help with starting llc

[master08]

How are you,

I want to open an llc for my business on a side, and I do work full time. i am just wondering about charges that I am looking for and taxes complications that I can have.

The only reason I need to open a business so I can receive money transactions from over seas in amounts more than 5k. I will be providing services for some company from over seas. So I will not have any income per say, only some commissions.

Can some one tell me:

What will I have to report at the end of the year for that business ?
Also can I write stuff off ?
Also if constantly from year to year I will only show that its not profitably what then ? is it bad ?

Also where can I go that I can just register the business and get my tax id online.

Thank you for your help in advance.

[Karbonize]

Just go open a Paypal account and get verified, doesn't take long and I did it at age 16. If you go through the IRS, etc you're going to end up losing some money.

[CIsaac]

Here's 2 sites that will help you:
Mass.Gov
Internal Revenue Service

You have to register your business with the state of Mass (since you are in boston) and you can apply for a tax id number online.

The questions you asked are tax-related questions and you need to consult with an accountant (maybe there's one on here to help you).

If you are stuck or don't understand, you can go to my website (my business helps with these services) and leave a contact card on my contact link. I can help guide you. If you simply don't have the time because you work, we can offer you services as well. I also have accountants that could answer questions for you by way of a one-on-one consultation (for a fee).

Good luck!

-Cheryl Isaac-
IBS - Isaac Business Services

[mattSantill]

The business tax ID number or EIN can be attained at Internal Revenue Service

You will need this along with your LLC articles of organization in order to open a business checking account.

LLC's differ in each state.... some states charge an annual fee some will not charge. I know in Ohio there isn't an annual fee for an LLC where as Florida the fee is generally $50. Some states such as California will hit you with an $800 filing fee every year.

When I registered an LLC in Ohio the process could not be finished online... I had to mail in the paperwork and wait for a response..... so if the paperwork is not filled out correctly this can prolong the opening date of your business. However, some states like Florida the entire process can be done online and you know within 24 hours if the registration was successful.

If you will sell products within your state a vendors sales tax license will most likely be required. If you are doing business overseas there may be other fees associated with the area in which you are doing business. For more information on taxes look up your states department of taxation office.

Goodluck

[JLeezer]

i am just wondering about charges that I am looking for and taxes complications that I can have.

As previously stated, you will have filing fees with your state. The IRS provides EINs (employer identification numbers) for free. However, the tax implications of having an LLC can be significant, depending on how everything is handled and how much you make in your full-time job.

The only reason I need to open a business so I can receive money transactions from over seas in amounts more than 5k. I will be providing services for some company from over seas. So I will not have any income per say, only some commissions.

Sounds rather fishy to me. I'm not sure of any legal reason why you could not receive more than $5,000 without forming an LLC.

What will I have to report at the end of the year for that business ? Also can I write stuff off ?

At a minimum, you will have to file a return with the IRS for the LLC. You may also be required to file a return with your state, depending on how your state's tax code is written. Either way, you will be required to provide the revenue for the LLC (that is, the gross amount of money brought in through sales, commissions, fees, etc) for the year. You will also be able to deduct various expenses, as long as they are reasonable and necessary. Reasonable and necessary is KEY here!

Also if constantly from year to year I will only show that its not profitably what then ? is it bad ?

Yes, this is bad. If you go too long without a profit, the IRS is likely to consider your business to be a hobby instead. In which case, they may re-evaluate all of your business deductions and require you to pay back taxes on all of them.

Hope this helped a bit.

[GuyBBY]

This is all great stuff. Master08, I got your email and we are going to have a Boston YE mtg very soon. I suggest you could bring the appropriate paperwork, questions and concerns to this meeting and receive halp from everyone in the group who own or have owned and started LLCs in MA and other states.

Best

Guy