Looking to start an LLC to have the company pay the LLC and I withdraw from the LLC.
that's exactly what you do in a self employment situation. my S corp is the exact same way
I bet you didn't start the LLC and then "withdraw" from it. An LLC operates through its member(s). If he "withdraws" from the LLC then the LLC's existence would cease because the LLC would be without members.
I agree that an LLC can be used for a legitimate business purpose when a person wants to provide contract labor or self-employ. However, I would be very weary of starting an LLC to do work for a company, having the company pay the LLC for the work that I did, and then withdrawing from the same LLC.
If the goal of the LLC was to provide limited liability (along with other taxation concerns unrelated to the LLC's veil of limited liability), then that goal would collapse when the sole member withdrew. The LLC would be incapable of providing him with limited liability because he would no longer be a member. That's what I thought was kinda silly/illogical about this business arrangement. If you want to go down this path why would you then "withdraw" from the LLC?
This post was edited on 10/7 at 9:05 pm