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woollymammoth
04-27-2005, 10:32 AM
Greetings all,

I'm wondering about peoples experience forming LLCs. I assume you are doing this to limit your liability in the case of any legal problems and also to open you up to having more tax deductions. Any other advantages?

Is a Delaware LLC really preferable? Any issues with bank accounts, etc... for example if you are physically located in California? Looks like it's gonna be a couple hundred bucks to set one up here:

http://www.companiesinc.com/

any experience setting up LLCs online? what about an offshore LLC? is there really any benefit? Seems like it would make you appear more dodgy to the IRS?

I've had a limited company in the UK to do consulting work and I really just found that the overhead of administering it was more trouble than it was worth.

Thoughts?

Thanks.

William.

paul
04-27-2005, 06:33 PM
A few years ago I got carried away and set up several. I did not fully realize that each one means (In the USA) a separate set of books and its own tax return. I no longer think it is worth it until your annual net is $100,000+ and/or you work in a field with serious liability exposure.

moonshield
04-28-2005, 12:39 PM
wollymammath... Do you reside in the US?

woollymammoth
04-28-2005, 01:41 PM
residence is a bit of a grey area... but yes I am currently based in california.

moonshield
04-28-2005, 04:13 PM
I do not have experiance with setting one up online. You do have the benefits listed, I don't know about how it is in CA but in NC it was no hassle setting up. I was up and running in a very short period of time. Convience may be worth an extra hundred dollars.

The offshore LLC looks like it could be tad bit risky. I personally wouldn't do that.

I believe Chris has a Delaware LLC...

Chris
04-28-2005, 04:41 PM
Nope, mine is Michigan. I looked at it but decided it wasn't a big deal and wasn't worth the extra hassle to do it out of state.

moonshield
04-28-2005, 05:47 PM
Oh okay.. Thats what I thought too, not worth the hassle.

Cutter
04-29-2005, 07:11 AM
Advantages: LLC is easier than having a corporation.

Generalissimo
04-29-2005, 08:06 AM
Obvious advantage is limited liability.

I think I read that half of all LLCs are registered in Delaware, and the registrations provide them with $1.6 billion of income a year.