LunaTechInc
Newbie
- Dec 16, 2006
- 17
- 7
I have an S Corp. and its been pretty beneficial thus far.
Should I get a LLC
- Thread starter stealth_eclipse
- Start date
Whisker
Senior Member
- Dec 26, 2007
- 841
- 1,335
Why do you keep saying that he is involved with fraud?
I'm not. But it seemed wise to point out the distinction. With eCigs you still get the nicotine and OP even mentions that some people want to get them banned.
I haven't got a clue what he's doing to advertise, but I've seen several eCig ads that tout the "health benefits".
All it takes is one aggressive Lawyer who wants to make a point, or try to drive you to a settlement. It's not whether they would win, they can bleed you dry in court. All it would take is some fancy lawyer work and they could probably get a judge to subpoena the LLC owner personally, citing "fraud" whether it's there or not.
I mentioned it because the general tone of many posts in this section of the forums seem to indicate that people think that an LLC is like a bulletproof car, and that there's no way they can be personally sued for something done THROUGH an LLC. I have no idea if the OP thought that, but it seemed wise to bring it up in general.
transistor
Registered Member
- Sep 19, 2008
- 55
- 2
i was wondering about this too. lots of good info in this thread, thanks
awtprod
Junior Member
- Apr 2, 2011
- 155
- 117
That's another misconception. If you get sued, they can still get at your personal assets.
wowhaxor
Elite Member
- Apr 28, 2007
- 1,924
- 3,371
Being incorporated, even limited liabilty is always a good idea IMO if you're doing business, even a small amount. It also can be helpful for tax purposes if your tax preparer is down.
Think about it like this, most states are slightl under $100-$150 to form an LLC (anual renewals are the norm I've lived in a good number of states in the last few years and it ranges from like $35-$85 to renew generally around 1/3 the original cost) and once you do that (or even before its processed once you get it started) the IRS will give you an EIN instantly on their website with a very basic form. This makes it cheap, quick and easy; if you're lazy or doing big business and afraid (or smart) that you may mess something up that will haunt you then guess what; professional attorneys will create a LLC for you for around $125-$175 in your local city or you can ge it done online for around $50, both of these prices are on top of what it costs.
If you are not pulling a profit above $100 to form your LLC and $50 a year after that then you are obviously not doing enough business to worry about it. But, in my opinion if you are even just barely breaking a profit above those low fees then the peace of mind and protection if something comes up are worth it.
That is true and not. If you're basically a 1 man show and using your LLC with the intention of shielding yourself from suit they will easily be able to sue and go after your personal assets as well. I can't remember but the slang is like a business/corporate veil. If you created your LLC with the best intentions and follow good practices such as paying yourself a salary and reinvesting or holding profits above that amount in your LLC name, having maybe another 1-2 people on the LLC, and basically just treating the LLC like it is a business instead of an extension of you or a personal piggy bank and, although you're the owner, things are kept seperate generally you will be alright as long as you aren't blatantly fraudulent with your business/practices and you retain a good attorney.
Think about it like this, most states are slightl under $100-$150 to form an LLC (anual renewals are the norm I've lived in a good number of states in the last few years and it ranges from like $35-$85 to renew generally around 1/3 the original cost) and once you do that (or even before its processed once you get it started) the IRS will give you an EIN instantly on their website with a very basic form. This makes it cheap, quick and easy; if you're lazy or doing big business and afraid (or smart) that you may mess something up that will haunt you then guess what; professional attorneys will create a LLC for you for around $125-$175 in your local city or you can ge it done online for around $50, both of these prices are on top of what it costs.
If you are not pulling a profit above $100 to form your LLC and $50 a year after that then you are obviously not doing enough business to worry about it. But, in my opinion if you are even just barely breaking a profit above those low fees then the peace of mind and protection if something comes up are worth it.
That is true and not. If you're basically a 1 man show and using your LLC with the intention of shielding yourself from suit they will easily be able to sue and go after your personal assets as well. I can't remember but the slang is like a business/corporate veil. If you created your LLC with the best intentions and follow good practices such as paying yourself a salary and reinvesting or holding profits above that amount in your LLC name, having maybe another 1-2 people on the LLC, and basically just treating the LLC like it is a business instead of an extension of you or a personal piggy bank and, although you're the owner, things are kept seperate generally you will be alright as long as you aren't blatantly fraudulent with your business/practices and you retain a good attorney.
naturalbornthriller
BANNED
- Apr 22, 2011
- 249
- 95
You can't really go wrong with incorporating. Why not spend a couple hundred bucks to incorporate to be able to sleep at night knowing if you get sued, only the company is liable? I say better safe then sorry.