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06-17-2019, 06:22 PM | Topic Starter |
Buddy Christ is a Chiefs fan
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Forming your own LLC and doing contract work
I put in my resignation late last week. It was suggested today I might be able to do some contract work for them remotely which has me intrigued. Who on CP has formed their own LLC and done some contract work. Any suggestions on how to handle it? Would you go some other route?
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06-17-2019, 06:31 PM | #2 |
It was not a fair catch
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I had a lawyer do an LLC. It is basically a shell corporation for liability reasons. It costs 40 bucks a year to reaffirm it with the state. I do not remember the original cost because it was done when I did the will/trust.
You may be able to do an easy LLC with Legalzoom. Or with a lawyer friend.
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06-17-2019, 06:39 PM | #3 |
He's Mahomie!
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LLC or S Corp. Talk to an accountant. S Corp saves a ton on tax write-offs.
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06-17-2019, 06:48 PM | #4 |
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This
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06-17-2019, 06:58 PM | #5 |
Cheat Death
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Ya gotta look out for number one and try not to step in spreadem sheets.
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06-17-2019, 06:47 PM | #6 |
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I created an LLC in March. I would highly encourage you to use LegalZoom as I did.
Get the legal addition and the compliance addition. Skip the accounting unless you bad with the spreadem sheets. California charges all LLCs 800 smackers almost immediately so thank your lucky stars you don't live here. Then again I'm spending the 4th on a boat watching the fireworks over the Pacific so I guess you get what you pay for. |
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06-17-2019, 07:08 PM | #7 |
Buddy Christ is a Chiefs fan
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We may be moving states fairly soon and it sounds like the LLC you have to reregister in your new state. Do you know if you have to do that with the S Corp?
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06-24-2019, 01:03 PM | #8 | |
In BB I trust
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Quote:
No one has handled this question that my skim of the thread revealed so... You may form your entity in any state. Under most circumstances, you want to form the entity in the state in whch you live and do business. There can be reasons to organize elsewhere (often Delaware), but none that will apply for a single person entity offering IT services. So if you're definitely moving to New State, you probably want to form the entity in New State. If you're moving to New State next year, but working in Old State this year, you're in a bit of an awkward spot. Your options: 1. Form entity in Old State, then next year when you move you can either form a new entity in New State and merge the Old State entity into the New State entity, or foreign qualify the Old State Entity in the New State. The latter is simple, but unfortunately means you're paying annual fees to BOTH states, which sucks. The former (merging the old into the new) is moderately complex, and I wouldn't advise it without a lawyer or unless you feel pretty savvy/comfortable with this stuff. 2. The option I would go with if you're definitely moving -- Form entity in New State, and foreign qualify the entity in Old State. Once you move, you can let the foreign qual lapse, which means the annual fee will also lapse. You pay fees in both states for just the period in which qualified to do business in both.
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"I love signature blocks on the Internet. I get to put whatever the hell I want in quotes, pick a pretend author, and bang, it's like he really said it." George Washington Last edited by Amnorix; 06-24-2019 at 01:29 PM.. |
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06-24-2019, 09:05 PM | #9 | |
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Quote:
Generally, and I'm speaking a bit off cuff because it's been some time, he won't have much to worry about other than the entity formation in each state as you said. That and the complication of state income taxes that will result, but a CPA can help him with that and it becomes relatively moot. Now, if he were making sales of goods and subject to sales and use taxes, he'd need to consult Nexus laws in both states, if he intended to do business in both states concurrently, but that doesn't seem requisite given his criteria. As for entity formation, he shouldn't have to meet any special licensing guidelines that I know of. |
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06-17-2019, 07:30 PM | #10 |
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You still haven't left Omaha?
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06-17-2019, 07:56 PM | #11 |
Buddy Christ is a Chiefs fan
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Nope, I had kind of been waiting on the perfect job to make the move. I think I just found it. Work from home and work from anywhere in the US.
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"You know, they lay down with their ugly wives in front of their ugly children and just look at their loser lives and then they look at me and say, "I CAN'T PROCESS IT!" Well, no, and you never will. Stop trying. Just sit back and enjoy the show .... You know?" Carlos Irwin Estevez |
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06-17-2019, 08:05 PM | #12 |
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Oh hell yes.. If you have a chance to pull that off. Get after it.
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06-17-2019, 07:34 PM | #13 |
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Yeah done it.
LLC or S-Corp doesn't matter really, still register in the State... You have to file Articles of Incorporation with the State for a S-Corp. S-Corp just, really, declares pass-through taxation to the members rather than being taxed as a C-Corp. A LLC can actually choose to be taxed as an S-Corp. No real reason to be an S-Corp unless you intend to pay yourself a salary from the earnings of the business and expect there to be additional net income. All you really need is to file as an LLC to help protect your personal assets, which both do. Now, if you do elect S-Corp status as an LLC, you can reap the benefits of less Payroll Tax and not having so much paperwork for a C-Corp and everything functions pretty much the same. Then, get insurance. General Liability, Errors and Omissions, and Data Breach should be of primary importance if you're doing consulting and working with another company's data and providing them suggestions. Last edited by kccrow; 06-17-2019 at 07:47 PM.. |
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06-17-2019, 07:38 PM | #14 |
The Constitutional Choo choo
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What do you do for a living?
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06-17-2019, 07:59 PM | #15 |
Buddy Christ is a Chiefs fan
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Well, I am currently doing healthcare analytics/heathcare IT but I am doing a slight change in my direction as I am still in healthcare doing "IT stuff" but it really isn't analytics.
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"You know, they lay down with their ugly wives in front of their ugly children and just look at their loser lives and then they look at me and say, "I CAN'T PROCESS IT!" Well, no, and you never will. Stop trying. Just sit back and enjoy the show .... You know?" Carlos Irwin Estevez |
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