Investing General Discussion

Cad

Cad

scientia potentia est
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TomServo said:
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?
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Its a multifactorial analysis in general there's not any one magic thing that pierces the veil it's a totality of circumstances.

Treat the company's business like the company's business, keep everything separate, never use company funds to pay for personal things or vice versa, and you'll be fine.

** I don't do tax stuff so the tax implications of each structure are beyond my advice.
 
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Sanrith Descartes

Sanrith Descartes

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Sole proprietorship, Sole member LLC, Multi-member, S-Corp and C-Corp all have specific characteristics (legal and tax). The structure to use depends on individual factors of both the business model and the ownership.
 
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U

Unidin

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One thing you'll want to think about is if you're doing any lending is that most banks will require a personal guarantee if you're trying to get a loan. So while the business may remain a separate entity, if you get a loan or credit card and it defaults, you'll be personally responsible. It's not until businesses tend to get bigger that you can guarantee the loans with the business alone.
 
Rangoth

Rangoth

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Sanrith Descartes said:
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.
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Wyoming in particular allows you to hide the owner of the LLC/Corp.
 
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