setting up and running a LLC in TN
deodiaus
report before 4 months after the close of the fiscal year.
Can my fiscal year year correspond to the calender year. When does the
usual fiscal year end? BTW, I became a LLC on 10/07/08. BTW, I started
getting paid from my first client on 09/25/08, so should I claim those
previous expenses as a sole proprietorship?
Do I need a Shelby & Germantown business license if I don't deal with
customers directly? I am a B2B and thought something applies to someone
selling computer and repairs!
2) I am rethinking about the need to work as an LLC. I have seen some
older postings about double taxation issues, and the fact that an LLC does
not really shield you from negligence lawsuits, especially errors and
ommissions.
Does anyone have any legal documents, references, old posts on www.deja.com
or urls for me to refer?
Charles Calvert
wrote in <gg5k58$s1c$1...@aioe.org>:
>1) My paperwork from the TN Sec of State says that I have to file a annual
>report before 4 months after the close of the fiscal year.
>Can my fiscal year year correspond to the calender year.
Yes.
>When does the usual fiscal year end?
There is no standard, per se. The federal government runs from Sept.
1 to Aug. 31, but many small companies just use a calendar year.
>BTW, I became a LLC on 10/07/08. BTW, I started getting paid from my
>first client on 09/25/08, so should I claim those previous expenses
>as a sole proprietorship?
Yes. You can't claim expenses or income for a company that didn't
exist. However, you should talk to an accountant about this to see if
there's any way to work around that. If not, you'll need to file
estimated quarterly taxes for that period.
> Do I need a Shelby & Germantown business license if I don't deal with
>customers directly? I am a B2B and thought something applies to someone
>selling computer and repairs!
That's specific to your county or incorporated city. Tennessee state
law may apply as well. Check with your accountant and attorney. You
can also check with the government office responsible for issuing such
licenses.
>2) I am rethinking about the need to work as an LLC. I have seen some
>older postings about double taxation issues, and the fact that an LLC does
>not really shield you from negligence lawsuits, especially errors and
>ommissions.
No type of entity will shield you from that if you're an officer/owner
of the entity and are directly involved in the work. If you grow
large enough to have employees performing work that is not under your
direct supervision, then you may get some benefit. Remember that
corporations were not conceived to shield the executives from personal
liability, but rather the stock holders.
>Does anyone have any legal documents, references, old posts on www.deja.com
>or urls for me to refer?
Legal documents are of dubious utility, as the law varies from
jurisdiction to jurisdiction. Your best bet is to find a good
accountant and a good attorney who have some expertise in small IT
businesses, or at least small businesses. As Jerry said, they don't
cost you money, they save you money.
As an example, my accountant has answered several quick questions for
me recently regarding sales tax in nearby jurisdictions. I sent him
an e-mail message and had a response in less than an hour. All
together it took five minutes. If I'd had to wade through the
information published by the relevant government offices, it would
have taken me at least an hour. If I'd gotten it wrong, it would have
cost me quite a bit of money.
--
Charles Calvert
Moderator - alt.computer.consultants.moderated
Submission Address: ac...@celticwolf.net
Contact Address: accm...@celticwolf.net
Jerry Stuckle
> 1) My paperwork from the TN Sec of State says that I have to file a annual
> report before 4 months after the close of the fiscal year.
> Can my fiscal year year correspond to the calender year. When does the
> usual fiscal year end? BTW, I became a LLC on 10/07/08. BTW, I started
> getting paid from my first client on 09/25/08, so should I claim those
> previous expenses as a sole proprietorship?
You didn't have a company yet, so you can't claim income for that company.
> Do I need a Shelby & Germantown business license if I don't deal with
> customers directly? I am a B2B and thought something applies to someone
> selling computer and repairs!
Ask a local attorney. None of us are versed in the laws of your
jurisdiction.
> 2) I am rethinking about the need to work as an LLC. I have seen some
> older postings about double taxation issues, and the fact that an LLC does
> not really shield you from negligence lawsuits, especially errors and
> ommissions.
> Does anyone have any legal documents, references, old posts on www.deja.com
> or urls for me to refer?
