LLC questions

<p>Hi everyone. So, I have decided to make my relationship with photography official and start my own business. I have pretty much everything figured out with LLC, but maybe someone here can help me with the following questions. <br>

For California based photographers: what registered agent and bank do you recommend dealing with?<br />Which tax type to choose: LLC as a disregarded entity or as S corporation?<br />Is my SSN enough or i need an EIN for my tax paperwork? <br />And finally, how long does it usually take to register an LLC (from the time I send my LLC-1 paperwork to sending my first invoice to the client)?<br>

Thank you for any help! I am close to pulling out my hair :)</p>

<p>Sophia</p>

<p>All great questions and ones that a certified accountant can help you with, in fact I would recommend one.<br>

I am not in CA but I do work for myself in MI and having an accountant set up the LLC "S" has been, actually a wonderful experience, except of course those nasty quarterly payments. I don't believe you can make tax payments against your SSN, as for the time it takes, I am sure the state will expedite your paper, after all you will be contributing.<br>

You just have to pick a company name which is not already registered. <br>

A CPA shouldn't be too expensive and worth the money in the long run. Don't forget about limited liability insurance and possibly an umbrella policy and some companies require you carry workman's compensation, even if you are the sole proprietor.</p>

<p>Actually, if you want to do things right, you need a lawyer to set up the LLC and a CPA to set up the "S" election, which is not a separate corporate entity but merely a tax election within the context of your LLC entity. You will need a separate TIN (taxpayer identification number) for the LLC because in the eyes of the law, it is a separate legal entity. Your CPA can get the state and federal TIN for your LLC afterr your lawyer prepares and files the paperwork to establish the LLC. And Mark is correct about all the insurance coverages you need to investigate. A good business insurance broker can help you with that. </p>

<p>Bob is offering some very good advice - do it right; hire professionals who are familiar with your locale's requirements. Develop good working relationships with them for you will most certainly need their services in the future.</p>

<p>Not be argumentative but a lawyer really isn't necessary these days to form an LLC whereby an accountant would be advised. <br>

The attached is from NOLO "Law for All" who provides a lawyer directory and basic legal direction.<br>

<em><strong>Do I need a lawyer to form an LLC?</strong></em><br>

<em>No. All states allow business owners to form their own LLC by filing articles of organization. In most states, the information you must provide for the articles of organization is very basic -- typically, you have to supply the name of the LLC, the location of its principal office, the names and addresses of the LLC's owners, and the name and address of the LLC's registered agent (a person or company that agrees to accept legal papers on behalf of the LLC).</em><br>

<em>Now that most states provide downloadable fill-in-the-blank forms and instructions, the process is even easier. And LLC filing offices are becoming more accustomed to dealing directly with business owners; they often allow business owners to email questions to them directly.</em><br>

<em>Of course, if you're trying to decide whether the LLC is the right structure for your business, you may want to consult an expert (Accountant). You may also want an expert to review your operating agreement or set up your bookkeeping and accounting systems.</em><br>

A good CPA will provide more assistance and will have a far deeper understanding of how to set up an LLC than legal council in my humble opinion. </p>

<p>Mark is correct that you may not need a lawyer to fill out and file the LLC charter (articles of organization or incorporation) with the Secretary of State. But that is not all you need.<br>

After you file the charter, how are you going to come up with your bylaws, operating agreement, and so forth? For those things you should consult with a lawyer who has experience with formation of business entities. And it may also be helpful to have a lawyer explain how you have to behave in order to keep your LLC entity legally valid and what you must do to maintain the limited liability protections it offers to the owner(s). <br>

Unless you can find, read, and understand a couple hundred pages of corporate formation and governance statutes without any legal assistance, you need to talk to the business lawyer. <br>

CPAs deal with accounting and tax issues. These are totally separate issues from the setting up of the legal structure of a corporation in compliance with state law. <br>

It is unlawful in the USA for a CPA to give legal advice (outside of tax law) unless the CPA is also a licensed attorney. Some tax attorneys are also CPAs. <br>

Use "NOLO" and other pre-printed legal forms without specific legal advice at your own peril. I would be happy to tell you about the two clients I had who were unintentionally left out of their Dad's Will. He used a pre-printed office supply store Will simply because he hated lawyers, and he unintentionally gave his kids' entire inheritance to his second wife's distant cousins that he had never even met. All because he did not want to see a lawyer to get a Will written, which at the time would have cost him no more than $250. </p>