LLC or no LLC

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Jan 9, 2009 7:41 pm

Going indy and need help uderstanding a few things.  Does the bd pay you direct and you move the money to the LLC? Not sure how that works.  Any help would be great thanks.  Also, how are taxes treated for the LLC?  Do you pay yourself a salary?  How is the 7% social securtity tax.  Thank You

Jan 10, 2009 1:35 pm

Depends on the state–mostly an LLC gives limited protection to you the FA if you should lose your butt–protects personal assets.  But if you are working as a sole owner–then your LLC is taxed as such.  All the money in your LLC is yours–you do have to pay quarterly estimated tax–Jan 15th for 4th quarter…and yes you have to pay self employment tax as an LLC.  If there are more than one owner of the LLC you have to treat it like a partnership.

I would recommend you seek the advice of good CPA the first year and set up your LLC through an attorney.  You also have to file an incorportion with your state.  Select a name DBA--go from there.  I have my own LLC DBA.  Thinking about changing my name to "Losing My Butt, LLC" just kidding---down but not out!  Good luck and enjoy the Indy Life!
Jan 10, 2009 4:27 pm

Lots of threads on this subject. The LLC is for protection, not taxation.  If you are going from W-2 to Schedule C, I bet you are overwhelmed.