Advice on a L.L.C.

kc86 · Postby **kc86** » Mon Oct 22, 2007 12:42 pm

Met with my banker and broker today. Both of them recommended that I set myself up an L.L.C. to manage some of my investments. I was just curious if any of you guys have one or use one. I am curious as to how easy an L.L.C. is to manage. This will be primarily used to monitor and manage some small investments. Any ideas or opinions are greatly appreciated. If I do decide this I would do it myself. I do not really feel like forking out anymore money for bankers or brokers.

Deagle · Postby **Deagle** » Mon Oct 22, 2007 12:54 pm

ask your accountant

Law Duck · Postby **Law Duck** » Mon Oct 22, 2007 1:15 pm

For the most part, LLC's are very simple to maintain. Especially if it is a member managed LLC and you are the only member. I would strongly recommend talking with your accountant and attorney before starting one. I understand not wanting to spend the extra money, but why do it if you are not going to do it correctly!!

Don Miller · Postby **Don Miller** » Mon Oct 22, 2007 1:16 pm

It's not expensive at all. I'm thinking less than $200. It's just a matter of filling out paper work. My CPA has set up two LLCs for me. One is an investment company and the other is a hunting club. It would be a wise move to do it because you would be somewhat personally sheltered from lawsuits and other liabilities.

kc86 · Postby **kc86** » Mon Oct 22, 2007 1:44 pm

Don Miller wrote:It's not expensive at all. I'm thinking less than $200. It's just a matter of filling out paper work. My CPA has set up two LLCs for me. One is an investment company and the other is a hunting club. It would be a wise move to do it because you would be somewhat personally sheltered from lawsuits and other liabilities.

Is there a lot that has to do with tax payments and such??

Don Miller · Postby **Don Miller** » Mon Oct 22, 2007 2:03 pm

kc86 wrote:
Don Miller wrote:It's not expensive at all. I'm thinking less than $200. It's just a matter of filling out paper work. My CPA has set up two LLCs for me. One is an investment company and the other is a hunting club. It would be a wise move to do it because you would be somewhat personally sheltered from lawsuits and other liabilities.

Is there a lot that has to do with tax payments and such??

Not really. No more than personal taxes. If you have questions about setting up an LLC, I'd talk to a CPA or tax attorney first to answer any questions you might have, but it is not that big of a deal to get an LLC set up. Really it's just a matter of filling out some paperwork and getting your tax ID number.

msbigdawg1234 · Postby **msbigdawg1234** » Mon Oct 22, 2007 4:11 pm

You can do it for $50 go to the Sec of State web site fill the forms out print and send in nothing to it. I did mine couple mts ago. Need any help on the forms shoot me a 3 at my email rickdaughtry@yahoo.com

Du_timberone · Postby **Du_timberone** » Mon Oct 22, 2007 4:29 pm

LLC are simple to establish. You draw up a document, which you can find a sample from the web; apply for an EIN number with the respective state, and start filing tax returns. The partners will recieve K-1's which is just a summary of the loss/gain in the LLC for the year. This loss/gain is taxed at your personal tax rate on your 1040.

From a tax advantage it just allows you to use business expense to reduce your taxable income (depreciation expense, etc.).

From a legal perspective it allows some room between you and the Company; however, you are still the member of the Company. What I mean by this is that you are liable for the actions of the Company.

deadeye redeye · Postby **deadeye redeye** » Mon Oct 22, 2007 5:16 pm

The only thing I would add is that you set up a separate bank account and only write checks for your business out of it. If you have a CPA, they should have advised you to do that. If you are thinking of doing this solo, its not too hard but may not be worth the effort if you don't know what all you can deduct. Also, if you are flying solo, your deductions I think are limited to your capital balance so you have to be a little careful. Don't set something up yourself with a small amount of capital and start showing a bunch of expenses and not much revenue. The IRS might flag that for audit.

alduckhu · Postby **alduckhu** » Mon Oct 22, 2007 5:25 pm

[/quote]

LLC are simple to establish. You draw up a document, which you can find a sample from the web; apply for an EIN number with the respective state, and start filing tax returns. The partners will recieve K-1's which is just a summary of the loss/gain in the LLC for the year. This loss/gain is taxed at your personal tax rate on your 1040.

From a tax advantage it just allows you to use business expense to reduce your taxable income (depreciation expense, etc.).

From a legal perspective it allows some room between you and the Company; however, you are still the member of the Company. What I mean by this is that you are liable for the actions of the Company.
[quote]
LLC is the way to go

jbs38654 · Postby **jbs38654** » Mon Oct 22, 2007 7:07 pm

LLC is fairly easy .....for every dollar you make you pay uncle sam $0.40
but at the end (if you sell it) you dont have to pay corp taxes

Lazy Drake · Postby **Lazy Drake** » Mon Oct 22, 2007 7:50 pm

I am not familiar with MS LLC, but in TN you pay an annual filing fee greater of 300 total or 50 per member every year and you are subject to FE tax.
An LLC has the protection of a corporation and the tax savings of a partnership I would see a lawyer or cpa to get you setup.

Gumbo · Postby **Gumbo** » Tue Oct 23, 2007 8:43 am

i was thinking of setting up one because I carry an umbrella liability insurance policy, and that requires me to insure all my vehicles, duck boats, john boats, and 4 wheelers to the max liability limits. I was wondering if i created an LLC and sold my duckboats and 4wheelers to the LLC I could just carry the replacement insurance and they techinally wouldn,t belong to me anymore, just to the LLC. this should help reduce the cost i pay for my personal umbrella policy.
Just curious, would it be hard for an LLC to get insurance policies on vehicles?
Also, this LLC would really never have any taxes due because it wouldn't have any income....would this be a problem?

MemphisStockBroker · Postby **MemphisStockBroker** » Tue Oct 23, 2007 12:37 pm

Gumbo wrote:i was thinking of setting up one because I carry an umbrella liability insurance policy, and that requires me to insure all my vehicles, duck boats, john boats, and 4 wheelers to the max liability limits. I was wondering if i created an LLC and sold my duckboats and 4wheelers to the LLC I could just carry the replacement insurance and they techinally wouldn,t belong to me anymore, just to the LLC. this should help reduce the cost i pay for my personal umbrella policy.
Just curious, would it be hard for an LLC to get insurance policies on vehicles?
Also, this LLC would really never have any taxes due because it wouldn't have any income....would this be a problem?

What business venture would your LLC be in ? And what business reason would your LLC have to own a boat and 4-wheeler ?

DuckyDan · Postby **DuckyDan** » Tue Oct 23, 2007 10:10 pm

You can dodge some tax burden if you set up an LLC. This allows you to expense some items that are not deductible under your personal tax return. As for what type of expenses your business has, it may not make any difference. If you go this route, you need to talk with your accountant and file for an "S Election" so you will be taxed as an S-Corp. If you do this, the income that flows through from the LLC to your personal tax return will be taxed at your personal income tax level rather than the corporate level.

LLC with an S-Election is the way to go. Talk with your accountant.

Advice on a L.L.C.

Advice on a L.L.C.

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