LLC FAQ

Have a question about LLCs, incorporating, taxes, or related topics…but couldn’t find the answer on this site?

What Other Visitors Have Asked

Click below to see questions from other visitors to this page…

Can I use a P.O. box as the primary address for my LLC?
Can I use a P.O. box as the primary address for my LLC? I am looking to incorporate in Pennsylvania. Answer Most states require a street address …

How does one add a member to an existing single-member LLC?
How does one add a member to an existing single-member LLC? Can both members then be managing members? If necessary, how is this designated? Answer …

can I insure multiple LLC’s under the same general liability policy.
I have multiple rental properties I want to put on one insurance policy. Can I do that? Answer Ask your insurance agent about this one. I’m not …

Spouse as a member
If an LLC protects a person’s personal assets from liability does a spouse have to be listed as a member to also be protected even if not involved in …

Transfering ownership of an llc
How would I go about transferring ownership of an llc business? Answer You will want to see an attorney to properly paper the transaction. However, …

how do i get off an llc
My partner and I split up in 2006. My name was taken off the LLC bank account, but today I looked up the corporation and it still has me as a member. …

Managing Member vs Member
In a LLC structure, is there a difference of being called or titled a Managing Member vs being titled or called Member? Answer All Managing Members …

Best state to form a single member LLC?
What state would be the best to form a single member LLC for an internet company? Answer If you are forming a single member LLC to be taxed as …

What is the best way to start financing real estate?
When would be the best time to form an LLC, after first property? Should I purchase with personal credit then quitclaim to the LLC to start out? Does it …

Self Employment Tax
I have a few questions. It is to my understanding that a LLC owner must pay self employment tax. If I file a form with the IRS to treat me as a S-corp, …

If I form individual LLC’s for real estate, What is the big company?
If I was to form an individual LLC for each house I buy, how does it work in the big picture. Is there one company above all the individual LLC’s? …

Independent sales rep should they incorporate ?
Independent sales rep should they incorporate ? my wife is a MaryKay consultant and i an independent sales rep for a manufacturing company.Should we incorporate …

Capital Contributions
Would it be sufficient to write “capital contribution” or “start up” on the memo line of your check from your personal account in terms of documentation …

Business License
Since I’m going to be opening a home based business, is forming my LLC the same as having my business license or is that something separate I also have …

writing cost estimates and contracts from an LLC
On the subject of limiting liability to the LLC, I understand that contracts need to by signed by the LLC and not a person (i.e., it is signed by a member …

document to remove a name
What document do I use to legally remove my name from an LLC and its liabilities? Answer When you say “remove my name” from a limited liability …

LLC Structure
Trying to figure out whats best: DBA or LLC. Basically, I want to protect our home first and foremost. Been married 6 months and the home is in my wifes …

Can a company LLC that owns real estate, as well as a business, also be the same LLC for a self-directed IRA?
I am interested in putting my assets–thus far two parcels of land–into an LLC as a holding company. I would also like to open my own advertising business, …

forming an out of state llc
I wanted to form a llc in a state with a cheaper filing fee–I’m in Pennsylvania. Is this legal, and will I have a problem operating in Pennsylvania if …

H1B forming a LLC
Hi, I am in Maryland on H1B. I work full-time for a software company. I am planning on starting my own LLC which conducts R&D and software development …

How does an LLC protect me from lawsuits?
How does an LLC protect me from lawsuits? Answer There are several articles on this site on the concept of limited liability. What an LLC does …

No operating agreement signed yet after 6 months?
Started an LLC just over 6 months ago. My husband and myself along with another husband and wife. Having disagreements on the operating agreement from …

What is the difference between members vs managers
When choosing who should run my llc members or managers what are the differences Answer by Simon A member is the owner of the LLC. Think of …

personal liability of llc going under
What are my legal rights if my business is failing and I owe advertising expenses? Can they attack my personal credit and can I be held liable with no …

operating as an llc in another state
If I formed my llc in a state but have chosen to do most of my business in another state, do I file all over again in the new state? Answer If …

Single Member with Multiple LLC’s can you use one check book
We file as sole Prop. on our taxes. We have multiple LLC’s and use only one checkbook. Do we need to set up other checkbooks for each LLC? Answer …

Can one member also manage the LLC to the exclusion of the other members?
Would like to set up an LLC where I also retain final decision making on all issues. Is this possible. If so, is it accomplished by designating myself …

My K1 shows a net loss of $1000, but it didn’t appear to affect my total taxes.
I received a K1 for our new LLC. It showed a loss of $1000, but when I entered the information into TurboTax, it didn’t make a difference on my overall …

Can an Illinois LLC be formed to hold property located in New Jersey?
Can an Illinois LLC be formed with members from both Illinois and another state for the purpose of owning real estate located in New Jersey, or does the …

Double Taxation??
Why do you say that corporations have double taxation? A single member LLC has to pay Social Security tax except for income tax, isn’t THAT double taxation? …

