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acwservices
11-01-2008, 10:02 PM
Anyone ever used an online legal firm such as Legalzoom.com,or any other online company to establish an LLC? After much research, I think I have decided to make the change from a sole propreiter to an LLC. My local attorney quoted me $500-$600, and legalzoom is advertising $149 for NC.
ceb58
11-01-2008, 10:12 PM
I have not use any online legal service but I would like to know what/why are some of your reasons for wanting to go LLC. I have looked into also but for all the trouble it doesn't seem worth it. You are not protected from personal liability as some would have you think. You can thank the folks at Enron for that. And basically you will pay tax on the same money twice
480sparky
11-01-2008, 10:22 PM
The difference will be what you get for the money. In the end, yes, you're incorporated.
If you use an on-line service, they will simply incorporate your business as you instruct them to.
A flesh-and-blood attorney in a brick-and-mortar building will be able to advise you on the best corporation for your particular situation.
acwservices
11-01-2008, 10:36 PM
I have not use any online legal service but I would like to know what/why are some of your reasons for wanting to go LLC. I have looked into also but for all the trouble it doesn't seem worth it. You are not protected from personal liability as some would have you think. You can thank the folks at Enron for that. And basically you will pay tax on the same money twice
The only reason I would want to go LLC is for the protection of my personal assets. I don't understand why you would think that an LLC would not offer personal liability protection. I have spent a considerable amount of time researching this, talking with people, even consulting a local attorney- and the forming of an LLC has been highly recommended by all (some recommend forming an LLC, but taxed as an s-corp for tax reasons, but they all agree that an LLC is best for personal liability protection. As far as paying tax on the same money twice- I don't think that is accurate. An LLC is taxed in the exact same manner as a sole prop- income is reported on the schedule C on both at the end of the year.
480sparky
11-01-2008, 10:39 PM
The only reason I would want to go LLC is for the protection of my personal assets. I don't understand why you would think that an LLC would not offer personal liability protection. I have spent a considerable amount of time researching this, talking with people, even consulting a local attorney- and the forming of an LLC has been highly recommended by all (some recommend forming an LLC, but taxed as an s-corp for tax reasons, but they all agree that an LLC is best for personal liability protection. As far as paying tax on the same money twice- I don't think that is accurate. An LLC is taxed in the exact same manner as a sole prop- income is reported on the schedule C on both at the end of the year.
Many times, if you're an LLC, when you apply for credit, they ask you to sign a form to make you personally responsible for the debt.
petersonra
11-01-2008, 10:40 PM
Many times, if you're an LLC, when you apply for credit, they ask you to sign a form to make you personally responsible for the debt.
that is true of many newly formed companies though, and has been for a very long time.
petersonra
11-01-2008, 10:47 PM
I have not use any online legal service but I would like to know what/why are some of your reasons for wanting to go LLC. I have looked into also but for all the trouble it doesn't seem worth it. You are not protected from personal liability as some would have you think. You can thank the folks at Enron for that. And basically you will pay tax on the same money twice
You have more protection than if you have a sole proprietorship and it is hard to pierce that shield short of criminal acts.
You can still set your taxes up as passing thru to you personally (commonly referred to as sub-chapter S).
The thing is that your IRS status is a completely separate thing from the LLC itself.
Just as a thought, don't forget to get your accountant involved. I would trust their tax advise over an attorney's tax advice almost any day. If you don't have a good local accountant, find one! A good accountant and a good attorney are two of the best investments you can make! IMHO
The only reason I would want to go LLC is for the protection of my personal assets. I don't understand why you would think that an LLC would not offer personal liability protection. I have spent a considerable amount of time researching this, talking with people, even consulting a local attorney- and the forming of an LLC has been highly recommended by all (some recommend forming an LLC, but taxed as an s-corp for tax reasons, but they all agree that an LLC is best for personal liability protection. As far as paying tax on the same money twice- I don't think that is accurate. An LLC is taxed in the exact same manner as a sole prop- income is reported on the schedule C on both at the end of the year.
As an LLC you're protected from the mistakes of your employees, not your mistakes and you pay a fixed % in taxes. If you work alone or hire independent contract labor to help you, IMO you're better off buying business insurance & going sole proprietor.
tonyou812
11-03-2008, 10:05 PM
Anyone ever used an online legal firm such as Legalzoom.com,or any other online company to establish an LLC? After much research, I think I have decided to make the change from a sole propreiter to an LLC. My local attorney quoted me $500-$600, and legalzoom is advertising $149 for NC.
My accountant did it for free!!!!!
480sparky
11-03-2008, 10:07 PM
My accountant did it for free!!!!!
No, he did with without invoicing you for it.....:smile:
My accountant did it for free!!!!!
No, he did with without invoicing you for it.....:smile:
What's wrong with that? It's the same as you marking materials or labor down 10% after you raise them 12%. ;):D
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