Rangoth
Vyemm Raider
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According to this forum post, the sale of the lot which resulted in a loss would trigger a wash sale if rebought. I don’t know shit about that forum, just first google hit.
Investing General Discussion
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Blazin
Creative Title
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Yes, you can't repurchase shares after a recognized loss without the wash sale applying . The wash sale would only apply to those 100 shares that had a loss. The cost basis would carry over into the new purchase.
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Sanrith Descartes
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Sanrith Descartes
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Big Phoenix
Pronouns: zie/zhem/zer
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Asshat Foler
Log Wizard
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Burnem Wizfyre
Log Wizard
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Loser Araysar
Log Wizard
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Jysin
Bronze Baronet of the Realm
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I am starting a company and I want to know the right way to set up my LLC, and bank accounts so that if I get sued, they can’t come after me personally (i.e., pierce the corporate veil). I know this is a question that I can just google, but I know that people often leave shit out with those gay-ass articles they write to get clicks from unsuspecting noobs, and I don’t want to get fucked on this. I’m basically looking for the loopholes and gotcha’s that you only find out once you get sued.
But so far this is my plan:
* Start an LLC in Nevada or Wyoming (w/ a contribution agreement to transfer my computer and shit to it so it’s owned by the LLC so the LLC has assets)
* Get a Business Bank Account and only do company business with the funds
* Document all financial decisions
* Carry Business Insurance
* Keep at 10-20% of annual revenue in the bank to show full capitalization, i.e. don’t drain it to pay myself
* Pay myself as an employee and issue a W2 at the end of the year
* Issue 1099’s to contractors
Is there anything I’m missing?
But so far this is my plan:
* Start an LLC in Nevada or Wyoming (w/ a contribution agreement to transfer my computer and shit to it so it’s owned by the LLC so the LLC has assets)
* Get a Business Bank Account and only do company business with the funds
* Document all financial decisions
* Carry Business Insurance
* Keep at 10-20% of annual revenue in the bank to show full capitalization, i.e. don’t drain it to pay myself
* Pay myself as an employee and issue a W2 at the end of the year
* Issue 1099’s to contractors
Is there anything I’m missing?
Ao-
¯\_(ツ)_/¯
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It's real alright. Real retarded.
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Sanrith Descartes
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Getting an EIN for one. While not "required", if you are looking to maximize distance between your personal assets and the business, get an EIN.
Second, a sole member LLC cannot pay the owner a salary. It's one of the defining differences between an LLC and an S-Corp.
Third, some of the things you mention have nothing to do with the corporate veil (paying 1099's).
The idea of the corporate veil is to not mix personal and business transactions and funds. Its really that simple. Separate account, separate credit card (if you get one), don't such money between yourself and the company, document all contributions of cash and assets and all distributions. Do dont pay personal expenses with company funds/credit card.
Edit: also why are you state shopping for incorporation? Doing not in your home state will add a layer of complication (actually a couple of layers). Unless your state of residence is California, then you are pretty much fucked no matter what.
Sanrith Descartes
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An LLC can pay contractors and employees. It cant pay an owner a salary.
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thanks for the uber quick response. it will be a 2 member llc, yes we will get an ein, and arent sure if we go s corp or c corp, any suggestions?
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Sanrith Descartes
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Ok, a multi-member LLC is taxed as a partnership. A partnership, while still a pass through entity, has to file its own separate tax return each year, unlike a sole member LLC.
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