Cheapest way to start your LLC

[aruns4]

wtf that much???? all that stuff costs ~70? here and it is one time fee, should get one when i feel like my income would be a problem, at the moment my income is not high enough to be bothered by.

Unlike America most countries from Europe do not allow foreigners to set up an LLC.

I found Bulgaria is more friendly and charges only fixed corporate 10% tax. Any one from the world can form a business over there.

 

[savvypro]

 

[savvypro]

One thing I forgot to ask was: has anyone been hit by hidden charges - as it seams the first year may be free, but as I've been checking out the available registers. It seams that some with nice initial costs end up issuing hidden charges as the year goes on after you?ve registered, potentially causing the nice cheap price to double or triple.

On the taxation + where to setup issue. Over at a asset protection forum I came across. The consensus by a few of the lawyers who regularly post there, is that for most people (especially those who have a physical presence) it's best off for them to just setup in their own state - so that they don?t have to deal with Nexus issues. Then focus on the operating agreement, have it written to gain savings and tax advantages.

There used to be a thread here on bhw, which covered how to diy your own LLC and what to wright in the operating agreement, but the info (operating agreement bits) is no longer available.

 

[aruns4]

 

[savvypro]

Do you think non resident can set up LTD plus bank account in the UK? I cannot come to the UK. Power of attorney will work?

I am neither a US or UK citizen. starting a internet business where I can provide services like web design, seo etc so no office or employees needed. Having a LLC or LTD in US or UK with bank(to process wire payments) is added advantage to my business. of course I will pay taxes where I incorporate and I am well aware of double tax treaties.

New mexico sounds a good choice but UK seems cheap.

What do you suggest?

The short answer is: the problems you'll have for setting up a US company and bank account will be the same for the UK - just more so.


Long answer:

Setting up the LTD wouldn't be a problem, the bank account will require a bit more of an effort. Especially if you don't already have a personal account with the bank. All the high street banks (the ones that you can walk into with out an appointment) seam to be moving their business banking to a non face to face service. And just focusing on mass banking at the branches. Which means it takes longer to get anything done when setting up the account. And when you do need to see someone, you have to wait ages for an appointment.

The last LTD I setup took about 2 months (about 2 to 3 weeks was wasted by them sending letters instead of phoning), to get a bank account opened (and it was with the bank I personally have an account with). Everything they asked for, in terms of proof of what were going to do with the business, was completely pointless, as they wouldn't/couldn't check the validity or accuracy of what we provided. I found that out after asking them some simple pointed questions. We could have forged everything and they wouldn?t know.

They wouldn?t accept letters from government departments as proof. But they would quite happily accept a website I put up in a few minutes as proof. The could check the website so they asked me to email them a screen capture to be used as proof. Two months of this stupidity.

Anyway, for the next LTD, that I?ll be opening up for a project in the next few months - we?ll be going with HSBC.

The tax rate on profits for UK LTD's start off at 20%. So bare that in mind. However, your pay will be tax free if you spend less than 90 days in the UK per tax year. As UK tax is territory based.

....

The New Mexico LLC, is good if you can set it up correctly. However the anonymous route, could cause some issues with setting up a bank account. As you would have to rely on the organiser (registered agent) providing you with chain of ownership documents. The cheap one?s might not do it or more likely it will cost you a bit.

If your not too concerned about keeping your details off the public record or want to setup an account for the LLC. Then having yourself listed as the organiser, would make it easier if you don't want to chance it with the registered agent.


I myself have put on hold my setting up of a New Mexico LLC. While talking to a registered agent on Monday, they recommended a different state (as the LLC could be done in a lot less than 7 weeks - which seams to be the time it's currently taking to process the applications in New Mexico).

While doing a bit of digging I found that the recommended state offers Series LLC?s for a bit more than the New Mexico LLC - basically $50 more in filing fees. The minimum requirements to setup the LLC are the same (except you can state that the LLC is a series LLC). But every year you have to file a certificate and a tax return which costs $25 (with the state).

For me, these two yearly requirements are not such a big deal breaker as I don?t plan to operate the LLC in the US or in the state, nor will it generate any income as it will be a holdings company for IP, copyrights, trademarks etc.

The ability to create new cells, which are esently full fledge LLCs, for each thing I create or acquire. Without having to file for a new LLC or the cost that each bonafide LLC would set me back. Then the certificate and a tax return is worth the hassle. I just need to figure out, how to do it without causing issues.

The main caveat is, that the operating agreement will be key.

Once I get my ducks in a row, I?ll be setting up a Series LLC for a lot less then I thought it would cost. The Delaware series LLC costs that I originally saw, put me off a couple of years ago.

 

[BiggestPin]

If any BHW member could post detailed information about how can a foreign citizen could open a US LLC and get an EIN for tax purposes or a TIN, I would appreciate it.

Please post from your experience and I am sure others will appreciate it too and benefit from your post.

 

[cybergold]

Get an S-corporation instead of an LLC.

