LLC & TAxes

yourbriefcasedi

New Member
Please excuse me on if this sounds incoherent. I am in the process of deciding what to do with taxes.

I found out the costs for NY but here are some concerns:

1 - If I do sign up for an LLC, and don't make any money this year how does it effect my taxes
2 - should I still apply for a Tax ID if I do any business.

My goal is to save money then have an LLC after. I rather save since it is aobut 500 dollars to obtain one. I know there is SO much information out there I just want a basic summary of what to do.

If I am repeating anything I apologize

Vicky
 

Rebecka Melson

New Member
You can start your business as a sole proprietor and save the hassle of forming an LLC. If you are a single member LLC your taxes are filed the same anyway. You may still want to register your business name with your state to avoid someone else getting their hands on it.

You can register for a tax id number as a sole proprietor. I would recommend this to avoid giving out your SSN.

Here are the first steps I would recommend in setting up your business:

1. Register your business name with the state. Each state calls it something different, it's usually a "Business Name Reservation", "Fictitious Name Reservation", "Doing Business As" or something like that.

2. Register for an EIN under your business name.

3. Open a business checking account in the business name using the EIN.

Whether you are a sole-p or any other business it is important to keep all business income/expenses seperate and operate as a legal business.

For tax purposes, you will file whether you made an income or not. I would use your start date as the date your registered your name, or if you choose to use your individual name, the date you opened your business checking account.
 
N

NClifton

Guest
Thanks rebecka. Im new to the VA world but you have given out so much good info that i can't wait to put everything into practice
 

Kathya

New Member
You can start your business as a sole proprietor and save the hassle of forming an LLC. If you are a single member LLC your taxes are filed the same anyway. You may still want to register your business name with your state to avoid someone else getting their hands on it.

You can register for a tax id number as a sole proprietor. I would recommend this to avoid giving out your SSN.

Here are the first steps I would recommend in setting up your business:

1. Register your business name with the state. Each state calls it something different, it's usually a "Business Name Reservation", "Fictitious Name Reservation", "Doing Business As" or something like that.

2. Register for an EIN under your business name.

3. Open a business checking account in the business name using the EIN.

Whether you are a sole-p or any other business it is important to keep all business income/expenses seperate and operate as a legal business.

For tax purposes, you will file whether you made an income or not. I would use your start date as the date your registered your name, or if you choose to use your individual name, the date you opened your business checking account.

Okay, Rebecka--Tess has hailed you a rockstar. Since you're knowledgeable in this area, could you tell me what the advantages/disadvantages are of signing up for a sole proprietorship vs. an LLC are? I'm right on the cusp of registering a company name and so many people are telling me to do an LLC right off the bat to avoid 'upgrading' to an LLC. I am ignorant about licenses and would love to learn.

Thanks,

Kathya
Seattle, WA
 

Office Goddess

New Member
I'd start by looking at the LLC basics brochure on this forum, then search for threads that discuss this subject. There's lots here!
 
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