Starting a Business

lexluethar

Active Member
Does anyone have any input on how to go about starting an LLC (limited liability corporation)? I would lit to start my own business. I've read up on s-corps and c-corps, but aside from the differences between those two i'm at a loss where to go from here. I'll probably go through a lawyer to file, but i know there are some online places where you can file too. I know there is a state tax involved which runs around 500 dollars but that is about the extent of what i've found.
I think an S-corp would fit me right now, I'm not dealing with tons of money, and i don't have anyone on the 'payroll' except myself. And from my understanding a c-corp gets taxed twice (the company then the individuals being paid) but the positive side is it is easier to pay your employees. S-corps only get taxed once, because the earning you receive get filed under you income. So tax becomes easier, but paying employees becomes more difficult.
I plan on going to a lawyer within the next few weeks and file for my LLC, but I wanted to see if i could get any input from you guys about this. What are the costs generally, and if you could break down those costs that would be great (i know they vary, but depending on the state and lawyer it usually is X dollars to file, X dollars for the lawyer fee, etc).
I live in Missouri, my office will be in Missouri, but I will be conducting business in other states as well as Missouri. I'm wondering if I want to change my company name if I have to refile and pay the fee again or how that works.
I know lots of questions, but really any advice or insight would be helpful. I'm trying to be as prepared as possibly. I have a business plan detailing what i hope to accomplish, and how to accomplish it within the next 5 to 10 years.
 

lexluethar

Active Member
Haha, well that was an option. And i've looked into their 'packages' a bit.
Feel free to post or PM later when you are able to give more advice - i understand why you can't speak about it though :p
 

crimzy

Active Member
In Michigan the filing fee is $50.00. I'd generally charge clients $500 - $750 to incorporate them, (it's actually very little work).
S corp and LLC's are taxed very differently and I'd probably recommend an S corp for your business so you can write off some profits as distributions instead of income. I'll take a look for the forms when I have some time later and PM them to you if I can locate them.
BTW, if you are doing business in other states, make sure you have a certificate to do business in those states. The filing fee will generally be around $25.00 - $50.00 per state. Those certificates allow you to avail yourself of the legal process in those states in case you ever have a dispute or legal claim.
 

lexluethar

Active Member
I live in Missouri, is the filing different if i'm going to conduct business in Missouri AS WELL as other states?
 

crimzy

Active Member
Originally Posted by LexLuethar
http:///forum/post/2633423
I live in Missouri, is the filing different if i'm going to conduct business in Missouri AS WELL as other states?
I revised my post... may have addressed this above. I can discuss this with you in more detail later if you have additional questions.
 

crimzy

Active Member
Here you go...
http://www.sos.mo.gov/business/corporations/forms.asp
Most of the forms come with instructions and fees. Do yourself a favor, don't throw a bunch of money away on an attorney who is going to fill out these same forms. You may be better off talking to a CPA to discuss tax advantages based on your business plan. Let me know if you have other questions I can answer for you.
 

ruaround

Active Member
go with an S-Corp... file with your Secretary of State... and get a good accountant... dont use a lawyer they charge too much!!! crimzy charging $750 for something that you can do yourself... geez that highway robbery!!!
 

crimzy

Active Member
Originally Posted by ruaround
http:///forum/post/2633496
go with an S-Corp... file with your Secretary of State... and get a good accountant... dont use a lawyer they charge too much!!! crimzy charging $750 for something that you can do yourself... geez that highway robbery!!!

But for that money you would get to meet with me at my office, talk to me, see pictures of my kids and shake my hand. Pretty good deal if you ask me.
 

lexluethar

Active Member
Haha, thank you! I'll go with the S-corp for the reasons I stated earlier. And I will download these forms tonight.
As for other states, do I need to go through their state office to register, or do I go through Missouri which would be allowing me to conduct business elsewhere?
 

lexluethar

Active Member
Originally Posted by crimzy
http:///forum/post/2633502
But for that money you would get to meet with me at my office, talk to me, see pictures of my kids and shake my hand. Pretty good deal if you ask me.

THAT IS HILLARIOUS

Sounds like a steal... literally.
 

crimzy

Active Member
Originally Posted by LexLuethar
http:///forum/post/2633503
Haha, thank you! I'll go with the S-corp for the reasons I stated earlier. And I will download these forms tonight.
As for other states, do I need to go through their state office to register, or do I go through Missouri which would be allowing me to conduct business elsewhere?
No, each state has its own certificate and must be mailed to that state's governmental agency. Do a search under "certificate of authority to transact business" under the state name. I have one for Michigan if you need it.
 

lexluethar

Active Member
Not yet:p but hopefully some day. I will need one for Colorado and Kansas though...
Are there tax implications of filing other than the initial fee and filing the earnings under my income? Do these licenses expire after a certain point? Once filing and paying my fee do they send me my business license along with my tax code(?)?
 

ruaround

Active Member
Originally Posted by crimzy
http:///forum/post/2633502
But for that money you would get to meet with me at my office, talk to me, see pictures of my kids and shake my hand. Pretty good deal if you ask me.

do i get a generic bottle of water and some tank talk too??? if so then you just might have a good deal right there!!!
 

louti

Member
Yea, I think an S-corp will be good for you. When I started my corporation, I used an accountant. He charged $750, but a lawyer was gonna charge me like $1000. In TX, btw. Also, I don't know if you'll have employees or not, but if you do, you should look into an employee leasing company. Most won't deal with small businesses, but some will. They will save you some headaches.
 

crimzy

Active Member
Originally Posted by LexLuethar
http:///forum/post/2633514
Not yet:p but hopefully some day. I will need one for Colorado and Kansas though...
Are there tax implications of filing other than the initial fee and filing the earnings under my income? Do these licenses expire after a certain point? Once filing and paying my fee do they send me my business license along with my tax code(?)?
There are fees each year to keep the corp active. In Michigan the fee is $15.00 per year. There are not really additional tax implications aside from the obligation to file a corporate return. Your CPA will be able to identify certain receivables as distributions and certain money as income to minimize your tax liability. Your Articles of Incorporation is the document that creates the corp. Other forms are optional, such as Operating Agreements, Assumed Names, etc. Here is an Application for a tax ID no.
http://www.irs.gov/pub/irs-pdf/fss4.pdf
By doing this, I feel like I'm costing your prospective lawyer at least $500.00. Apologize for me.
 

stdreb27

Active Member
Originally Posted by crimzy
http:///forum/post/2633502
But for that money you would get to meet with me at my office, talk to me, see pictures of my kids and shake my hand. Pretty good deal if you ask me.

Hey if it included a tour of your tanks. It would be worth it.
 

jennythebugg

Active Member
crimzy we see pics of your kids here for free...does that mean we will get the discounted rate of $ 99.95 for the handshake in your office?
 
Top