Questions about setting up LLC

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Dario

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I've read some online about setting up LLC and even seen a few links that would do it for me for around $400.00+ fee included. (Texas fees are much higher than some State). That said, I am still confused on which is which. Is my understanding that it is more advatageous to have a partnership form of LLC better than single owbership?

Are there any things I should watch out for?
Any online company you can recommend?
Any/all tips will be much appreciated.

As I said, I am still very confused.

Thank you,
 
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Here's some pretty good FAQ's to get you started. I have no experience with the company, though. https://www.incfile.com/LLC/faq-llc.htm
 
Dario,

I am not a lawyer!!!!

A corporation protects you (somewhat) from liability. What circumstances do you foresee (no matter how wild) that will institute a suit against you, and how likely are you to lose??? Do you have a huge estate that makes you "lawsuit bait"?

Don't answer ME, just think about these things. People only sue if they see the ability to COLLECT large sums of money. Attorneys only take contingincy cases where there is a HUGE settlement available.

Perhaps someone else can give a GREAT reason for incorporating, I just don't see it.

FWIW
 
Thanks Lou. I read that one too but the advantage/disadvantage of single vs partnership is still a gray area (to me).

They are actually one of the 3 I have bookmarked as potential one to use if nothing else come up here. If only I am using a single computer I can get these things better organized (some are bookmarked at my laptop) [:I]
 
Ed,

I actually have nothing LOL [:I] so no...I am not a magnet for lawsuits in that regard but better be prepared now than be sorry later.

BTW, this is NOT for my penmaking [;)]
 
Dario, you were looking at becoming the builder correct? I would incorporate for sure as some people will always be unhappy with what they get. Also, contractors may skip on payments to employees, vendors, or even skip on the job all together. As the GC, it's on you to make the stuff right and deal with the insurance or whatever else arises. Plus, you'll more than likely be driving a company vehicle and doing other stuff on the company dime. As Ed said, if you are lawsuit bait, do it. I think a GC who is in a booming market area would qualify.
 
If General Contractor is in your future, SOME sort of corporation makes sense.

I would talk to an attorney, tho, since a "one man" operation can be deemed the same as that person. In other words, everyone will sue you AND the corporation when they are po'ed. And, the court will probably rule against both if the suit contends YOU were not sufficiently vigilant. Best tactic is to WIN these suits.

(NO ONE is EVER sufficiently vigilant!)
 
Dario,

A smart lawyer who is suing you will know when you are using an LLC as a veil and will know how to pierce it.


Seriously, talk to a lawyer. It may cost you $$ today but may save you $$$$$ down the road.
 
I would incorporate and set up a LLC under the business name, with two or more "partners". what the LLC does in a hen basket, is separate the business liability from your personal assets, having multiple partners improves the LLC standing make in it harder to sue the individual in the same suit as the LLC.
 
Originally posted by ctwxlvr
<br />I would incorporate and set up a LLC under the business name, with two or more "partners". what the LLC does in a hen basket, is separate the business liability from your personal assets, having multiple partners improves the LLC standing make in it harder to sue the individual in the same suit as the LLC.

This is exactly how my CPA explained the advantage of a LLC to me!!
 
Dario,

No disrespect meant to those who have posted, but you would be wise to hire an attorney to address your questions. State laws on issues like this vary, so general information on a website or infomration gathered here will not be precisely relevant to your situation. Also, given the purpose of the LLC, it is important to get this right.

jeff
 
I agree an attorney fimular with the state your are forming the LLC is not an option get one!!!!

That is where my info came from the cpa I hired years ago forming Wareagle Enterprises. (still not a LLC as it is not needed for what I do)
 
Originally posted by ctwxlvr
<br />I agree an attorney fimular with the state your are forming the LLC is not an option get one!!!!

That is where my info came from the cpa I hired years ago forming Wareagle Enterprises. (still not a LLC as it is not needed for what I do)

Did your CPA mention that the term War Eagle is protected under copyright law by Auburn University? [:)]
 
Dario,
When I was in Texas and my partners and I set up our business, we had a lawyer draw up the corp. paper work... was definitely worth the expense... agree with Ron and Tracy, the attorney will be money well spent.
 
Having been in business for myself all my life, I have learned that it is ALWAYS prudent to consult a CPA to determine the tax advantages and possible disadvantages to having a corporation, LLC, maybe even an offshore entity... after any choice has been made, then have an attorney licensed in the field of choice do ALL the paperwork and filing for the status of choice.

I have also found that it is definitely worth the money spent to these professionals and let them do the establishment of any professional business regardless of it being a corporation, LLC, or off-shore. The biggest advantages will come from possible tax savings and the limiting of any personal exposure to any liability you incur in the sale of your product or services to others.

My choice for sale of personal land is an off-shore IBC [International Business Corporation], services/products to others would be the LLC or corporation.

What ever you decide to do, be sure to get the advice of a LICENSED FINANCIAL ADVISOR and follow their recommendations to the letter.

Fred
 
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