I’m about to pay $125 to register my LLC online.
All I want to do with it is have it to buy a property when I find a good deal, and during tax time I’ll tell my accountant that I have an LLC, and he can do what he has to at that point.
Should I bother going to a CPA and paying $600 to get my LLC registered?
Please give me some advice on what I’m missing out on by just registering it online…thankss!
There is a lot more to owning an LLC than just filing it on line. You have to structure how it is taxed, etc. Have a professional set up your first one, and then you will know exactly how it works. Each LLC formed thereafter can by then done by you. Better safe than sorry. You’ll be paying the IRS a lot more than 600 - 1000 dollars if you screw up.
At what point do I have to do the tax structure? There’s no option online regarding the tax structure. It’s a very simple registration process. That’s why I’m thinking of just registering the LLC online, and when it comes to tax time, I’ll speak to my accountant and we can figure out the taxes when its due time.
Thoughts on this?
registering the LLC is one thing. electing how you’ll be taxed has nothing to do with setting it up with the state.
register with state
tax stuff is IRS
additionally, depending on the type of business you’ll be running, you’ll have to work out paying state taxation etc…
this is all CPA stuff.
One thing to keep in mind is that if you don’t make any tax elections for the LLC, the IRS has some default classification rules which will specify tax treatment for you. In general, for new businesses and investors, the rules don’t hose you. Also, next year, you can elect to use some other, non-default classification.
The birds-eye view…your LLC, if it has a single owner, will be treated as a disregarded entity, which will mean that for income tax purposes it doesn’t exist. If you’re running an active trade or business, e.g., the LLC will get treated as a sole proprietorship. And if you’re passively investing in real estate, the LLC will just disappear and your real estate stuff will get reported (as usual) on a Schedule E.
$125 sounds like the NV fee. I hope you own property in NV because you are wasting money setting up there if you don’t.
What do you plan to use for your operating agreement and other corporate formalities if you don’t use a professional? The LLC benefits are derived from the operating, not the statute.