How do I start a LLC? - Contractor Talk - Professional Construction and Remodeling Forum

redlight · 05-06-2009, 08:01 PM

I've been in the commercial drywall buisiness for 23 years working for the same Union out-fit. I started as carpenter and worked my way into a forman position, which I did for approx. 17 years. A year and 1/2 ago i went into the office as an estimator and project manager and picked it up quickly and had pretty good success (Largly due to my field experience). Unfortnatly this recession led to Overhead cuts in the office and being the low guy on the totem pole I now find myslf out of a job. I know a lot of people in the biz and am thinking of starting my own gig. Unfortunatly I have no idea where to start. I'm assuming assuming I need to start an LLC and obtain insurance. I currently do not have my license but it is in the works through my Union. Where do i start? How do i form a LLC? Any input or suggestions or advise will be greatly appreciated. Thanks

480sparky · 05-06-2009, 08:09 PM

Quote:

Originally Posted by redlight

...... I'm assuming .........

First mistake.

Correct it by talking to an accountant. Then take the information you're given to a lawyer.

FowlOne · 05-06-2009, 08:09 PM

Best advice i can give you is talk to your accountant/lawyer even your insurance man, make sure LLC is right for you. There are a lot of things to consider they will help you decide which entity is right for your buisness.The process is relatively easy, but definetly have your lawyer do it for you. As my accountant told me when i started, It's pretty simple untill you make a mistake.

AtlRemodeling · 05-06-2009, 08:22 PM

I will give you the advice that my lawyer and accountant gave to me. Until you are a very large company a LLC is usually the best way to go. They had a host of reasons/explanations that I do not have in front of me at the moment. Given the info I was convinced.

That said, your lawyer can set up the LLC for a fee but you can do most of the work yourself if you want to save the money. Here are some of the steps you will need to take:

1) Register with Secretary of State (this will include filing name reservation and operating agreement)
2) File with IRS for tax id number
3) If you plan to work as a DBA you will need to file this with the Secretary of State
4) State licensing (if required)
5) Business license in you local county/township
6) Open checking account once you have
7) Apply for GL and WC insurance
8) Find a mentor
9) Work you butt off as a newly self-employed entrepreneur

KennMacMoragh · 05-06-2009, 11:02 PM

Why do you want to choose an LLC as opposed to a sole proprietor? Do you know what all the options are? There's about seven different business types you can choose from. Sole proprietor, partnership, corporation are the three basic ones, then there's different kinds of partnerships and corporations. Do you have a partner you want to share your business with? I believe an LLC is only for partnerships or corporations, which means more than one person.

**Teetorbilt** · 05-06-2009, 11:22 PM

Sole Proprietor leaves all of your personal assets up for grabs should a lawsuit be filed against you. If you rent, have little and drive a $500 truck this is for you.

Being a LLC, corp. or other offers different layers of personal protection and tax advantages. Stay tuned! Obama is reworking many aspects of this.

KennMacMoragh · 05-07-2009, 02:53 AM

Actually I was wrong, one person can form an LLC. You didn't used to be able to, they changed the rules.

AMA D-MAX · 05-09-2009, 08:11 AM

you can be a what is called a " single memeber " for your LLC and I think is the easiest way to incorporate. if you go with an LLC,
the first thing I did was to get Pre Paid legal, for $ 50.00 a month you can have legal questions answered and they can help you with future legal advise.
Even to help you get the corporation status of your preference.
Good luck and get ready to work long hours. Welcome to the club