I was thinking about changing to a Limited Liability Corporation from a Sole Proprietorship. Does anyone know how to go about this process? I really don’t want to go about it myself but I am not sure who I should have help my accomplish this. Should I get a lawyer or can an accountant do it? What about Legal Zoom? Any help would be appreciated. Thanks
Don’t know about Ohio, but ask your accountant/tax guy, if he doesn’t set it up, he’ll know who does
cost is about 1k-1500 If I recall correctly, could be less outside of calif
Once set up you will file each year:
LLC State - usually a corp min tax fee or whatever, in calif it’s minimum of $1700 a year
LLC Fed - just a filing, no tax since the profit flows to your personal income tax
Personal Federal
Personal State
the tax prep fees go up too, like to $750-$1000 a year depending on your accountant etc
all in all with the additional costs you’ll start coming out ahead (vs sole proprietor with full Soc Sec taxes on all profit) above about 75k of personal income a year
hope this helps
what have others found out about LLC’s?
Bruce is right on as regards to talking with your CPA. They will give you the needed direction. I am switching as well in the spring but one thing I was unaware of was that your advertising, print, and really anything with your company has to include “LLC”. That’s why personally I want to get all my print material out and use up all my checks so I don’t waste money on making the change to early
Are you sure about that? that sounds nutty… I would never put llc after my business name… totally unnecessary…
If that info is accurate, I would look into an s corp…
Do not use legal zoom! You need to talk to a lawyer.
Pretty sure you’re mistaken. That is only if your assumed name is the same as your corporation name. My Corp name is Gleam Team USA LLC, but my assumed name is Gleam Team Window Cleaning
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In order for you to be protected and too benefit from being an LLC you have to include the LLC on forms, print, and etc.
I’m not sure to what degree individual states have on LLC requirements but my CPA listed these things that need to be done.
Your not changing your companys name just adding the LLC part
For me personally being a S corp is more hassle and paper work when compared to the ease of a LLC
Right, but he stated you have to use the llc on all advertising.
do you print “Gleam Team USA LLC” on marketing pieces?
I haven’t read the rest of the thread, but you need a lawyer. I was going to become an LLC, but ended up becoming an s-corp. I am now an employee of my company, I don’t pay self employment taxes and legally I am able to go on unemployment in the winter when its dead. I used to save every year and then barely eke through winter. Now i pay crazily high employment taxes but get a weekly paycheck all year. Either way I am paying. My lawyer went through everything with me, and helped me make the decision. I usually am cheap about paying for advice, but this is a must! If you are really wanting to protect yourself, you don’t want to leave any holes in your protection.
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switched last year from an LLC to an S-Corp. Accountant did it all, just some paperwork with the IRS. Didn’t charge me a dime, yearly taxes will go up slightly but not $1000+. Benefits of an S-Corp beyond what Melody mention include tax benefits.
As an LLC any money which was left in the bank account at the end of the year I was personally taxed on. Making the quarterly payments in the down season was a stretch.
With an LLC, don’t you have the option to file as an “S” Corp?
I do not, my CPA didn’t mention that, and she is pretty knowledgeable about the “corporate veil”
I believe you do. At first I was sticking with what we had been previously (started fresh last year) and did not opt for a s-corp. Accountant wrote a letter saying we had forgot to check the box etc etc.
I don’t think a lawyer is necessary, just a good accountant. Mine did everything and saved my head from esplodin 
I agree wholeheartedly. We are set up the same way. I don’t understand why your unemployment rate is so high though, we pay the lowest rate possible.
Okay, alot of you are mentioning s-corp. Is that the better way to go rather than a LLC?
Good info and something that I never thought about. Was looking into LLC but I am butting the breaks on till I figure the unemployment part out. This is a huge safety net especially in the beginning. Thank you.
Putting the breaks on. Sorry for the typo.
yes
S- corp for me now
and a good tax guy
good stuff
