Ask a Business Lawyer. Get Business Law Questions Answered ASAP.
Hello, I will be happy to assist you. After receiving your answer, and unless you have need for clarification, your accept (by clicking the green "accept" button) would be appreciated. Although you have made a deposit, I cannot receive credit for my work without your accept.
Yes, you could add him as a member of the LLC at a later date. That happens all the time.
You will not put your personal assets in jeopardy by operating an LLC. That is the point of an LLC -- it is liable for its own debts, etc., and the creditors of the LLC cannot reach your personal assets. The only thing that would put your personal assets at risk is if you personally guarantee a loan to the LLC -- but that would happen regardless of whether you choose to operate your business as a member of the LLC or simply in your name individually without the LLC.
I believe I have answered your question. As noted above, please let me know if you need clarification, and if not your accept would be appreciated. If you are a monthly subscriber, you must still click the "accept" button for me to receive credit for my work, but you will not be charged an additional fee.
If you later open a new question and would like my assistance, please begin the question with "To TMcJD...." This will ensure that only I answer the question.
Thank you for using JustAnswer. Your "accept" (by clicking the green "Accept" button) would be greatly appreciated. Although you have made a deposit, I cannot receive credit for my work without your accept.
You understand that your use of or communication on this forum, in any and all ways, is intended for general informational purposes only and shall not constitute and/or be relied upon as legal advice or be construed as creating an attorney-client relationship. Further, you agree not to rely on anything I say as legal authority and where appropriate for your own protection will obtain appropriate legal and or tax advice with an attorney or other professional licensed to practice in the jurisdiction where your legal or other issue arises.
Thank you for your response. In your opinion is an LLC the safest way to begin a new business such as this? Why would you opt for an LLC over forming a corporation etc. Thanks again!
Yes, it is generally thought an LLC provides the best asset protection. Plus, there are not all the corporate formalities to follow as you would be required to comply with if you were a corporation.
Plus, generally speaking, an LLC has better tax treatment for a small, single-owner business.
That's why I would opt for an LLC.
I never saw that you had asked a follow-up question. Sorry for the delayed response.
How you file taxes depends on how the LLC is taxed. A single member LLC, by default, is taxed as a sole proprietorship business -- you would report income and losses on your personal income tax return (Form 1040). I would highly suggest you use an accountant to assist you.
You will file taxes every year by April 15 -- just as you do as an individual.
If LegalZoom does not provide you with an operating agreement, I would suggest you also create an operating agreement for the LLC. LegalZoom may have that document (I'm just not certain whether it's included with your formation package).
If you will be completing home improvement construction projects, your state may need to be licensed. See this publication for more information:
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).