Setting up an LLC

[Restomage]

I'm in the process of setting up my LLC, and I was wondering if there is any advantage of setting up my LLC on a site such as Legal Zoom as opposed to applying directly on my state's website.

In addition, do I need to register my business as well with my city? And how do I receive my Tax ID #? Thanks!

 

[KmH]

The set up requirements for an LLC vary by state so even if you use Legal Zoom be sure you meet your states requirements.
Why do you want to be an LLC?
You get your Tax ID from the IRS. How to get a business tax ID - Bing

Yes, you will want to register the change in your business type with your city, your state, and the feds because with an LLC taxes, tax reporting, and tax record keeping requirements will differ from those for your previous business type, presumably a sole proprietorship.

If you haven't already, consult with your attorney and your accountant on if and how best to organize and set up your LLC.

Frankly, if you are the business and you have no partners or employees you will gain limited business benefits by making your business an LLC compared to the increase in record keeping and reporting you will be required to do as an LLC.

 

[astroNikon]

^^see above :thumbup:

The one main benefit LegalZoom has is that someone is charging you to do stuff that you can do yourself, if you know how.
And you can always consult an accountant one hour of their time to get the same, if not better result.
You have to check with your state for specifics anyways, best to pay someone local that knows how.

As to your city, you also have to be aware of zoning ordinances if you plan this on being a home type business that may create alot of foot traffic (one of the main problems from a home business .. though photography studio foot traffic really isn't a problem versus if someone is selling camera equipment from their basement in which you could get multiple cars and various attired ppl all the time - police first think there's drug trafficking going on).

 

[TinySquid]

Frankly, if you are the business and you have no partners or employees you will gain limited business benefits by making your business an LLC compared to the increase in record keeping and reporting you will be required to do as an LLC.

You consider protection of your personal assets "limited benefits"? As I recall, while there is precedent for piercing the corporate veil of a single member LLC in cases of business generated debt (the particular example that comes to mind involved shady real estate dealings, IIRC), it's very unlikely that a court would do the same in cases where the company is sued due to, say, a drunk guy at a wedding grabbing one of your spare light stands and smashing some other guest's eyes out with it. That is, of course, assuming that rigorous separation of assets and accounts is held to (which, really, you should be doing regardless of whether you're a single member LLC or a sole proprietor).*

It's not like he's asking about setting up a C-Corp...


*I am not a lawyer and this post should not be construed as legal advice

 

[astroNikon]

LLCs I think were originally designed for law firms where there are multiple owners. Thus when there were any issues of management of said law firm, the LLC would be dissolved, all dependent of the guidelines/dissolution specifics in the Business Operating Agreement.

A single ownership LLC can be sued as a DBA if the sueing organization pushes it. But, check with your lawyer for specifics. I'm not a lawyer and thus do not give sound lawyer business type advice. And I haven't been to a Holiday Inn recently either so take that with a grain of salt.

^^ but as mentioned keep vigorous guidelines of your personal assets and business assets separate.
also all the business insurance stuff that's needed just in case some drunk grabs your light stand and thinks he's Zorro !!