How set up llc for consulting business?

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My answer to How set up llc for consulting business?

Answer by Ken Larson:

Go to the Secretary of State web site for the state in which you reside and download the application for Articles of Incorporation for an LLC. Complete the application, attach the required fee and mail the form to the address indicated.

After receiving articles of incorporation, go to the IRS web site and register your business. You may wish to consider the benefits of Subchapter “S” (disregarded entity – in IRS parlance). This allows you to pass the revenue and expenses for your company through to your individual tax return and avoid paying taxes as a company.

An operating agreement is strongly recommended if you have more than one founder, to clarify the ownership %, as well as who can sign for the company, buying another owner out, what happens in the event of an owner death and other important matters.

Please see the “References” file in the “BOX” at the right margin of the site linked below for articles on the tax implications of LLC’s and a sample operating agreement. They are free downloads courtesy of:

SMALL BUSINESS FEDERAL GOVERNMENT CONTRACTING (SBFGC)

How set up llc for consulting business?

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About rosecoveredglasses

2 Tours in US Army Vietnam. Retired from 36 Years in the Defense Industrial Complex after working on 25 major weapons systems, many of which are in use today in the Middle East. Volunteer MicroMentor. I specialize in Small, Veteran-owned, Minority-Owned and Woman-Owned Businesses beginning work for the Federal Government. MicroMentor is a non-profit organization offering free assistance to small business in business planning, operations, marketing and other aspects of starting and successfully operating a small enterprise. You can set up a case with me at MicroMentor by going to: http://www.micromentor.org/ key words: "Federal Government Contracting"

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