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Should I get a LLC

Discussion in 'Business & Tax Advice' started by stealth_eclipse, Apr 5, 2009.

  1. LunaTechInc

    LunaTechInc Newbie

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    I have an S Corp. and its been pretty beneficial thus far.
     
  2. Whisker

    Whisker Moderator Staff Member Moderator Premium Member

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    Why do you keep saying that he is involved with fraud?
     
  3. 4wanglah

    4wanglah Junior Member

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    Sorry noob question here..

    Can people outside US obtained LLC as well??
     
  4. Warbucks

    Warbucks Junior Member

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    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.
     
  5. transistor

    transistor Registered Member

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    i was wondering about this too. lots of good info in this thread, thanks
     
  6. Euclid

    Euclid Newbie

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    Yep I can only agree with Warbucks says. The primary reason to incorporate a LLC is for your own protection and not do any funny stuff.
     
  7. awtprod

    awtprod Junior Member

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    That's another misconception. If you get sued, they can still get at your personal assets.
     
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  8. wowhaxor

    wowhaxor Elite Member

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    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.
     
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  9. download

    download Supreme Member

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    I don't even sell any products and I just do web design and other web services and I'll be getting an LLC in the next month.

    I mean, why not? It's only a hundred dollars or so and there's less tax and less liability :)
     
  10. naturalbornthriller

    naturalbornthriller BANNED BANNED

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    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.