question Do I need to register as an LLC in my home state moving forward? Taxes??

[sansmidman]

I have been spending a ton of money lately acquiring some good domains and it was brought to my attention by a seller that I should consider setting up an LLC moving forward. It was my biggest purchase to date and the seller informed me about some of the possible trademark concerns with that domain and how I should conduct all domaining under an LLC.

So far I have been pretty much using my personal banking and personal PayPal and personal Escrow accounts. I understand the protection an LLC brings in terms of liability. Aren't LLC's filed under the home state though? Does that matter? Do I need to set up some kind of federal or nationwide LLC? I'm in the U.S btw.

How does this affect my taxes at the end of the year? Are single owner LLC like a sole partnership? Basically have a LLC company bank account and pay taxes on profit at the end of the year with the regular 1040?

 

[johnn]

https://www.legalzoom.com/business/business-formation/llc-overview.html

 

[Brian L.]

A single member LLC sounds like a good fit for you.

Here is a helpful article that highlights the differences between a single-member LLC and a Sole Proprietorship:

https://quickbooks.intuit.com/r/structuring/the-single-member-llc-an-ideal-choice-for-solopreneurs/

 

[krishmk]

Consult a CPA in your Area. They should be able to help you out with taxes and local laws.

 

[sansmidman]

https://www.legalzoom.com/business/business-formation/llc-overview.html

A single member LLC sounds like a good fit for you.

Here is a helpful article that highlights the differences between a single-member LLC and a Sole Proprietorship:

https://quickbooks.intuit.com/r/structuring/the-single-member-llc-an-ideal-choice-for-solopreneurs/

Consult a CPA in your Area. They should be able to help you out with taxes and local laws.

Thanks for the links everyone. Single member LLC does sound perfect for me. Basically forming an LLC also gives me an opportunity to get an EIN number and start a business bank account associated with the LLC and thereby completely separating my personal assets from the business.

I guess my only question now is are there any benefits using a third party service like Legalzoom linked above or others like it to form your LLC? Local CPA might be even better huh?

I see some of these services also gives you a phone number that redirects calls and texts to my personal phone number. That added level of privacy seems cool. Could I replicate that same phone forwarding service through things like Google Voice?

 

[Brian L.]

It’s probably a good idea to talk to a CPA first, but creating an LLC is pretty easy in most states. Requesting an EIN from the IRS is simple and free. A google voice line / google voice mobile app is a great option for a business phone line.