Question/advice about setting up an LLC

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  • #82552 Reply

      …is there any reason to not use one of the free online options set up an LLC.. what are the benefits of using an attorney or paid service to see this up?

      Second question; Is there any reason that I should not set up an LLC for my children where they can clean out air BNB’s and earn money and maybe also have other small business ventures (stalls at the farms market, buy a car to use for school year and rent out during summer). Ideally we want them earning and contributing to Roth IRA’s etc.

      Any feedback greatly appreciated!

      #82553 Reply

        It really depends on your state tax laws. But in Tennessee, you pay an annual franchise tax on any assets held by the LLC. As they say, there is no free lunch. LLCs are wonderful entities, but there’s a lot of hatred towards people that make money in the general population. So, it’s very easy for politicians to vilify the “rich” for an easy tax grab.

        And I don’t know if you can do a pass through on your tax rate like you can with a corporation on an LLC. But if you can’t, you’re going to pay a higher marginal rate as well. You may want to consult with your CPA before opening up an LLC.

        #82554 Reply

          You don’t need a lawyer to fill out the forms.

          However, if you actually need the llc for liability protection, you might want to consult a lawyer. You will want to make sure you are titling assets and conducting business in a way that clearly separates your personal and business activity.

          #82555 Reply

            Depends on what your plans are for the business, how much liability is involved, if it’s in a regulated industry that may require licenses or certifications, etc. Most states do make it pretty easy to establish. You want to pay attention to the Operating Agreement (if required in your state) to ensure it makes sense for the business.

            #82556 Reply

              I cannot answer the second part of your question. But for the first part, you literally just do it on your states. State department website. Don’t even use a service. Don’t use a free website. Go to the website of your state and register there. That’s the cheapest way to do it. And it’s no harder to do it that way than it is to use a service. Because you need the same amount of information both ways.

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