Investing General Discussion

Cad

Cad

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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.
 
TJT

TJT

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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?
Click to expand...
Starting a consultancy?
 
Foler

Asshat Foler

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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?
Click to expand...
Dude this is the investing thread. There’s literally a business owners thread for questions like this. PLEASE respect your fellow forum goers and try to stay ON TOPIC.

Thank you for your attention to this matter.
 
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Gravel

Gravel

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Sounds about right. Granted, it's not the same metric you're talking about, but I'm always checking IWM to see how it's doing. It's basically always flat. It's why I feel like I need to dump the rest of the US economy and go with the highest proportion of tech possible. Because everyone else is sucking shit.
 
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Haus

Haus

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Gravel said:
Sounds about right. Granted, it's not the same metric you're talking about, but I'm always checking IWM to see how it's doing. It's basically always flat. It's why I feel like I need to dump the rest of the US economy and go with the highest proportion of tech possible. Because everyone else is sucking shit.
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And it's not just "tech", you have to go into the top tech performers as there are a more than a couple of S&P tech stocks that when you take monetary devaluation into account are flat or negative for the last year.
 
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Lambourne

Lambourne

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ChatGPT launched in November 2022 and stock market has been all about AI since. Tech as a percent of the total S&P is around dot-com boom levels.

There's also been a massive increase in passive investing over the last few years which works as a multiplier (since the money that goes into a market index fund gets spread around by market cap, so the big get bigger). The standard advice of "invest in a broad index fund so you diversify" now still leads to three companies making up 20% of your portfolio.


 
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Foler

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Lambourne said:
ChatGPT launched in November 2022 and stock market has been all about AI since. Tech as a percent of the total S&P is around dot-com boom levels.

There's also been a massive increase in passive investing over the last few years which works as a multiplier (since the money that goes into a market index fund gets spread around by market cap, so the big get bigger). The standard advice of "invest in a broad index fund so you diversify" now still leads to three companies making up 20% of your portfolio.


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Blazin Blazin do you have any thoughts on this
 
Big Phoenix

Big Phoenix

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Haus said:
We are entering the stage where large corporations are being treated like vassal states that have to pay tribute to the empire....
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Considering how much of their money is made overseas or via foreign labor yet they rely on US dominance for protecting their IPs and logistics, they very much should.
 
Haus

Haus

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Big Phoenix said:
Considering how much of their money is made overseas or via foreign labor yet they rely on US dominance for protecting their IPs and logistics, they very much should.
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I'm certainly not saying they shouldn't. Being a US company benefits them in many ways, and unlike some countries we won't arbitrarily nationalize them. I just find it one more step towards the "corporatocracy" dystopia model. At some point a large multinational will be big enough that it will just say "no" to a dominant government and the government won't really be able to do shit, but that hasn't quite happened yet. Part of me was wondering if Tim Cook might just stare at Trump and say "Well, let's see how your people like their iPhones costing 3x as much and every box having a picture of you on it saying "This is who to blame"." But I guess Tim just isn't cut from that kinda cloth. heh
 
Khane

Khane

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Uhhh.... Are you under the impression that isn't how this country has always worked?
 
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