Stevegotcrabgrass
01-14-2010, 01:29 PM
A lot of people ask what is needed, what to do etc...I will share what it took for me....(keep in mind this is NY)
File for LLC - you must file with your state, LLC is a good idea especially if you own a home or other assets
Publication requirements for the LLC - You must publish in two papers, one weekly and one daily for 6 consecutive weeks. The county dept of Consumer affairs will advise where to publish
After publishing you need to submit, along with payment, a proof/affidavit of publishing
Now the LLC is set - again each state may be different
Insurance - Your county will determine what insurance minimums are needed for the type of license needed. Go with a higher amount than the minimum if you can afford to. You might think that is a dumb idea, until you need that insurance.
Federal EIN - Needed for Federal Tax purposes, must file with IRS and receive employer ID number. You cannot skip this...if you get caught, and who knows if you will, you will be done.
State ID Number - Depending on the state you file your LLC in, they may automatically send you one, If not you best look into getting one.
State sales tax authority certificate -Depending on the state you may/probably need this.
Workers Compensation Certificate etc - Varies depending on state but will be needed (probably)for licensing....
Lets see you are now and LLC, Got all your Tax items in Order, insured, workers comp. and next you need to get a Bank account
Most banks will want most of the above info.
Now you can apply for your license. The application (in NY) wants everything you already got above, and you NEED to pay the fee for the license application with a check from the Bank account you created and listed on the license application.
Depending on your county you have to take a TEST to get the license. The test covers business laws. After you pass the test you then have to pay more money to get the license.....
Now lets see, you are insured, you are an LLC, Licensed, All tax info is ready to roll and you are authorized to collect sales tax. I believe now you are finally legit....
Keep in mind this may vary from state to state....except the Federal stuff. That you need. I believe if you are a sole prop. you don't need an EIN. You probably need an authorization to collect sales tax though.
Don't forget now you will have a ton of paperwork to file come tax time, and you probably will need an accountant.
This is all before you cut one lawn or plant one bulb. And there is a decent amount of money to lay out....
And we wonder why so many people are NOT legit, the states/Gov make it hard and confusing. I am legit, and I hope this helps people get their act together. This is an overview from 30,000 feet. Some of these forms are a pain in the butt.
File for LLC - you must file with your state, LLC is a good idea especially if you own a home or other assets
Publication requirements for the LLC - You must publish in two papers, one weekly and one daily for 6 consecutive weeks. The county dept of Consumer affairs will advise where to publish
After publishing you need to submit, along with payment, a proof/affidavit of publishing
Now the LLC is set - again each state may be different
Insurance - Your county will determine what insurance minimums are needed for the type of license needed. Go with a higher amount than the minimum if you can afford to. You might think that is a dumb idea, until you need that insurance.
Federal EIN - Needed for Federal Tax purposes, must file with IRS and receive employer ID number. You cannot skip this...if you get caught, and who knows if you will, you will be done.
State ID Number - Depending on the state you file your LLC in, they may automatically send you one, If not you best look into getting one.
State sales tax authority certificate -Depending on the state you may/probably need this.
Workers Compensation Certificate etc - Varies depending on state but will be needed (probably)for licensing....
Lets see you are now and LLC, Got all your Tax items in Order, insured, workers comp. and next you need to get a Bank account
Most banks will want most of the above info.
Now you can apply for your license. The application (in NY) wants everything you already got above, and you NEED to pay the fee for the license application with a check from the Bank account you created and listed on the license application.
Depending on your county you have to take a TEST to get the license. The test covers business laws. After you pass the test you then have to pay more money to get the license.....
Now lets see, you are insured, you are an LLC, Licensed, All tax info is ready to roll and you are authorized to collect sales tax. I believe now you are finally legit....
Keep in mind this may vary from state to state....except the Federal stuff. That you need. I believe if you are a sole prop. you don't need an EIN. You probably need an authorization to collect sales tax though.
Don't forget now you will have a ton of paperwork to file come tax time, and you probably will need an accountant.
This is all before you cut one lawn or plant one bulb. And there is a decent amount of money to lay out....
And we wonder why so many people are NOT legit, the states/Gov make it hard and confusing. I am legit, and I hope this helps people get their act together. This is an overview from 30,000 feet. Some of these forms are a pain in the butt.