The LLC Question

Greg Fultz

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Location
Mattoon, IL
I'm currently a sole proprietor. I'm looking to finally go and make it an LLC with new branding/name change but I know there is 1000 different places where you can get it done and I've looked at all the "popular" ones but my question is since I'm a one man operation would it just be easier to file myself with the state or should i do the AIO package with a service?

What's the best place to get it done at and should i opt for the registered agent option?

I know this has probably been asked a 1000 times already but not sure if I should just do it myself or let a service do it.

Thanks!
 
Lawyer.

I don't care how simple something is. When it involves my business, I contact a lawyer. Better to have it done right in the beginning than deal with a mess later. If it's not in your budget to hire a lawyer, then reconsider going the LLC route until you can afford it.
 
If you will be a single-member LLC (meaning you are the only owner of the LLC, which most self-employed LLC owners are), from a taxation perspective, you will be taxed as a sole-proprietor. It is a pass-through business entity, where your business revenue is your income.

From a taxation perspective, single-member is not so good due to an additional self-employment tax of ~15%. Also, if you are not disciplined enough as a person with money/budgeting, not paying quarterly taxes through out the year will result in IRS penalties. Also, when you will do your income tax, you can get a surprising (unpleasant) bill on what you owe in taxes if you have a significant revenue amount. Have to be super disciplined with your expenses tracking, so you can deduct as much as possible.

If you have the slightest intent on growing the business to a scale where you will hire employees (including yourself) and pay with W2s, definitely go for the S-Corp entity (pay salary and dividends, if you choosing to do so). With S-Corp, you will have to do your payroll, or hire a payroll company/service.

You can search online (Google or YouTube) with keywords such as "Benefits LLC vs S-Corp" or whatever. Plenty of info available.

For LLC, as mentioned above, go register the business (business name, your name, etc) at your Town Hall Center and go online to your state and register the LLC and pay the ~$500 yearly fee. You will get your EIN number a go from there. Unless this makes you extremely uncomfortable, no need to hire a company or lawyer for this.

Generally speaking, most people start with an LLC, as it is very simple to start off. Once things begin getting complicated with business growth, then you can opt with the IRS to be taxed as an S-Corp (there is an IRS form for this), or convert the LLC to an S-Corp entity.

Good luck!
 
As a end user would come to you and the rest of us for IT technical help.

Where would you look for something as serious as this?.

Fellow IT tech's from around the globe, where rules and regs I think may change from state to state, or county to county perhaps. Or from someone who knows exactly what they are doing?.. I.e an accountant.
 
DO NOT use a service. Hire a local lawyer who can probably bang out the LLC paperwork for a couple hundred bucks max and teach you how to do the maintenance yourself.

I have a friend who was paying $149 a year for annual report filing. It’s a $25 fee to the state and takes about 3 minutes to fill out online. Same with registered agent service. It’s someone who accepts and scans mail for you. Send it to yourself and you save another hundred or so a year.
 
Thanks for the advice i was always leary of using a service since i'm already registered with the state as a sole proprietor i think i'll just go with the local lawyer approach and handle it myself. thanks again!
 
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