Starting a new LLC in VA

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bee0011

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Hello everyone, I am in the process of mapping out a plan to start a new LLC in VA. As of today I do freelance IT work under a partnership for the past 10 years but now I need to do this under a new business so I been thinking of starting a single member LLC so I can manage a few business plans I have, my IT business, a few website projects and home buying then flipping/rental. Not sure if all of that can fit under the same umbrella but any input would be gladly appreciated. I am moving out of my office space soon so I have been looking into getting one of these mailbox rental suites from UPS, Post Net or something like that to use as the mailing address instead of my home address so I can work from my home office. I have been reading a few posts on this forum and it seems like I will need an accountant and local lawyer to assist with these plans but since I am in the earlier stage of this switch I wanted to get any feedback or recommendations on things I may not be thinking of or any direction. If I need to add more info let me know
 
How's this for confusion: You might not need a lawyer or an accountant and you might not need an LLC but if you act on my comments you do so at your own risk.

1 - The following is paraphrasing what a tax attorney has contributed to other sites:

"The LLC form of business, like the corporation, protects the owners of the business from personal liability for the debts of the business. For example, if the LLC enters into a contract with a third party and breaches it, the LLC is liable for that, but the LLC members are not unless they personally guaranteed the contract, which is something that lenders and astute business people often insist upon. The LLC member is always responsible for his own debts and wrongs, including liability for the negligent acts he performs for the business (and for which the LLC might also be liable). There is also the possibility of "piercing the corporate veil" (google it) which is an even bigger risk for single member LLCs.

The LLC form of business does not protect the LLC from being sued. What it does, when the LLC is operated properly, is prevent the owners from being liable for the LLCs debts simply because they are owners. Owners of sole proprietorship and general partnership businesses are personally liable for all debts of the business just because they own the business. Owners of LLCs, LLPs, and corporations are not liable just because they own the business.

But the LLC does not protect owners of the business from everything. For example, an owner of a LLC will be personally liable for any loans/credit of the LLC that the owner personally guarantees. Most lenders/businesses that extend credit to small business will routinely demand those personal guarantees. You are also always liable for your negligence. So if you you are negligent while doing work for the LLC and someone is injured, both you and the LLC are liable for that. You protect against that possibility with a good insurance policy. Also, the law makes owners of businesses personally liable for a few specific obligations of the LLC, like certain tax obligations for example. So where does the LLC protect you? You will not be personally liable for contracts that the LLC enters into that you do not personally guarantee. You will also not be personally liable for the debt that arises from the negligence of other employees/owners of the LLC. Again, this assumes you run the LLC properly so that a creditor cannot successfully pierce the corporate veil to go after you personally."


That being said, in your case an LLC might be a good idea for a couple of reasons:

a - You might need to segregate your future activities from your partnership activities and putting them in an LLC box would be appropriate.

b - Customers may want to hire only bona fide businesses to eliminate the issue of employee vs. independent contractor.

Your state's LLC registration page should have all the how-to stuff that you need.

2 - Accountant - Seems to me that if you have been in business for 10 years you already know how to keep income and expense records for tax purposes. An LLC is a disregarded entity for income tax purposes and you would file your income taxes on Schedule C and Schedule SE (and other appropriate forms) just like you did in the past. The IRS website has plenty of tax publications for small businesses.

3 - Attorney - Perhaps initially to show you how to segregate your LLC activities from your personal activities to maximize the protection an LLC might afford, and to draft appropriate contracts.

4 - Last but not least - Don't expect an LLC to protect you from everything. Bolster the LLC protection by buying the appropriate General Liability and Professional Liability insurance.
 
Hello, I have set up an LLC in VA and have applied and received my EIN number for the LLC but now I want to set up a DBA under the LLC. I am planning on going to Henrico county courthouse to do this but do anyone know what I need to take to the court to complete the DBA process? Also once the DBA is setup how do I go about getting an EIN number for the DBA?

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my EIN number

"EIN number"? An employer identification number number? Kinda like a PIN number or a VIN number or an ATM machine, I guess....

do anyone know what I need to take to the court to complete the DBA process?

I'm sure plenty of folks in your unidentified state know. I suggest you do some basic googling.

Also once the DBA is setup how do I go about getting an EIN number for the DBA?

You don't. "DBA" stands for "doing business as," and all it means is that a person or entity is doing business using a name other than his/her/its actual name. "A DBA" is not an actual thing. In other words Bob Jones might do business as "Custom Plumbing Service," but it's still Bob Jones doing the business. Similarly, Bob Jones Plumbing, LLC might do business as "Custom Plumbing Service," but it's still Bob Jones Plumbing, LLC doing the business. In the first instance, Bob Jones uses his own social security number. In the case of an entity such as a corporation or LLC, the EIN is used.
 
"EIN number"? An employer identification number number? Kinda like a PIN number or a VIN number or an ATM machine, I guess....



I'm sure plenty of folks in your unidentified state know. I suggest you do some basic googling.



You don't. "DBA" stands for "doing business as," and all it means is that a person or entity is doing business using a name other than his/her/its actual name. "A DBA" is not an actual thing. In other words Bob Jones might do business as "Custom Plumbing Service," but it's still Bob Jones doing the business. Similarly, Bob Jones Plumbing, LLC might do business as "Custom Plumbing Service," but it's still Bob Jones Plumbing, LLC doing the business. In the first instance, Bob Jones uses his own social security number. In the case of an entity such as a corporation or LLC, the EIN is used.
Thanks .... If I receive checks in my DBA name, do I open up an a bank account in the DBA name or is there a better way of doing this ?

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Thanks .... If I receive checks in my DBA name, do I open up an a bank account in the DBA name or is there a better way of doing this ?

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If you plan to run your business the way you are trying to open your business, things might not go well for you.

You need to hire a lawyer.

Do NOT open another thread asking the same or similar questions.

This thread is closed.
 
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