Do It Yourself LLC.... Here's how.

Discussion in 'Business Operations' started by KathysLGC, Jun 1, 2005.

  1. KathysLGC

    KathysLGC LawnSite Bronze Member
    Posts: 1,345

    When I first started I didn't know anything about starting up a legit business so i had to do things the hard way but my wife is a paralegal so she helped me. I'd like to pass on some tips to those just starting out. This is how it's done in CT. It is probably the same in most states.

    First you need to pick your name and see if it's available using this form. $30.
    http://www.sots.state.ct.us/CommercialRecording/Forms/Generic/resname.pdf

    Once you have your name approved you will need to apply for the LLC using this form. $60. http://www.sots.state.ct.us/CommercialRecording/Forms/Ctllc/ORGANIZ.pdf
    You will need to fill out every line on this form or it will not get approved.
    You can look in Concord to see if it was accepted or not. You can also look up any LLC to get basic info on them. Here is Concords link.
    http://www.concord.sots.ct.gov/CONCORD/online?eid=99&sn=InquiryServlet

    Next you will need you EIN # using the SS4 form. This is also your Federal Tax ID.
    https://sa.www4.irs.gov/sa_vign/newFormSS4.do

    Now you will need you state Tax ID which is the Reg-1 form.
    http://www.ct.gov/drs/lib/drs/fillable_forms/2004forms/salesandusetax/reg-1.pdf

    Now you need to open a business checking account with a bank. They will need your EIN# and Tax ID # and that's it your very own LLC....

    Oh yeah before i forget, you will want/need Ins. Get a minimum of a $1,000,000 liability policy. Read the fine print when getting your quotes. See how much your deductible is for theft and what they cover per occurrence. If your going to be plowing you might want to add snow plow coverage which is usualy cheaper if added to the policy rather then later in the year.

    I'm not sure if i missed something but if i did i will update this list. I hope this helps any one new that wants to go legit.
    Also feel free to give any feedback to the info provided.
     
  2. mbricker

    mbricker LawnSite Senior Member
    Posts: 505

    This is good info on the responsible approach to starting a business.

    The only thing I would ask is, if someone can start up a business in your locality without meeting requirements of this type-- doesn't it make sense for the legitimate businesses to band together, to lobby local authorities for licensing requirements that include all of the points covered by Playboy.

    The biggest reason scrubs exist and make life difficult for the legit businesses? When there are no legal requirements that keep the fly-by-night guys from operating.
     
  3. KathysLGC

    KathysLGC LawnSite Bronze Member
    Posts: 1,345

    Thanks. I agree. We need to unite and either force the scrubs out or force them to go legit. The only way I can see to do it is to educate clients when giving bids. They need to know why we are legit and why they should expect the same from who ever they use. The info i provided is to help any one out that wants to go legit but don't know where to start. I've seen online people charging $200-$400 to do all this for you but if one looks at the links i provided they will see how inexpesive and easy it is to do.
     
  4. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    One of my BIGGEST erks .... with the states government official's .... is when you go get a driver's license you have to show proof of insurance .... how come this is not true when getting an OC or Business License .... at least in FL it's not

    Our state reg's require W/C when more than 3 employees exist .... one would also think that when a business does a 941, 940 or even UT-6 (monthly payroll tax deposits, quarterly fed pay-roll statement & state unemployment deposit) that they could have a simple check mark or statement that W/C exist for this business

    Yess good post on the LLC set up
     
  5. KathysLGC

    KathysLGC LawnSite Bronze Member
    Posts: 1,345

    Proof of Ins would be nice. I don't think it's mandatory in CT. It should be though.
     
  6. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

    <marquee loop="infinite" bgcolor="#DDDDDF"><font color="#000000">Have a tax question? Ask our CPA. Click Here </font></marquee>
    Hi Fantasy Lawns,

    That is a great idea. Very solid and simple.

    Wouldn't it be great if everyone here sent a letter to their state officials about this!
     
  7. kc2006

    kc2006 LawnSite Silver Member
    Posts: 2,442

    good post. Only thing needed to change is the web address' to whatever state your in and your set. I know in ohio you down load a "starter packet" that gives you a guide line everything needed to start in business (you pick what field your going into and it gives you the proper packet) I had my accountant do the paper's for me just to make sure I was right, he charged me 20 bucks because I had them all filled out but had him look over them. I wouldn't see paying someone big bucks to do it for you, unless you can't read :D
     
  8. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    All of that is fine and good "IF" you know LLC is the route you should take. But what if it isn't. What if you find out later that you should have incorporated instead? Only an attorney or a CPA can tell that after spending an hour or so with them and describing your business.

    This is exactly what happened to me years ago. I was 100% positive that I should incorporate (S or C, didn't know) only to find out after spending an hour or so explaining things to my attorney that LLC was my best road to travel.

    Think about it...
     
  9. Glenn J

    Glenn J LawnSite Member
    Posts: 211

    Very interesting information, thanks for sharing. You didn't need to get an attorney involved? What was the total cost to get the LLC set up?
     
  10. KathysLGC

    KathysLGC LawnSite Bronze Member
    Posts: 1,345

    Nope you don't need an attorney. The cost is right there on the forms. That's why I titled the post DIY LLC. Everything is there with directions as well. You can follow the links further if one doesn't want to go LLC. I think LLC is the most common so I provided the how to info. Many attorneys will give you free consultations so if you don't know anything about running a business it might be a good idea to speak to one. You can still save money by doing all this your self but you may want to ask questions like:

    Should I go LLC or what?

    Once I am an official LLC what's the next step?

    How do i go about keeping books?

    How do I pay myself?

    What can I do to not red flag the IRS for an audit?

    See going LLC doesn't mean you know how to run a business. questions can be asked here and searches can be done either here or google.

    My next quest is to clean my criminal record. One doesn't need an attorney for that either but it will really help. I have two misdemeanors that i want off my record. I have all the paper work I need and have all the instructions. Once I go before the Board of Pardons and hopefully get pardoned, I will post that info in the off topic forum. I'm sure i'm not the only one with an assault charge on there record..... Yes the joys of being young...
     

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