auntstephie Posted March 14, 2010 Report Share Posted March 14, 2010 I just want to say "THANKYOU!!!" to everyone answering my questions on having a longarm business. I like to gather as much information as I can from experienced sources before I jump into anything. Hopefully, it produces a wiser decision on my part. So here is my next topic...Legalzoom vs. attorney to apply for my LLC status? Any comments? Suggestions? Obviously I want to keep my start up low, but I don't want to shoot myself in the foot either. Thanks, Stephanie Childers Link to comment Share on other sites More sharing options...
quiltmonkey Posted March 14, 2010 Report Share Posted March 14, 2010 Stephanie, I highly recommend you talk with a local specialist. Contact your local Small Business office. Advice from a CPA is probably cheaper than a lawyer and the CPA knows the legal requirements and needs for your specific area. All states have different laws. I have a CPA and she helped me set up my business at the very beginning. I have never hired a lawyer to set up my business. Unless you have a brick and mortar shop and employees, then I think you can get by with advice from a CPA. Link to comment Share on other sites More sharing options...
JustSewSimple Posted March 14, 2010 Report Share Posted March 14, 2010 Stephanie, I have a LLC from the state of MS and I needed neither an attorney nor legalzoom. i went to our state website and downloaded the form. I sent in my money and the forms along with the name of my business. In about a week I had my tax ID number and a legal business name. Then I contacted my accountant who told me how to keep track of my income and expenses. It cost me $50 for 5 years. That's it! My accountant takes my information 2 times a year and I'm done. I keep all my receipts so i will never get into any IRS trouble. Even my insurance was easy as my husband used to sell business/commercial insurance and knew just how to do it to keep my cost down but cover me well also. Good luck to you. Link to comment Share on other sites More sharing options...
Kueser Posted March 14, 2010 Report Share Posted March 14, 2010 Some of the things you pay for at the web sites are things you can do yourself at no cost, such as get a Federal EIN. Link to comment Share on other sites More sharing options...
srichardson Posted March 14, 2010 Report Share Posted March 14, 2010 Is having an LLC all that is needed to buy things wholesale or is there a resale license needed? Sue Link to comment Share on other sites More sharing options...
JustSewSimple Posted March 14, 2010 Report Share Posted March 14, 2010 Here in this state the LLC is all you need. You're state website will tell you or you can call them with your questions. Link to comment Share on other sites More sharing options...
srichardson Posted March 14, 2010 Report Share Posted March 14, 2010 Thanks Sylvia. My husband already has an LLC and I am going to check if I can use that. Sue Link to comment Share on other sites More sharing options...
Cheri-Artzgirl Posted March 15, 2010 Report Share Posted March 15, 2010 I am a Paralegal, I open LLC and Corporations for a living. The forms are so easy and you just need to go to your Secretary of State website to find them. However, you may need an attorney to write your "Operating Agreement" even if your the only Manager/Member you will need one to obtain loans (should you ever need a loan) in your business name. Each state varies so read what information your Secretary of State has to offer. Most Attorneys will give a consultation visit for free or at a greatly reduced rate. You can also start your business as a sole proprietor (you can still receive a Federal EIN and purchase supplies wholesale) then later when you see your loving this business and want to continue, change to an LLC. The reason to become a corporation or LLC is to protect personal assets in case of suit due to a business issue. If you own a shop or have employees, then yes I'd become an LLC or corporation. You do not need to be an LLC to purchase wholesale, I am a Sole Proprietor and purchase all my thread, batting and some other items wholesale. I went on the IRS website and applied for and received my Federal EIN in minutes and then applied with the State of Mississippi and received my State resale tax ID number without any help of an attorney which I could have gotten for free being I know a ton of them. Hope this helps! Link to comment Share on other sites More sharing options...
ffq-lar Posted March 15, 2010 Report Share Posted March 15, 2010 Thank you Cheri for the vote on the LLC. I don't know how the tales started that insist that new business owners must set up an LLC to "protect their assets". I had a friend literally holler at me that I needed an LLC or "someone" could "take away all my assets including my house" if it wasn't kept separate from the business. Hmmmm--I wonder what quilt-related catastrophe could befall a longarmer to the point of losing their house? Bad SID? A fire? (I have insurance for that.) A customer falls on your doorstep? Again--insurance. A rabid beaver gnaws a hole in the door and ruins all the quilts? Insurance--specifically rabid beaver insurance. Just being ridiculous of course. If you owe money on your machine, the bank would have asked for collateral and can clear that debt by taking custody of that collateral. Bad debts to a vendor--I don't know many that extend a lot of credit, but if you go that route, an LLC might be a good idea. You still owe the money, but they can't force your DH to pay it! Good point to set up an LLC if you start making some profits and step up your business--either by teaching, adding a machine, a storefront, or of course if you add employees. Then you will need to separate from the rest of your life/finances. Thanks for the inside look, Cheri! Link to comment Share on other sites More sharing options...
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