LLC creation

[keepngoal]

LLC creation is easy and you can find it online, even the states requirements and you can do it yourself. If you want the bare minimum needed for the state, IM me. Heck I'll c/p it here later tonight.

The more important doc is the operating agreement. That is worth a few bills for a lawyer to review or setup.

LLC no biggie. Operating Agreement, biggie.

 

[acgclone]

Setting up an LLC is not complex and easily handled by a CPA.

Now if you want shareholder or operating agreements, etc than a business attorney is preferable.

 

[amishclone]

Since we're discussing CPA'S, I thought it bears repeating: there are 3 kinds of accountants, those that can count and those that can't.

 

[keepngoal]

No formatting, but here is the basics needed to form an LLC with the State of Iowa. It may or may not be right for you that is what a professional does. I have used this exact form for 5 companies I own and/or manage. The details in the Operating Agreement are the most important (and can be done at a later time).

(header) CERTIFICATE OF ORGANIZATION
OF
YOUR COMPANY NAME, LLC

The undersigned person, acting as organizer of a company organized under the Revised Uniform Limited Liability Company Act, Chapter 489 of the Iowa Code, hereby adopts this Certificate of Organization, to be effective upon filling with the Secretary of State of the State of Iowa.

(header)COMPANY NAME AND ADDRESS

The name of the limited liability company is YOUR COMPANY NAME, LLC (the "Company"). The street address is HARD TO FIGURE OUT WHAT GOES HERE. The mailing address is SAME STORY, PROBABLY.

(header) REGISTERED OFFICE AND AGENT

The street address of the Company's initial registered office is PROBABLY THE SAME, HOWEVER MAYBE NOT. The name of the initial registered agent at such office is MOST LIKELY YOUR NAME.

DATE:
SIGNED:
PRINTED:

 

[Clonefan32]

To me, it depends on the complexity of what you are doing. If you are a sole member LLC, you can probably get by filing the Certificate of Organization by yourself. However, if you have a partner, want a Buy/Sell Agreement, etc., it would be worthwhile to speak with an attorney. There also can be some estate planning components to how you set up unit ownership.

As has been mentioned, make sure you are getting good tax advice as well. We often set up the legal entity but defer to the CPA/accountants to make any tax related elections.

 

[clonehome]

Set it up online by yourself. It literally takes 10 minutes.

This. Based on the OP's original reason for setting up the LLC. I've had an LLC for 10 years as my primary source of income and have never used a lawyer and used an accountant once (see below). You'll need a registered agent as part of your LLC filing with the Iowa Secretary of State -- Search Network Ltd in West Des Moines is a good choice, $100 for the first year then $75 per year after that. Then you need to do a biennial filing with the SOS, costs $30. Then do a Schedule C with your 1040 to report the income. Hire an accountant if you don't want to do all the Schedule C work yourself, including home office deduction, business use of car, etc. The first year I did the taxes myself but still hired an accountant to make sure I was accurate. Paid him several hundred dollars and his numbers were the same as mine. Figure out the Schedule C once and you'll have a template for future years. Good idea to hire an accountant if you are unsure about what expenses you can deduct, amortizing computer equipment, etc.

 

[isufbcurt]

This. Based on the OP's original reason for setting up the LLC. I've had an LLC for 10 years as my primary source of income and have never used a lawyer and used an accountant once (see below). You'll need a registered agent as part of your LLC filing with the Iowa Secretary of State -- Search Network Ltd in West Des Moines is a good choice, $100 for the first year then $75 per year after that. Then you need to do a biennial filing with the SOS, costs $30. Then do a Schedule C with your 1040 to report the income. Hire an accountant if you don't want to do all the Schedule C work yourself, including home office deduction, business use of car, etc. The first year I did the taxes myself but still hired an accountant to make sure I was accurate. Paid him several hundred dollars and his numbers were the same as mine. Figure out the Schedule C once and you'll have a template for future years. Good idea to hire an accountant if you are unsure about what expenses you can deduct, amortizing computer equipment, etc.

Just out of curiousity why did you pay someone to be a resident agent and not be the resident agent yourself if it's your LLC?

 

[GoCubsGo]

Just out of curiousity why did you pay someone to be a resident agent and not be the resident agent yourself if it's your LLC?

I'm guessing it's because he didn't consult with legal counsel.

 

[keepngoal]

I cant speak for anyone else's reasons, but for me it adds an extra layer of anonymity. Just makes it a bit harder for a pissed off customer/tenant/employee/crazy person looking to sue to find your home address.

sos.iowa.gov search disagrees.

 

[JY07]

Like keepngoal said, if it's just you all you really need is a bare bones certificate of organization form and the $50 or whatever it is and take it downtown to the SOS and you're set.

If at some point you do the side work full-time and it's more beneficial to be taxed as an s-corp, you can elect to do that as an LLC