Next step after filing
Once I have filed my Articles of Organization and obtained my EIN , what is the next step? Do I need to acquire a separate business license from the …

Removing an LLC member
My question is this, me and my wife are 50/50 partnership of our llc we do file a 1065 and k-1. My wife has a full time job with another company and …

Personal judgements and assets in an LLC
If I have an LLC, am sued personally, can they come after assets in my LLC to satisfy a personal judgment? Thank you. Answer Not directly, but …

LLcs and divorce
My husband and I are business partners ,and we also have some real estate .Our business is an S corporation ,but my husband insist on getting everything …

can a non-us person be a member of an LLC?
Can a non-us person be a member of an LLC? Answer Yes. Unlike S-corporations, LLCs can have non-US citizens as members. If you wish to have your …

Can I start a second LLC from the same home office I am running the first LLC from?
I already have an LLC that I am running from a home based office, with myself listed as registered agent at same address. Can I start a second LLC and …

Taxes on inactive LLC?
If an single member LLC is formed in Ohio, but does nothing within the first year besides set up bank accounts and other infrastructure activities, what …

When to start establishing business credit as an LLC?
I want to start purchasing residential rental property, when should start establishing business credit? Can I form an LLC and build credit before I even …

how do i pay an employe if i have an llc ?
hi im thinking of going llc i have a small concrete finishing business and i want to protect my assets im thinking of like a partnership type thing with …

Changing titles to an LLC
If we are changing from a standard business to an LLC do we need to change title to the LLC on a vehicle that has been previously depreciated out? …

LLC after business name?
1. Do I have to put LLC after my business name? 2. I am an artist, putting together a plan to open my own gallery. Is LLC the best option for me? The …

sell an llc
can I sell our LLC without an operating agreement we never did one (stupid yes) my partner is non responsive since we had a little tiff. I am the manager …

Can I get out of the LLC and leave my partners?
I believe I am listed as 50% owner in a business that is falling apart. We have nothing in writing except for our articles of incorporation that list …

How do I remove my name from a DBA partnership I have with another person?
I obtained a DBA with my brother in law to form a drywall business. I found out that he was doing some things that weren’t right by me(keeping funds …

Christmas meal/party deduction for small LLC?
We have a two member LLC. The second member is my wife. She’s a legit member (professional, with some part-time work contribution), but since it is a …

how to end an LLC ?
We recently started an LLC for our club, so as we could raise funds legally. turns out it is costing us more money and time to have the LLC and now …

convert sole proprietorship to llc
How do I convert a sole proprietorship with an ein # to a LLC with the same ein #? Answer When a sole proprietorship changes to a corporate or …

We have a sub-s corp and a dba each with it’s own Fein#
We have a sub-s corp and a dba, each with it’s own Fein#. We file one tax return under the sub-s corp name which includes all the activities of the dba. …

giving shares
My husband has formed an LLC in which he is ‘sole owner’. He wants to give me ’49’ shares of the 100 shares. We live in Ohio. Can we do this ourselves …

does a LLC have to carry insurance
Is a LLC required to carry liability insurance? Answer Usually not, though it’s a good idea to carry liability insurance to protect your business …

LLC operating without an Operating Agreement and Managing member controls everything
I was told it is illegal in the State of Missouri to operate an LLC without an Operating Agreement. Please enlighten me. An Operating Agreement was never …

LLC with S-Corp election payments
How do I as sole member of my LLC with the S-corp election pay myself? Do I need to set up a payroll and go through that process? Answer When …

What does an annual report for an LLC look like?
Do I really have to send in an annual report for my LLC if it hardly makes any money and is a small business? If so, what form does it need to take? Is …

Answers to visitors’ questions about how a small business owner pays him or herself
All though you are the sole member of an LLC, could you still possibly pay yourself as an employee? For instance, when you get Quickbooks, sign up for …

Questions About Personally Funding Your New LLC
You have to use your money to start your business. Is it wise to put your money in your business bank account when you first open it and then proceed to …

does incorporating my business protect it from divorce
If i incorporate my business and sell my tools to the incorporation does it protect it from divorce? Answer Probably not, though it depends by state. …

Forming LLc in Nevada w/ husband & wife as members
If forming an LLC in Nevada w/ husband & wife as members if we elect sub s – can IRS decide to treat as a single member LLC because we are married? …

Husband and Wife forming Real Estate Company
My Husband and I live in Texas and would like to form an LLC to be able to buy and rent homes and maybe commercial real estate in the future. What are …

Mailbox forwarding
If I am operating a home based business and use a mailbox forwarding service, can I use that address as my business address and registered agent address …

Specific purpose?
In Missouri, it asks for your “specific purpose” of doing business. If you put something, for example online selling, does that mean that in the future …

Communications from home
I plan on running a communications business from my home solely online. Would that require a business license from my municipality? Additionally, …

logos and LLC
Do you need to include LLC in your logo and advertisements as long as it is included in the legal name? Answer No. The letters “LLC” don’t need …

