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Forming an LLC in Ohio


madcat6183
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Okay, the time has come for me to start some serious business ventures on the side, one really, but wanted to see what others have done.

 

Talked to my CPA, advised setting up an LLC, seperate bank account, and going that route.  It's just me, no one else, no family involvement, nothing more than me.  Just want to protect my personal assets and family. 

 

I was just going to go with Legalzoom, or something similar, but after looking up some info it appears forming an LLC in OH is a joke, costs $175 total for name registration and actually forming the LLC.

 

Is that right?  I mean is it that simple?  I am not trying to do anything crazy like payroll or anything, just using it as protection.  Oh and to get some can's......

 

 

This is the site I have been using, and from what I can tell, it's beyond easy and actually pretty quick.  I even found a template and did my own operating agreement in like 2 minutes.

 

http://www.nolo.com/legal-encyclopedia/ohio-form-llc-32066.html

 

Bowdog, Pauly, can you guys advise?

 

I plan to be taking some business, personal checks, and possibly credit/debit cards, but prefer my main method to be cash......  If you get me.  Just want to cover materials and taxes with my intake and pay as little in taxes at the end of the year as possible. 

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Fuck Legalzoom.

That is kinda my take, like they are charging 100+ for nothing.  Plus charging for an EIN should be illegal, you can do it in 5 mins automatically on the internet or phone.  Its automated, but Legalzoom wants to charge you, wtf.

 

I just talked to my local CU and all they require is the LLC docs from the state and copy of operating agreement to open an account.  So uh yea, looks like it's that easy.  Going to send in the paperwork tonight. 

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http://www.sos.state.oh.us/sos/Businesses/BusinessInformation/starting.aspx

 

Best of luck.  

 

Hold back 30% off the top for taxes (two years ago it was 20%.  Last year with Obamacare it went to 25%.  This year I apparently should have held out closer to 30%.   So glad I can bust my ass so that others can sit on theirs). 

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So that was kind of my plan, I mean I only plan to "make" 500-1,000 in income this year before expenses, mileage, and taxes.  The business account would probaly never have more than 500 bucks in it for very long before I needed supplies anyways.  It's more of a side business that I don't plan to make much on at all and I actually had planned on paying 50% in taxes so if it's only 30% I don't even care.  We're already in a super high tax bracket as it is(in my opinion that is lol), and with having twins, all the medical bills, childcare already, I can't see it being any issue,

 

I also have my 8-5 which covers my taxes easily in what my return is, so guessing no big deal.  

 

R1Buttplugger sent me some really good info too, so appreciate everyone chiming in.  From the sounds of it, everything I was doing is right in line.  

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Shit one more thing I totally forget and wanted to ask R1 anyways;  #4 on that website, which I've been using daily to get forms and read, Contact the Ohio Dept of Taxation.

 

Do I even need to do that?  I ask because my CPA basically said at tax time he's going to add 1 more Schedule to my taxes and that's about it.  I mean I get the 30%, but if that's the most I can pay in taxes on it, then so be it.  I don't need the Dept of Taxation to tell me that, if that's the most, cool, I am fine with that.

 

Also, I have healthcare though my full time job, so not sure how that equates, but that's why I have a tax dude handle my shit.  I don't care to keep up on all that anymore.  

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I believe you still need to get your vendors license and pay any taxes you've collected via the http://www.business.ohio.gov/ site.  In the end I think your CPA is going to show on your additional schedule that you've paid the taxes is all.

 

If in doubt, just call the ohio taxation office and ask them.  I'm sure they'd be able to tell you exactly what you need and then there's no guessing.

Edited by r1crusher
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FYI...since you're providing a service (assuming this is for your detailing business) the state has some weird shit about what's taxable and what isn't.  In most cases your actual service isn't taxable but the products you might use during that time might be.  I think there's a basic guide that outlines what's taxable and what isn't.

 

Example...computer repair services...not taxable (as I understand it) but any parts you install during that service...taxable.  Or something like network cable installation...ALL taxable...service and material.  The rules are not simply cut and dry so.

 

Like I said previously...it's easy to just make a call and get the answer right from the taxation offices.

Edited by r1crusher
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FYI...since you're providing a service (assuming this is for your detailing business) the state has some weird shit about what's taxable and what isn't.  In most cases your actual service isn't taxable but the products you might use during that time might be.  I think there's a basic guide that outlines what's taxable and what isn't.

 

Example...computer repair services...not taxable (as I understand it) but any parts you install during that service...taxable.  Or something like network cable installation...ALL taxable...service and material.  The rules are not simply cut and dry so.

 

Like I said previously...it's easy to just make a call and get the answer right from the taxation offices.

I just looked into it after taking your advice.  You're 100% right.  Basically the service isn't taxable, the wax is, the protectant is, etc.  So essentially relating it to your work, same kind of thing.  In my case the costs of product and the "time" it would take for that product, it would be way too much work to try to break that down on paper.  Especially since this is supposed to be a mainly cash business..........Invoices are only provided to businesses some are not exterior or full details so no tax there, mainly because I use so little product I don't even care.    There are a few one off's and some company checks, more about that then anything. 

Edited by madcat6183
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