Getting Closer - The Formation of my LLC
So this week has been a big one for me! I filed for my LLC on Friday and thanks to the miracle of the internet and online filing, I now own my very own, shiny new business! So exciting, right?!
Well, unfortunately, I have a terrible habit of jumping into things feet-first without realizing what I'm actually getting myself into. Such is what happened with the LLC...and no one was surprised...[insert crying face]
So what do you need to know before filing your own LLC?
1. You have to pay taxes! (Shocking!!)
Depending on what kind of LLC you file, your tax mileage may vary. I filed as a one-member LLC, so fortunately I only have to pay taxes like I would as an individual every year. I think I got lucky on this one, considering I didn't know how LLCs work.
2. You have to file for an EIN, even if you're a one-woman show.
That's Employer Identification Number for you guys wondering. This isn't really very important for me because I'm not going to hire employees, but I have to have it to open a business bank account.
3. You have to have a state sales tax permit.
Compared to everything else, this was pretty simple to do and self-explanatory. What I didn't know is that the state would really like it if you payed your sales taxes quarterly. *Cue brain explosion* Even if you don't make any sales in a quarter, you still have to call in and say you didn't make any money.
There's more intricacies I didn't list, like how to file tax forms and stuff, but these are the biggest things to keep in mind. I should have done my research before I decided to file, but of course all I could see was a big neon sign saying "GET YOUR OWN COMPANY".
So the long and the short, don't be like Paige! :-)
But seriously. Know what you're getting into. It's way cool and puts me one step closer to have my book published and taken seriously by vendors, but it's a much bigger undertaking than I thought it would be.
Stay tuned for this week's blog post and watch for more exciting misadventures of Paige the Author!
