A couple simple questions.
I’m looking for a book or anything that’ll tell me how to set up an LLC and teach me some basics. Anyone have any recommendations?
And I was also just wondering if I could convert an LLC into a C/S/Whatever corporation if I one day decided to do so?
Well you don’t have to convert your LLC to an S Corp, but you can certainly have your LLC taxed like one - consult a CPA.
Book: NOLO Form Your Own Limited Liability Company - 4th edition
Comes with CD with alot of the paperwork, including
Articles of Organization
Operating Agreements
Certification of Authority
Minutes
It’s great!
Plus it has info in the index on all 50 states.
Good luck!
When you’re sick, would you try to do your own surgery? Or would you leave it to folks who are already knowledgable and experienced?
You can have an LLC set up for about $200 plus state fees in less than a week in most cases. How much time will it take to save that $200? What would that time be worth to you to find a new deal? I try to never do anything myself that someone else can do for me easier and cheaper. But that’s me.
Basics:
LLC is the preferred entity for asset protection. Corporations are not.
Corporate stock is considered an “investment.” As such they (stocks) are available to satisfy a judgment if you are personally sued and lose. This means that when you rear-end someone in a Pinto, get sued and lose, that they gain control of the company and its assets.
Member interest in an LLC is considered “personal property” by statute. As such it is NOT available to satisfy judgements against the member.
Both a corporation and an LLC protect the owner from liabilities arising within the company. Only the LLC protects the company from liabilities arising with the owner.
Further, you can choose to tax your LLC as a: sole proprietor, partnership, S-corp or C-corp depending on how many members you have and your tax preferences. This gives the LLC tremendous flexibility to tailor the taxes to what works best for your particular situation.
You generally can’t “convert” an LLC to another entity, but why would you want to?
Anything else?