It is very simple to set up an LLC. That is why many websites only charge $50 or so. All that is required is to download an application from your state authority. Fill out the form and return with a check. FYI, there are no tax advantages to being an LLC vs. a sole proprietor. Profit and losses from an LLC are transferred directly to schedule C of your personal tax return.
I have no idea what you are talking about and I really have no interest in what happens in Jamaica. I really wish you would stop dragging it into every topic.
Truth is, here an LLC offers limited protection from lawsuits. Most suppliers will want a personal guarantee that you will pay, so right there that sidesteps your LLC. If you screw up and somebody gets hurt or dies they will go after you personally, so your LLC is useless there. I don't know what else is left that you could mess up that wouldn't be covered by proper insurance. My advice is to talk with an attorney and an accountant because each state can be slightly different and much depends on you financial situation. A few minutes of their time shouldn't cost much and will get you the answers you need.
-Hal
First, the laws vary from state to state so you cant generalize. Some states they are super easy, some are more complicated. In NY for example, there is a publishing requirement where you must publish the articles or organization in several newpapers designated by the county clerk of county were the LLC office is, get a affidavit of publication, yada yada. Not rocket science no doubt, but Ill just stick to electrical work and pay someone to do that. I have my NY LLC qualified in Montana so I can register all my vehicles and trailers there (I highly recommend this, unless you love your state's motor vehicle office, inspections, emissions, etc) and Montana is super easy: its just a single page form and like $75.
The other reason you may want a lawyer to setup an LLC is if you have several members. Its just more complicated and you want everything defined and laid out.
There are definitely tax advantages to LLC's. In case you have been under a rock for the last hundred or so years, this is america, the land of the corporation. Yes there are tax advantages. One thing your accountant should be doing is dividing the money receive into "income" and "rents". The IRS only cares to see a small minimum amount of "income" and the rest can be "rents" or "reimbursements" from the corporation. The latter is not subject to self employment tax, so that is a big one.
You can also do things like not have employees and instead have partners/members in the LLC. This saves all sorts of payroll hassle, workers comp, unemployment insurance, etc. LLC's are super flexible so you can bring people in and out easily.
Hal, my accountant, who is both a CPA and an attorney, said LLC's in NY offer "extraordinary liability protection".
