Creating an LLC (1 Viewer)

[bigmarc27]

Any of you have experience here?

For liability reasons, does it help to use a PO Box instead of our home address?  I'm just trying to protect and separate our personal assets as best as possible. 

Thanks

 

[acarey50]

Have actually been looking at this recently but definitely consult an attorney in your area with experience, as there are differences by state, etc. Some reccomend registering in a state like Delaware that is known to be a but more business friendly, but then, assuming you are not from Delaware, you need to have a licensed agent there on your behalf, and likely still need to register as a foreign corporation in your home state (at least that is how it was for California), so you don;t really escape any of the fees in your home state, don't dodge the taxes and there is some question about how much, if any, additional protections there are if registered in another state.

If I recall correctly, at least in California, you had to register the LLC with a physical address, but check your states rules on this.

I've got a dinner tomorrow night with my potential partner in the venture we are looking at - depending on how that goes will determine if we pursue things further and I set up a meeting with a friend of mine that is an attorney that specializes in small businesses/entrepreneurs or if we decide to not take the possible venture to the next level.

 

[Joe T]

Any of you have experience here?

For liability reasons, does it help to use a PO Box instead of our home address?  I'm just trying to protect and separate our personal assets as best as possible. 

Thanks

I think you have to have a physical address.  ETA:  You can get a physical address at some of those UPS store places.  It's like a PO Box, but not a "PO Box."  It's a few dollars a month more expensive though.

And in my very limited one time opinion it helps to have at least 2 owners of the LLC.  If you have just one owner, well I don't think there is much protection of your separate assets.

Note:  I'm not an attorney, but have had an LLC set up once.  

 

[The Indestructible]

You should talk to an attorney in your state.  As noted, in some states, a PO box will not work and you need a physical address.  Your LLC's existence will be of public record, with the information that is publicly available varying by state.  So if you don't want your address to be publicly linked to your LLC, discuss that with your attorney.  This is one of the reasons why Delaware is preferred, as almost no useful information about an entity is publicly available.  With that having been said, the fact that somebody could see the address for an LLC is rarely going to be the primary factor in choosing which state to form your entity in.

An LLC can still provide liability protection when there is just one member.  Single-member LLCs are disregarded entities from a tax perspective, but as long as you maintain a separate legal existence for the entity, it will in most cases be tough for a court to allow someone to reach your assets by suing the LLC.  This means that you have to treat the LLC like an actual separate entity, so sign documents on behalf of the entity, not under your own name.  Consider a separate bank account.  Don't commingle funds.  Your attorney can explain that stuff to you.

Forming an LLC is pretty easy, particularly a single-member LLC.  With that having been said, do it the right way and meet with an attorney and spend a few bucks to get it done properly. Using legalzoom may save you a few bucks but if anything goes wrong it will be a headache.

 

[glvsav37]

I just created an S-Corp for my business. The option was LLC or S-corp but my accountant said it was better to do the S....IDK the whole deal, but thats what I did.

 

[RUSF18]

My wife is in the process of starting her own business. Without going into too many details, think of a hospital social worker but in a private practice setting. I told her she'll need to setup an LLC for protection but she has a colleague who did something similar and didn't set up any kind of business, but just had liability insurance for herself. I admit to knowing very little about it but it seemed like a bad idea to not put a barrier between yourself and your clients. 

Can anyone recommend some good resources to look into for these types of decisions? She'd operate the business in NJ. 

 

[bigmarc27]

My wife is in the process of starting her own business. Without going into too many details, think of a hospital social worker but in a private practice setting. I told her she'll need to setup an LLC for protection but she has a colleague who did something similar and didn't set up any kind of business, but just had liability insurance for herself. I admit to knowing very little about it but it seemed like a bad idea to not put a barrier between yourself and your clients. 

Can anyone recommend some good resources to look into for these types of decisions? She'd operate the business in NJ. 

So this is similar to my situation. Wife finished grad school and will be a Speech Langauge Pathologist. She has a job that she starts as soon as her license is complete in the next couple of weeks. 

We met with a CPA and they said LLC. At this point, I just want to make sure we do everything to keep her separate from our personal assets. The CPA did mention separate bank accounts and to only use money from the business account in business items and such. Don't want to "pierce the corporate" veil. 

 

[bigmarc27]

I think you have to have a physical address.  ETA:  You can get a physical address at some of those UPS store places.  It's like a PO Box, but not a "PO Box."  It's a few dollars a month more expensive though.

And in my very limited one time opinion it helps to have at least 2 owners of the LLC.  If you have just one owner, well I don't think there is much protection of your separate assets.

Note:  I'm not an attorney, but have had an LLC set up once.  

Hmmm I'll check on that, thanks!

 

[Chemical X]

I always use this site:

http://www.nolo.com/legal-encyclopedia/limited-liability-company

if you ever own investment real estate, it should be held under an LLC.  in fact, 1 LLC per 1 property. 

 

[Chadstroma]

I can't see a PO Box doing anything for liability. It will, however, cause issues for your banking. Depending on the bank- they may not open an account at all or require more paperwork and/or other requirements. 

 

[QuizGuy66]

Did this recently

At the recommendation of friends I've gone the LegalZoom route which so far has been pretty painless.

It's a simple consultancy which probably will help things.  Still nervous about the whole thing.

-QG

 

[QuizGuy66]

I shoulda gone with "QuizGuy66 LLC-QG"

-QG