Member: I received an email from a company inviting me to establish my LLC via their website for $139.00 (discounted
if I enter their special code) - from what you've said it's really not the kind of thing we need to 'pay' someone else to do for us?

Host - Virtual Office Goddess
Not really - it was straightforward, quick, and cheap!

Member: It doesn't appear that my states sec'y of state accepts LLC filings - any suggestion for where else I might look?

Host - Virtual Office Goddess
I would check Delaware and Colorado. I KNOW you don't have to be a resident of DE to file and LLC there...

Member: OK, great to know - thank you!

Member: Nevada is another state that isn't complicated, I believe

Member: So it truly doesn't matter if I don't live there?

Host - Virtual Office Goddess
Nope, not in Delaware!

Member: Here's a website I just looked up. Maybe it will be helpful? http://www.scorporationsexplained.com/

Member: www.selfemployedweb.com is another informative site

Member: So, LLCs need to pay in a percentage of income quarterly - how much is that and is it paid to the IRS or through the State? Is there a form that comes every quarter to facilitate this or? I guess what I'm wondering is, how easy is it to manage and ensure you're filing correctly throughout the year, etc?

Host - Virtual Office Goddess
I deposit 30% of my NET income to the feds at https://www.eftps.com/eftps/ each quarter. There is no form, but the website is easy to navigate

Member: OK, and then what do you do at tax time?(Do you ever get money *back*??)

Host - Virtual Office Goddess
At tax time, you file your taxes using an additional form called a Schedule C with their taxes to show business income/expenses
Money back depends on whether you owed taxes or have over-paid for the year.
If you have a single ownership, you set up the account using your SSI number - if there are multiple owners you have to request
and EIN number from the feds

Member: Can I transfer my EIN from individual to LLC or S-Corp?

Host - Virtual Office Goddess
No, EINs are non-transferable.

Member: I have heard that it is good to request an EIN number instead of using your SSN #. What are your thoughts on this?

Host - Virtual Office Goddess
Using an EIN means that you are not handing out your SSI number to all and sundry - probably a good idea to use EINs in
this age of identity theft...

Member: So anyone can request an EIN, but it's mandatory for a business with more than one owner?

Host - Virtual Office Goddess
Yes - also, a multiple owner has to file an additional form (Form 1065) showing how much money was earned by each partner.

Member: So schedule C is the form we're looking for at tax time? And is an LLC allowed to have employees?

Host - Virtual Office Goddess
Yes, and LLC CAN have employees - but then you have to file (and pay) quarterly taxes for your employees, as well.
You are required to deduct fed/state/ssi/medicare taxes from the employee and MATCH the ssi/med. These taxes are
deposited quarterly. Again, through the EFTPS system

Check the links page on my website www.virtualofficegoddess.com/links.htm for some useful articles on LLC taxes and small business tax deduction links

Member: My accountant was saying something along the lines of a schedule c needing to be filed

Host - Virtual Office Goddess
Yep - Schedule C goes with your standard tax filing, showing the business income/expenses for the year. This is why I use QuickBooks to track my business. It makes the tracking SO MUCH easier!

Member: Quickbooks has a rental version that I use.

Host - Virtual Office Goddess
Remember - your LLC income is considered PERSONAL income - the schedule C allows you to show the income AND deduct your expenses.

Member: Thank you so much - I, for one, was thoroughly intimidated by the whole process and feel much better about it now. I'm going to get this set up immediately and I thank you so much for the info!!

Host - Virtual Office Goddess
You're welcome! Glad this helped!

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