How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Richard Your Own Question
Richard
Richard, Attorney
Category: Business Law
Satisfied Customers: 54704
Experience:  32 years of experience practicing law and a businessman.
17027240
Type Your Business Law Question Here...
Richard is online now
A new question is answered every 9 seconds

I have a couple of questions 1) I run a website that is

Customer Question

I have a couple of questions

1) I run a website that is not monetized yet. I don't plan to earn money from the blog for few more years. But, I would like to get personal liability. I was thinking of creating an LLC (State of NC) so I can get liability.

I don't intend to claim tax deductions from the loses. So, I was wondering if I can create LLC just for the sake of getting personal liability and not claim any tax deductions. I will pay the annual fees to the State to maintain the company.

Other option that came to my mind was to get umbrella coverage from my home insurance.

I was wondering which option is better and if there is any other option that I use?

2) How to I create an LLC and associate that to the website?


Thanks.
Submitted: 6 years ago.
Category: Business Law
Expert:  Richard replied 6 years ago.

Good morning. It is always a good idea to organize a business into a separate limited liability entity. An LLC offers the most flexibility....cheaper than a limited partnership; more flexible than an S Corp; no double taxation as with a C Corp. You create an LLC by filing a Certificate of Formation with the Secretary of State. You would then obtain an Employer Identification Number from the IRS' website. The only remaining thing you would want to do is prepare a simple Operating Agreement which sets forth the basic terms of the LLC....members, contributions, voting, right to sell interest, allocation of profits and losses, ownership interests. If you are the sole member, this can be really simple.

 

 

I hope this has given you the guidance you were seeking. I wish you the best of luck!

 

 

 

The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

Customer: replied 6 years ago.
Ok, LLC sounds good, but how do I handle the tax part. Can I get EID from IRs and not file any taxes on that since I don't intend to claim deductions and make profit?

How to link the website to the LLC I will be creating?
Expert:  Richard replied 6 years ago.

Sorry for the delay...had meetings most of the day. Yes, the EIN simply is a taxpayer identification form. You will only have to file an income tax return when the LLC starts operations. You will want to have your IT folks simply establish a website for your LLC..

 

 

I hope this has given you the guidance you were seeking. I wish you the best of luck!

 

 

 

The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

Related Business Law Questions