>
Ask an attorney. Again, no one here is versed in the laws of your
jurisdiction.
If you're going to be in business, you need two people. One is an
attorney, the other is an accountant. Both of their jobs are to save
you money, not cost you.
And if you can't afford advice from them, you can't afford to be in
business. Get a job as an employee. You can be sure any decent
employer WILL have both.
--
==================
Remove the "x" from my email address
Jerry Stuckle
JDS Computer Training Corp.
jstu...@attglobal.net
==================
Jerry Stuckle
> On Fri, 21 Nov 2008 00:23:34 -0600, "deodiaus" <deod...@hotmail.com>
> wrote in <gg5k58$s1c$1...@aioe.org>:
>
>> 1) My paperwork from the TN Sec of State says that I have to file a annual
>> report before 4 months after the close of the fiscal year.
>> Can my fiscal year year correspond to the calender year.
>
> Yes.
>
>> When does the usual fiscal year end?
>
> There is no standard, per se. The federal government runs from Sept.
> 1 to Aug. 31, but many small companies just use a calendar year.
>
Close - October 1 to September 30 (think quarters).
And BTW - my fiscal year matches the calendar year, even though I didn't
start the company on Jan 1.
Charles Calvert
<jstu...@attglobal.net> wrote in <gg7ud6$e8i$1...@news.motzarella.org>:
> Charles Calvert wrote:
>> On Fri, 21 Nov 2008 00:23:34 -0600, "deodiaus" <deod...@hotmail.com>
>> wrote in <gg5k58$s1c$1...@aioe.org>:
>>
>>> 1) My paperwork from the TN Sec of State says that I have to file
>>> a annual report before 4 months after the close of the fiscal year.
>>> Can my fiscal year year correspond to the calender year.
>>
>> Yes.
>>
>>> When does the usual fiscal year end?
>>
>> There is no standard, per se. The federal government runs from Sept.
>> 1 to Aug. 31, but many small companies just use a calendar year.
>
> Close - October 1 to September 30 (think quarters).
Crap. I remember being short of hours every August (but not
September) when the budget ran short when I was working on a
government contract a number of years ago. That must have skewed my
memory.
> And BTW - my fiscal year matches the calendar year, even though I
> didn't start the company on Jan 1.
Right. I started mine in the month of March, but still use a calendar
year.
Robert W. McAdams
Setting up an LLC on your own is, IMO, a bit like performing an
appendectomy on yourself if you're not a trained doctor. There are a
number of legal and accounting issues you need to think about when
setting up an LLC, and some of those issues vary from state to state.
So you need to either acquire all of the needed expertise yourself or
utilize the services of a qualified professional who already has that
expertise (i.e., a CPA or tax lawyer who is familiar with TN law). I'd
recommend that you make an appointment with one and ask your questions
there.
Bob McAdams
Fambright
Jerry Stuckle
> On Fri, 21 Nov 2008 22:28:19 -0500, Jerry Stuckle
> <jstu...@attglobal.net> wrote in <gg7ud6$e8i$1...@news.motzarella.org>:
>
>> Charles Calvert wrote:
>>> On Fri, 21 Nov 2008 00:23:34 -0600, "deodiaus" <deod...@hotmail.com>
>>> wrote in <gg5k58$s1c$1...@aioe.org>:
>>>
>>>> 1) My paperwork from the TN Sec of State says that I have to file
>>>> a annual report before 4 months after the close of the fiscal year.
>>>> Can my fiscal year year correspond to the calender year.
>>> Yes.
>>>
>>>> When does the usual fiscal year end?
>>> There is no standard, per se. The federal government runs from Sept.
>>> 1 to Aug. 31, but many small companies just use a calendar year.
>> Close - October 1 to September 30 (think quarters).
>
> Crap. I remember being short of hours every August (but not
> September) when the budget ran short when I was working on a
> government contract a number of years ago. That must have skewed my
> memory.
>
Probably not. Often times they don't plan to spend extra money in
September because they know they'll run out sometime in August, anyway.
>> And BTW - my fiscal year matches the calendar year, even though I
>> didn't start the company on Jan 1.
>
> Right. I started mine in the month of March, but still use a calendar
> year.
--