Starting a LLC in Missouri, now what?

[Emsterdad]

Hello IRuleYouHard. I know that you can set up a LLC on your own (depending on State diff rules and costs apply, google!).

There are also services that are $200-$500 that will file for you. You can just go online, file and pay with credit card. ( https://www.a1acorporateservices.net , is one of the better as far as i could tell. NO affiliation to me, just advice)

I preferred to use a IRL attorny to set mine up. Primarily becase he gave me a good price (just $200 over online) and the fact that i like the idea of having a Lawyer/attorney anyway. He is also hooking me up with a good CPA close to home.

The only thing you need to form a LLC is the Filing fee ($100+ depending on state) and the papers. You have to be a permanent resident (i think).

I hope it helps.

GREAT info on the invoicing part IGAS! I assume that if i take my LLC papers to my local bank they can set me up with a corp account jippedy-quick?

[IRuleYouHard]

OK my second question would have to be. Once I form my LLC. How do I start getting credit under my LLC instead of my personal credit? I am looking to buy a rental house close to campus that should net me around $200 a month. Is it even possible to put that under my LLC?
What types of benifits are there for doing it under my LLC instead of myself?

[Emsterdad]

Getting credit under your LLC (as far as i know) requires you to have a corporate account - and be the owner/president of your company (the one who started it/signs for it). You can get such an account at pretty much any bank, the catch is that you have to have an influx of money or money in the bank. I know that here in MO, a platinum business card ($50k limit) takes $25K in the bank / about $10k monthly pretax influx.

The only "perc" of leasing/paying for any kind of realeaste through your LLC that I know of is if you have taxeable income in the company, and can write off the living space as office/work space.

If you can do that you have the possibility of getting a tax-break equal to the amount of cost that the office takes up.

I plan to write off 50% of my loft (approx. $600/month) as office space since i work from home.

Other good write-offs are phone/internet/cabrides/dinners/car-expenses as you can representate and write up those expenses (to a degree) as being business-expenses.

Keep in mind that to be able to do write-offs you must have a influx of cash.

(all this is info that i have recieved, i do NOT guarantee the corectness/quality of this information.)

Hope that answers your question.

[Emsterdad]

Cool. Thanks for the advice, i allready use Commerce and think ill talk to them abt LLC account.

Where in MO you live? any good live-games going?

[BradleyT]

[ QUOTE ]
Ok. But basically (from what i have figured) all i need to have is:

1. A registered LLC with Tax License
2. A Bank account (take all my papers and walk to a bank?)
3. Quickbooks 2007 (to create nice looking invoices, and send out to customers).
4. Wait for the money to reach my account

Correct, or am I missing something? Is it this easy to start a LLC and be up and running?

Thanks for all the help!

[/ QUOTE ]

Here's what I did to form my LLC in Wisconsin.

Found my states web page to register an LLC. I believe it was on my state's treasury page.
Searched to make sure my company name wasn't being used.
Filled in a web form with proposed company name/address and my name/address.
Paid $115.
In 2 business days my application was accepted and I was now the owner of a business in Wisconsin.
I then called the IRS to apply for an EIN. At the end of the 10 minute phone call I had an EIN.
I took my EIN and Articles of Incorporation to my bank and opened a business account.


Yes it's really that easy.

[Alltimed]

[ QUOTE ]
Cool. Thanks for the advice, i allready use Commerce and think ill talk to them abt LLC account.

Where in MO you live? any good live-games going?

[/ QUOTE ]

I live in Springfield. I don't really do the live games as my recreation time is in short supply these days.

You will need to file for an EIN (Employer Identification Number) and take that paperwork to the bank in order to setup your LLC bank account. Once you have that number you can start to apply for credit with it, instead of your SSN.

[IRuleYouHard]

Someone care to go into more detail about what happens when tax time comes? What special do you do to file your LLC's taxes?

[BradleyT]

For single person LLC's they have pass-through taxation. That means all of the company income passes on to you as an individual.

For example say my company makes $250,000 in sales this year. That's $250,000 I have to report on my personal income taxes. However I get to use any deductions (cost of goods, shipping costs, office supplies, rent, etc..) that a business would deduct. So let's say I have $100,000 in deductions for a business profit of $150,000. I personally have to pay taxes on $150,000 whether that money is in my business account or I paid it to myself.

You will most likely have to file quarterly estimated taxes which is basically paying your appropriate taxes for what your business earned in that quarter.



You should get tax forms and rules in the mail from the IRS and your state when you form your LLC and apply for your EIN.

[Emsterdad]

Thanks a S**tload to all who have answered! I am a somewhat experienced Project manager/Journalist/Editor/Programmer but didnt know sqat about starting my own company in the US. Now however i feel pretty well informed!

If anyone wants to ask questions in the future, ill be more than happy to repond once i got my LLC up and running!!

And if anyone in the Springfield - MO, area wants to play some cards or take a drink.. well im in!

Holla! (had to)

[Emsterdad]

Allmost forgot.

Hey Bradley, do you (or anyone else) know of any good resources for info on what i can deduct? (percentage of home as business space, dinners, car, Phone, Internet etc..)

And also, what is the tax percentage on pass through income?

Thx in advance!