LLC Me
So I got a chance to speak with my Dad this weekend about getting an actual business structure formed. He's a lawyer and free legal advice helps when you're trying to start something on your own. Forming the LLC should be easy, but there's a small snag. Registering your business at the state level is a fairly straight-forward process. Registering at the federal level to get an EIN (employer identification number) is actually convoluted when your forming a single member entity that's not a sole-proprietorship. This means that it seems that the IRS won't recognize an LLC that's composed of just one member (in essence one owner). Consultation with an accountant will now be required. Plus I still need to pay a lawyer in the state of Washington (where I live), to register either as a foreign LLC here, as a primary LLC here, or if I need to at all. I get the feeling that a lot of small startups don't bother too much with making sure everything is kosher, and that possibly the states and the IRS don't worry about it too much either. But I do want to do this right. The question is how much is doing it right going to cost me and how long will it take?
- posted by Drew @ 3:16 PM