you to file a Schedule C with your regular 1040 at tax time. He doesn't care about your company. He just wants your social security number with a big fat check stuck to it.

Be sure to maximize your tax savings by tracking your expenses like a hawk. Every mile is worth 50 cents. I recommend using a tracking system like the TaxMinimiser.com (buy the $4 version to see if you like it).

Bottom line: EARN MONEY. Don't set up a "corporation".
 
Last edited:
People can only sue the company, not you the person. They can't go after your home, cars, personal bank accounts, etc.

Originally Posted By: tom slick
What makes an LLC preferred to a sole proprietorship?
 
DBA = Doing Business As. It's a step you can take so you can accept checks made out to "Fred's Computer farm" and look more legit.

What's the worst you can get sued for, data breach?

What's an LLC cost per year?

Any good or bad tax reasons for funnelling money through an LLC then paying yourself as an employee?
 
Protect yourself with an LLC. I've heard you can do it yourself at a reasonable cost with companies like LegalZoom (I have no affiliation with them at all). I haven't used their service so I don't know the details, but I've just heard you can do it yourself for significantly less than getting a lawyer to do it for you.
 
I've been self employed for 11 years now. No employees, just me. What you have quoted is pretty much what I have done. Kept it simple as a sole proprietor. I do purchase insurance and bonding to protect myself and clients from craziness but I have never used them.



Quote:
An LLC is overkill for 99% of 1 man small businesses.

Side-businesses should remain as sole proprieterships until they get much larger and need the benefits of the LLC laws.

You can still bill through a company name if you want to start building a brand:

Register your company name downtown for $15.
Open a free business checking account using your company name.
Have your customers write checks made out to your company name.
And set aside 25% of your gross income for Uncle Sam. He wants you to file a Schedule C with your regular 1040 at tax time. He doesn't care about your company. He just wants your social security number with a big fat check stuck to it.

Be sure to maximize your tax savings by tracking your expenses like a hawk. Every mile is worth 50 cents. I recommend using a tracking system like the TaxMinimiser.com (buy the $4 version to see if you like it).

Bottom line: EARN MONEY. Don't set up a "corporation".
 
Originally Posted By: redhat
I do computer side work. Years prior, it used to be small jobs maybe only a couple per year. Now it is starting to really take off.

I want to be legal and have a brand/business name to operate under. I found the below quoted on the internet. Does that sound good to anyone?

Should I setup an LLC? I have no clue. All I know is that I want to operate legally and potentially make some decent $$$ on the side. Perhaps some may say to just go "under the table". This scares me a lot as I'm starting to do business with small companies in the area.

In the quote below, is registering your business for the alleged $15 what is known as getting a DBA? How does this all work? Your answers are valued very much!

Quote:
An LLC is overkill for 99% of 1 man small businesses.

Side-businesses should remain as sole proprieterships until they get much larger and need the benefits of the LLC laws.

You can still bill through a company name if you want to start building a brand:

Register your company name downtown for $15.
Open a free business checking account using your company name.
Have your customers write checks made out to your company name.
And set aside 25% of your gross income for Uncle Sam. He wants you to file a Schedule C with your regular 1040 at tax time. He doesn't care about your company. He just wants your social security number with a big fat check stuck to it.

Be sure to maximize your tax savings by tracking your expenses like a hawk. Every mile is worth 50 cents. I recommend using a tracking system like the TaxMinimiser.com (buy the $4 version to see if you like it).

Bottom line: EARN MONEY. Don't set up a "corporation".


LLC and business liability insurance.

Or marry an attorney like I did.
 
Originally Posted By: Oil Changer
People can only sue the company, not you the person. They can't go after your home, cars, personal bank accounts, etc.

Originally Posted By: tom slick
What makes an LLC preferred to a sole proprietorship?


This is the reason, plus if you operate a home office get yourself a decent accountant and claim part of your house and vehicle running costs.
 
Originally Posted By: Whitewolf


This is the reason, plus if you operate a home office get yourself a decent accountant and claim part of your house and vehicle running costs.


Some municipalities make you get a business license or zoning for this space. Or your single family residence suddenly becomes worth more to the tax man. Study all angles.
 
Go for it I started my paving business 7 years ago after quitting a job after 17 years driving a semi dump truck made 30.00 a hour but worked for the most evil people .I make less money now but am much happier , I set it up as sole proprietor , go legal , its easy to set up tax id #.Look at the long term things will take time but if you put your heart into it , and do a good job for customers things will grow ,keep receipts, don't use credit , I sold all my toys to start mine and just bought equipment as money allowed. Good luck
 
I'd go with an LLC or 'S' corporation for the liability protection. I can give you the name of good lawyer on Delaware ave if you need one. I talked to him about this before and he gave me a price. I don't remember how much it was but I do remember it was very reasonable.
 
Originally Posted By: Oil Changer
People can only sue the company, not you the person. They can't go after your home, cars, personal bank accounts, etc.

Originally Posted By: tom slick
What makes an LLC preferred to a sole proprietorship?


Well, they can actually, depending on how you behave and how you run your company. It's called 'piercing the corporate veil'.One thing that can get your 'veil pierced' is not maintaining a firm separation between corporate and personal business, property and finances. There's others but I'm not a lawyer so I don't trust myself to explain them well or get them right, so I won't even try
smile.gif
 
Originally Posted By: Oil Changer
People can only sue the company, not you the person. They can't go after your home, cars, personal bank accounts, etc.

Originally Posted By: tom slick
What makes an LLC preferred to a sole proprietorship?
Apparently you haven't heard of the ages old legal tactic of "piercing the corporate veil"
A one man corporation trying to hide assets isn't a new trick and is easy enough to deal with. I'd suggest registering your trade name so no one else can use it and getting some business insurance. Since you are NOT in the drilling and blasting business the cost shound be reasonable.
 
Yes it is very important to maintain a clear distinction between business and personal finances. A decent accountant can help to make sure of this and also to ensure that proper records of salaries and expenses are maintained, and not 'mingled' with personal assets.
 
Originally Posted By: Whitewolf
Originally Posted By: Oil Changer
People can only sue the company, not you the person. They can't go after your home, cars, personal bank accounts, etc.

Originally Posted By: tom slick
What makes an LLC preferred to a sole proprietorship?


This is the reason, plus if you operate a home office get yourself a decent accountant and claim part of your house and vehicle running costs.


Plus with an LLC you don't have to worry about corporate taxes/double taxation and all the accounting that goes along with it. With an LLC, taxes will be just like a sole proprietor if you're the only owner.
 
Originally Posted By: Oil Changer
People can only sue the company, not you the person. They can't go after your home, cars, personal bank accounts, etc.

Originally Posted By: tom slick
What makes an LLC preferred to a sole proprietorship?


This is not true. You can be sued as a person even if you are an LLC.

If you repair computers, and you say "I" can fix the problem, and you do not, then you can be liable personally for monies.

The advice you posted from another source in the original posting is good, for a one man band.
 
Apparently you didn't stop for a minute and think with common sense. This is not the place for a detailed legal discussion. I would hope the OP seeks better council than this forum which gives bad advice FAR too often.

I've been self-employed for years. Everyone I have anything in common with and associate with has been self-employed for years. I know a little of what I speak.

I hope other people don't make the same mistake as you and think I'm Sam Bernstein or something.


Originally Posted By: HerrStig
Apparently you haven't heard of the ages old legal tactic of "piercing the corporate veil"
 
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