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Looking for accounting advice
Posted on 1/22/20 at 12:38 am
Posted on 1/22/20 at 12:38 am
Daughter and I are starting a business and looking for the best way to set it up (financially, legally, taxes...etc.)
6
Posted on 1/22/20 at 7:22 am to oneg8rh8r
The biggest thing it set up a separate bank account and only deposit income and pay expenses from that account. You will probably want some accounting software such as QuickBooks as well. The more organized your books are the easier the tax returns are.
You could incorporate as an LLC which is fairly simple. You will be a partnership by default under the IRS rules. You can elect S corp status but that comes with it's own separate set of headaches that may not be worth it in the early years.
Your share of the income and loss will flow through to your personal tax return.
There may also be additional complications at the state level depending on where you live and what states you are doing business.
We will need more information to give better advice.
You could incorporate as an LLC which is fairly simple. You will be a partnership by default under the IRS rules. You can elect S corp status but that comes with it's own separate set of headaches that may not be worth it in the early years.
Your share of the income and loss will flow through to your personal tax return.
There may also be additional complications at the state level depending on where you live and what states you are doing business.
We will need more information to give better advice.
Posted on 1/22/20 at 10:08 am to oneg8rh8r
You need a lawyer and an accountant. Start with the lawyer. As previously stated, your accountant will tell you which software to use (most likely Quickbooks) for them to do your taxes and accounting.
Posted on 1/22/20 at 10:49 am to oneg8rh8r
Are you in Washington? I'm not sure how the LLC laws are up there, so you will want to speak with someone who is familiar with them.
In Louisiana, LLCs are cheap, so the typical pattern is to :
1) Form the LLC
2) Get an EIN from the IRS
3) Have the LLC taxed as a partnership (since you have two members)
4) Get a bank account in the LLC's name
5) Start operating and use a program like Quickbooks or Xero to track your finances.
In Louisiana, LLCs are cheap, so the typical pattern is to :
1) Form the LLC
2) Get an EIN from the IRS
3) Have the LLC taxed as a partnership (since you have two members)
4) Get a bank account in the LLC's name
5) Start operating and use a program like Quickbooks or Xero to track your finances.
Posted on 1/22/20 at 11:07 am to oneg8rh8r
My wife has a sole proprietorship and uses Wave as her book keeping software. Highly recommended.
Posted on 1/22/20 at 11:30 pm to oneg8rh8r
Would probably help to know what kind of business or at least how big it could potentially be. Are you talking lemonade stand or a manufacturing biz that could be scaled?
Definitely talk to attorney first as others have stated.
Two of my companies are LLC partnerships. We have one minority partner in each. Because it’s a partnership the IRS dictates they have to be paid via guaranteed payments and they have to make quarterly estimated tax payments, etc. It affects 401k as well since they’re not supposed to be w-2 employees with payroll checks. It’s more cumbersome than our primary company that is LLC S-Corp. They each have their advantages and disadvantages. Attorney in your home state can help guide you.
Good luck! Will encourage my kids to start a business one day when they’re ready.
Definitely talk to attorney first as others have stated.
Two of my companies are LLC partnerships. We have one minority partner in each. Because it’s a partnership the IRS dictates they have to be paid via guaranteed payments and they have to make quarterly estimated tax payments, etc. It affects 401k as well since they’re not supposed to be w-2 employees with payroll checks. It’s more cumbersome than our primary company that is LLC S-Corp. They each have their advantages and disadvantages. Attorney in your home state can help guide you.
Good luck! Will encourage my kids to start a business one day when they’re ready.
Posted on 1/24/20 at 9:37 am to oneg8rh8r
Do not hire a lawyer, but your CPA can advise about structure. You can open your own LLC, S-Corp through your Dept. Of State for less than $100.00. You don’t need to pay a lawyer $400/hr to do something that you can do online in 15 min. You will get a EIN # from the IRS. Get a bank account and Quickbooks Professional and you are good to go.
If you are putting up all the money, you should think about keeping most of the profits.
If you are putting up all the money, you should think about keeping most of the profits.
Posted on 1/24/20 at 12:04 pm to Doctor Strangelove
quote:
Do not hire a lawyer
You can set up an LLC by yourself but you will be better served in the long run spending the time and money talking to an attorney.
Always suggest that any business needs a good CPA and a good attorney.
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