LLC in California

Discussion in 'Starting a Business' started by iPenguin02, May 21, 2013.

  1. iPenguin02

    iPenguin02
    uix_expand uix_collapse
    New Member

    Joined:
    May 21, 2013
    Messages:
    3
    Likes Received:
    0
    Hello everyone, I'm interested in starting my own llc to start selling items on ebay. With hopes of eventually moving off ebay to avoid posting fees and what not.
    I have been researching and lot of the resources are confusing and nolo is a little confusing to a Marine with no business experience, but I do have the dedication and motivation to make it work. I have a lot of questions to clarify before I go full force.

    I understand I have to register my business with my Secretary of state office. What if the business name is taken but used in a different type of business? How do I find out what names are taken?
    What are every single paper work I would need to be successful? Is there an annual fee for all the licenses I would need? I was thinking about legalzoom but I read its a lot more cost efficient to do everything on my own.

    If i named myself as the registered agent would type of legal documents would i need to ensure i don't run Into any legal issues like being sued.
    Since I'm not going to rent an office space should I register my business under my house address or a PO Box?

    How does Tax work if I am the sole proprietor? From what I've read I file it with my normal taxes.
    What happens if I do not make any money from the business in the year? Would I still have to pay for having the business open? From what I've read we have to submit our earnings every quarter what exactly does that entail?

    I heard I can obtain a EIN for free is that true?

    Any other advice would be greatly appreciated, Things I might need or advice on successfully running a business. Thank you and sorry for do many questions.
     
  2. ArcSine

    ArcSine
    uix_expand uix_collapse
    Member

    Joined:
    Jun 2, 2010
    Messages:
    233
    Likes Received:
    187
    Re a selection from your questions:

    • Talk with someone at CA's Secretary of State's office about the name. You won't be able to use the taken name; the fact that it's being used in a different kind of business is irrelevant. But the SOS should have some tips on how to research which names are available.

    • If you are a sole proprietor, you'd prepare a Schedule C with your federal return (1040). On Schedule C you'll report your sales revenues and your business expenses, with the net difference (net profit or net loss) then carrying over to page 1 of your 1040. The same would be true if you form an LLC and you are the LLC's sole owner. A one-owner LLC is treated (for income tax purposes) as a sole proprietor, and so again you'd report your business's sales, expenses, and net profit / loss on a Schedule C, which would be included with your personal return.

    • Even if your business shows a loss you should still file the Schedule C with your return. The loss from the business could possibly reduce the total tax you pay on income you receive or earn from other sources.

    • You can obtain your EIN from the IRS at this site. Start there, read the info, then follow the link to get started. If I remember correctly, though, IF you're going the LLC route instead of sole proprietor, you'll want to have your LLC officially formed with the Sec of State before you obtain its EIN from the IRS site.

    I'm sure some others can chime in on some of your other questions. In any event, keep doing your homework. I hope it all goes very well for you, and congrats on the new biz!
     
    • Like Like x 1
  3. iPenguin02

    iPenguin02
    uix_expand uix_collapse
    New Member

    Joined:
    May 21, 2013
    Messages:
    3
    Likes Received:
    0
    I been doing some research into sole proprietor, thanks for the suggestion.

    I'm reading different things from different websites can you help me clarify.

    According to most websites i've read if i were to do business under a name other than my own i have to file a fictitious business name. Some sites state i have to file DBA (Doing Business As). I cannot find a cost some sites indicate $26 for the FBN, and you have to refile every 5 years? Is there an annual fee?

    How do i check if FBN or DBA are not taken? For FBN in CA i have to take a newspaper article out stating i'm starting a business for 4 weeks? How does that work.

    I also read i need a license to work from home or a permit? What other permits would i need in LA County? and Cost of all this.

    What do i have to look for when looking into a business bank account? Why not just use a separate personal account?

    I do appreciate this suggestion, but i don't know start up cost and if there are annual fees. I do know that i have to file my taxes under like a 1040 and the business under a schedule C. I can't find a percentage of tax taken from me from my earnings.

    did i miss anything
     

Share This Page