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What will I get when I create an LLC? Chicken-and-egg problem.
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I am a foreigner(never stepped on American soil either).
I do some business with some US companies and they send me form 1042s every year in March.
I looked at a form w-7 and, if I understand correctly, I can only apply for an ITIN when I'm filing tax returns.
From what I've heard, it can take up to 7 months to get an ITIN. Is there a deadline for when I can file tax returns given this 7-month delay?
If I register a single-owner LLC in the US, what can I show to the companies I work with to indicate that I have a US LLC? Will they also require the ITIN which I can only get when I want to file tax returns?
Top Comment: The tax forms you file for an LLC are completely different than a personal tax return. I assume you filed a W8 somewhere and have some kind of US source income withheld at 30% or whatever your tax treaty rate is? Filing a return with an ITIN could help. If you really want to bypass that look into setting up a partnership with a second 1% owner and you can just file as a W9 with no withholding. Much more complicated business tax return through, so it may not be worth it depending on the amount involved. I’d say minimum $3k to even be remotely worth it.
I see a lot of people start posts with 'I Started an LLC'
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Maybe I'm in the minority here, I'm just surprised that people don't say that they started a business. Instead it is that they formed and LLC. Maybe I'm being ridiculous but like when I bought a commercial property I told people I bought a building. I didn't say I formed and LLC and the LLC bought the building. When I tell people I own a business I don't say I formed and LLC that is treated as an S Corp, I just say I own a small business.
The reason I bring this up is I love the fact people are starting businesses(or want to start a business) and get why they'd want to set it up properly so they have questions and that is what Reddit is for but it seems to me that some people think an LLC has some magical powers. I guess I think people overthink it.
Maybe someone who is a better writer than I am with a better practical understanding than most could come up with someone related to this topic and it could be a pinned post or something. I'm far from an expert but remember my accountant pointing out to me that the main reason you get an S Corp(which was the more common thing to get when I started my first business) or an LLC is about liability. Sure, there are some tax strategies you can put in place(though I've always been told by my CPA that if I pay myself 60K/year and consistently have 60k of pass through income that could be a red flag. Though I admittedly take a more conservative approach rather than aggressive when it comes to taxation.
am I all wrong about this?
Top Comment: Your thoughts are on track. When I see someone say they "started a llc" I assume they really don't know what they are doing. I'll see tax questions like "I started a llc, what can I deduct?". Well, not a thing, because a llc itself is nothing for taxes. Did you start a business? What type of business?
Pros and cons of owning an LLC?
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Looking at starting an LLC and want to know if there is anything I should be aware of? I feel like it’s so easy or I am missing something? It would be a small business, no employees other than myself.
But I’m looking for pros/cons/advice etc. tips that may be less known to the general people within the business owning community.
Top Comment: An LLC serves a purpose, there is no reason to have one unless you need one. It basically just creates a taxable entity so you can keep your personal finances separate from the income of the LLC. They are very simple and there are no real "tips and tricks." I run an appliance repair business and the LLC protects me from losing my personal assets if there is a lawsuit against the LLC, like if a house burned down after I repaired a dryer. The LLC could lose everything, but I would only lose my business. I lose this protection if someone can prove that I did something illegal or intentionally caused the incident. You can buy anything reasonable and necessary for the LLC with tax free money, so that is a perk.
What is an LLC? Limited Liability Company?
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Been working on a new business for months and finally got the website and some initial clients lined up. exciting stuff.
One thing I'm stuck on is this LLC stuff. I keep seeing it mentioned for small businesses, but honestly, it's all going over my head. Is it like, extra paperwork or something?
ELI5 Version of LLC?
Basically, I just need a quick rundown of what an LLC is and if it's actually necessary for a solopreneur like me. Do I really need a lawyer or anything fancy?
Top Comment: Interested in how this is answered by Reddit. I've also been reading up on this and still feel like I don't understand LLCs fully.
How to start an LLC? Can Reddit guide me?
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Hey everyone,
I've been thinking about starting a small business and have heard that an LLC is a good way to protect my personal assets. I'm not sure where to start though.
Does anyone have any experience with setting up an LLC? What are the steps involved? Do I need to hire a lawyer or can I do it myself?
Top Comment: If you're asking about the easiest way, I think the simplest way is going to get these guys do it for you. I formed mine with them and they sent me my certificate of formation back in a few hours. Just told them the state i wanted to file in, the name of the LLC and paid. That's it. I also think the discount they're giving is one of the cheapest out of all the llc services. Like I just had to pay them a total of $39 from the discount I found on this page .
ELI5: What is an LLC? And why do people make a big deal about LLCs?
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I’m a drone pilot who just got his license (Part 107). I’ve done some shots and gigs for friends but as I am looking into possibly venturing out on my own as a business I keep getting told that it’d be good to be an LLC. Every time I look into it I just get inundated with technical terms. Just wanted someone to really simplify it for me so I can know where I stand. Thanks so much!
Top Comment: It’s a Limited Liability Corporation. There are many ways you can form a business. If you just do stuff as yourself, that’s a sole proprietorship. But you’re also personally liable for all business debts and other liabilities should something go wrong. In an LLC, your personal assets are shielded from the business. So even if the business gets sued into oblivion, you won’t lose everything you personally own.
How to live your life as a business/LLC.
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Any idea on how to start this or why it is a hot topic?
I keep hearing folks talk about living their life as a corp of some sort. Buying cars and houses and what not through llcs..... using business lines of credit. Things of that nature.
Top Comment: tax fraud
LLC in 2025 tips? Help.
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Just looking for any tips on setting up a very basic LLC mainly for tax and bookkeeping reasons. I'm doing remote side editing work from home in Arkansas. I'm a one man show. Do you really need a Registered agent service? I know I need an LLC ID and EIN. Any reputable LLC companies you recommend for us editors? Thanks for any links or information, I'm just getting this off the ground.
Top Comment: Is the LLC really necessary? Editing has a pretty low chance of liability issues. You can operate a sole proprietor and deduct business expenses the same as an LLC would but without having to register with the state. If you want a solo 401k you can get a Federal EIN for a sole proprietorship and still do that, but without the headache of an S Corp. S corp can be useful to avoid certain taxes (legally!) but it's more complex to set up and requires running your own payroll and filing annual tax returns. Far more work and usually only suggested by CPAs if your profit is 80-100k or more. If you do work as an editor for major broadcast stuff then all those production companies will require you to be an S corp (which is actually just an LLC with 'S election' tax status- do not open a 'corporation'!!) If you do open an LLC, the registered agent can be YOU and your address, that part is no big deal. It's just a legal necessity to have a place of record to receive important mail. Basically they want no excuses that you "didn't see the lawsuit letter" or government correspondence. So you either make yourself the registered agent and ensure you keep an eye on all business material coming your way or pay someone else to do it.
What is the easiest and cheapest way to form an LLC in New York without hiring a lawyer?
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Thanks!
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What are the common mistakes when newbies like me form an LLC?
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My wife and I are moving out of a 1BR condo we own and are getting it ready to rent out. We’ve been advised to form an LLC for the property. What are the common mistakes here?
Edit: state is Colorado
Edit 2: Ok lots of valuable insight here—thank you! I’m leaning towards not going the LLC route and instead getting an umbrella insurance policy and focusing on being good landlords. Doesn’t seem worth it for our little 1BR condo with a mortgage on it (in our names)
Top Comment: I have individual-member LLC in services cat registered. Now, we are two partners and would like to do business together. Can I change my LLC to multi-member LLC and put EIN there?