Could you please clarify business verses personal assets/debts with regard to liability, protection, and bankruptcy.
A couple questions: 1. An LLC protects your personal assets from business debts/lawsuits, etc; does it also protect your business assets from personal …

we have an llc with 1 ein and want to create a sister company
Do we need to create a new corporation? Do we need to create a new ein? we file as an s- corp and want to gain the benefit overall of the new company …

can an llc be sold?
Can an llc be sold? Answer Yes. A limited liability company absolutely can be sold. A member can sell his or her membership interest, or, …

For privacy, if I use a resident agent, when do I use their address vs. my own?
I have a question regarding Resident Agents and privacy. I run a home based business and would like more privacy. If I were to hire a resident agent, do …

depositing checks into LLC bank account
I assume I will occasionally get a check payment from a client made payable to my personal name instead of the LLC name. So, I plan to set up the LLC’s …

Create Umbrella LLC for 2 Sole Proprietorships
My wife and I currently each own a sole proprietorship business in Ohio. The 2 businesses do not sell related products or services. I would like to create …

Pro’s and con’s of multiple LLCs?
What are the pro’s and con’s of multiple LLCs? Answer Cons Let’s start with the cons first. The most obvious con of multiple LLCs is cost. …

Is transferring money from a business acct the same as writing a check?
I recently formed an LLC from a sole proprietorship. Knowing that I’ll have to be more diligent about separating funds, is transferring money from a business …

LLC based in NY, can I work in CT?
My LLC is based in New York. Will I be able to have clients in Connecticut? Answer A business can transact business anywhere in the country, regardless …

can you have a separate ein # for different dba’s under the same llc
Can you have a separate EIN # for different DBA’s under the same LLC? Answer No. You don’t want to (and are not allowed) to do that. A DBA …

what is the annual fee
Is the annual fee a flat rate or increase as capital increases? Answer Depends on which state you’re in. Some states have no annual fee, others …

using home address
When forming an LLC my home address was used as there was no office space as yet to list. Will this compromise the LLC and enable anyone to claim against …

founding from abroad
Hi! we want to found an LLC from Europe. Can we fill all the papers for founding ? How many papers we need to fill? I know we need an agent. How …

Your Questions Answered About Incorporation, LLCs and Business Entities

When filling out an Articles of Organization form, should I fill it out as Company XYZ, LLC doing business as Joe Smith Roofing or should I do the DBA separately? As a single member Nevada limited liability co is there a general rule of thumb of how much one ought to pay themself as owner? Do you have to put “LLC” at the end of your business name?
Want to operate your LLC under a different name? Been using a name for years and don’t want to have to change it just because you’ve formed an LLC? Find out how to use multiple names under one LLC.

Where should I incorporate my web-only business?
Does it make sense for a person running an internet-only online business living in a high tax state like California or New York to incorporate in Nevada or Wyoming?

What are the requirements for naming my LLC? Be sure that you pick a legal name for your LLC by following the tips in this article.

How do I pay myself as an LLC owner? If you’ve never been a business owner before, you are probably wondering how to get paid without a paycheck. This article will show you how.

Is a DBA the Same as an LLC or Corporation?

FAQ: I applied for a DBA (Doing Business As) from my state, isn’t that the same as incorporating as incorporating or forming an LLC?

Answer: No. A sole proprietor-which is what your business is until you incorporate-is still a sole proprietor after obtaining a DBA. A DBA allows you to do business as yourself, but under an assumed name, while incorporation actually creates an entire new entity. Read the rest of the article… I don’t plan on having employees, do I still need an EIN?

FAQ: Because my business is run solely by me from home, I don’t plan on having any employees. Why would I need an Employer Identification Number–EIN?

Answer: An Employer Identification Number is also important for businesses that don’t have employees. Your business will use its EIN for filing tax returns, opening business bank accounts, and applying for credit. Most incorporation companies and attorneys charge anywhere from $50-$125 to obtain an EIN for you. However, you can do it yourself by filling out a simple 1 page form. Read the rest of the article… What are “Members” and “Managers” of an LLC?

FAQ: Who are these “members” and “managers” that are part of my business’s LLC?

Answer: Members are simply the owners of an LLC. Managers run the day-to-day operations of the LLC. Members and managers can be the same or different people. Read more about LLC members and managers…

Aren’t LLCs are only for small companies that want to stay small?

FAQ: I plan on my start-up becoming a huge success and eventually going public. Is it true that LLCs can’t go public?

Answer: An LLC cannot, for various practical and legal reasons be traded publicly. This doesn’t mean, however, that an LLC isn’t the right choice for an entrepreneur. An LLC can easily be converted-with no tax consequences-to a C corporation when it is time to go public. Until then, the startup gets to have the pass-through taxation and simplified operation of an LLC. The limited liability company really is the best of all worlds when it comes to business entities. It takes the best of C corporations and partnerships and combines them into one simple package.

Related Questions

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