So far we have been talking about LLCs and the benefit of pass through taxation. You can get the same for S-corporations. (need to file one form with the IRS).
However, if you set up an S-corporation, you can substantially reduce your self-employment tax. SO: Get an S-corporation and pay NO self-employment tax !!!

 

[fuzzy_corleone]

Such an overload of information. I just want to start my LLC, get a bank account + debit card, and start my drop shipping business.

1) I live in New York. Should I register a business in Delaware because it's a corporate haven?

2) I plan on being the only employee/person in the company. How should I be taxed?

3) I plan on moving all of my personal assets (car, house, cable bill, phone bill, electric bill, etc.) under the company's name. What are some of the tax advantages of doing that?

 

[Master-x]

in same situation...should I try to register my business in Delaware? What pros and cons
Thanks

 

[USProxyKing]

I don't know about other states, but here's how it goes in florida:

1. Sunbiz.org
2. Select LLC
3. Name yourself or partner as registered agent
4. Pay the $125 fee
5. Wait 1 day and goto the IRS website and obtain EIN for free..

Total: $125

 

[box0204]

im in NYC and been a sole proprietor for 6 years already and run a cash business. I am thinking of doing an LLC, but im not sure exactly how to go about it. Or should I get a corporation? I only report 30k a year.

Any suggestions?

 

[fuzzy_corleone]

This is inaccurate. You don't have to have a registered agent that is different from yourself, you can do it yourself. I have opened a LLC twice, in two different states. One cost like $115 and the other one just under $100 for the LLC. I just went online to the state website and filled out the forms, took about 10 minutes, then paid with my credit card. Then you go to the IRS website and get your EIN in your LLC name, that takes about 5 minutes.

All you have to do now is wait for your fancy certificate to arrive in the mail.

This is really simple no need to pay $100 to some middleman for 15 minutes of filling out info that you will most likely have to fill out and give to that middleman anyways.

Maybe I'm missing something but when I went to Delaware's website (http://corp.delaware.gov/llcform09.pdf) there was no option to pay with a debit/card card. It's just a PDF document that you have to print and fill out, then you mail/fax them the form with check or money order.

 

[Deleted member 264944]

Thankyou x2

 

[wootwoot]

I'm going to be setting up a New Mexico LLC, in a few weeks. But I'll be doing it in a way that will get me the same privacy as that offered by the "New Mexico LLC privacy shelf company" sellers. But without the price tag, and thats without the mail forwarding address that you?ll need as well.

Warbucks did a thread where he covered his experience when setting up his New Mexico LLC with freeregisteredagent. But since then they have changed their policy (and it looks like the other company registration services have too), and you are now named as the person setting up the LLC (which is not required) - so your details show up in a search of the company.

If it goes as planed, I might start offering New Mexico LLC?s if there is interest. For those not in the US, a New Mexico LLC is a hell of a lot cheaper to setup than an IBC in one of the usual offshore jurisdictions (e.g.: the British Virgin Islands). As long as the LLC has nothing to do with the US (no operating there, no generating revenue there) there shouldn't be any problems.

And remember: I'm not a lawyer, nor do I play one on TV, or pretend to be one on the Internet...

Savvypro did you set up an LLC through freeregisteredagent? I'd like to create one without my name on the LLC if possible. Are there any other good sources to go through?

 

[ic3cold]

To VelvetVampire
You can do that, it's better that you go to a Tax haven State such as Delaware, as US Corporation laws consider any out of State company as foreign, Delaware, has the easiest and the more flexible laws you can hope off. You will need a permanent agent though, so you have to pay annual fees ...

 

[Last_Legend]

Aaah got my answer

 

[OldSalt]

Just wanted to add a note to this thread - although the links and info are over 2 years old, they are still VERY valid. I was searching for ways to create an LLC and saw this thread in the search results. Of couse I checked it out.

I created my LLC and had an electronic copy in literally 10 minutes - for the cost of the $100 state filing fee (and I used my own name and address as the Registered Agent). Since I did that during the weekend, I had to wait until Monday to create my EIN - but that too took about 10 minutes and was 100% free.

My thanks to xphase for the info - as I said, still very much current.

OS

 

[ebay_power_seller]

They usually say "you have to have a registered agent" but they skip the fact that you can be your own registered agent.
I think a registered agent is a valuable tool if you don't want your name listed publicly.
The free registered agent web site is good but in case you miss the fine print, it is 99 dollars a year after the 1st free year.

I have seen a web site with a name like inc 4 free, or something like that, they do give you the first 6 months free, then they charge you 99 per year.
The same deal, but this time you can someone to do the incorporation for you...

And amerilawyer is also good, they have all included packages, but they don't have the registered agent service.

 

[ebay_power_seller]

By the way, there is also incfile dot com that incorps the LLC plus gives the first year of registered agent for 50 bucks. Essentially the same deal as inc 4 free

 

[TheRealAro]

And LLC Protects right?