Okay guys, need to make some extra income.
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I want to start doing some design work/consulting on the side. I have 14 years experience in Mechanical Design (specifically SolidWorks).
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How do I go about setting up an "LLC" / business structure to get this thing started? Pros and cons about doing this type of thing? I have a lead on an assest from a business that went backrupt (read; powerful Computer with Software and licenses installed already)
Discuss:
There are these dudes in Panama that can help you out...
My suggestion is that if you are setting up a business, you will need to get a bookkeeper. Generally they will be able to take care of all the requirements. At least ours did. It's no big deal.
cwh wrote: My suggestion is that if you are setting up a business, you will need to get a bookkeeper. Generally they will be able to take care of all the requirements. At least ours did. It's no big deal.
How are the pay arrangements for the "bookkeeper" structured and priced?
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I would expect an upfront/fixed fee for setting up the paperwork/statefilling etc., but I intend to keep this small (at least in the beginning stages) and wouldn't want the $$ burden to carry a bookkeeper until It grew big enough to support that.
NOHOME wrote: There are these dudes in Panama that can help you out...
LOL
Setup for an LLC is searching for the .gov website for your state and paying the fee and picking a name. Easy.
Also, its one extra form on your taxes if the LLC does nothing (you can file it as part of your personal taxes if you choose). But do talk to an accountant about what they recommend.
Our bookkeeper bills by the hour. Not much involved in getting you set up. QuickBooks and some basic advise. Our's bills at 50.00 / hour, very much worth it to avoid unhappy phone calls.
If you have a lawyer that you can take to lunch and bend there ear I recommend it. Second thing I to retain tge services of a cpa. They get paid by the hour. Speak to them about your options. There are different types of LLCs. You need to think about risk and tax implications.
Some are better than others.
Regarding the acquisition of assets. There are ways to do this that can have tax advantages as well.
Tge last thing is once you set up the business entity keep excellent records of every transaction. I use Quickbooks professional. It worked very well for me but you have to get In the habbit of sitting down every day and taking care of things. Let thing slip and things get foggy quick.
Good advice guys, any other things to consider?
Are you a licensed engineer? Being able to PE stamp your designs might be useful, at least for some industries/clients.
The outfit I work for is a P.C. and not a LLC, but I'm an employee and not an owner, so the distinction doesn't matter to me much.
Make sure the side work isn't in competition with your day job.
Don't go chasing waterfalls on this. You need to keep a low profile. You gotta creep, creep.
EDIT; Sorry, I was really sleepy when I posted this,and sometimes my jokes are only funny to me.
Another thing to think about is liability insurance. If you are designing things for others and they have an issue caused (whether real or perceived) by your item they may try to seek compensation.
Also, think about how much time you will spend on non-billable things like marketing (trying to find work), paperwork, collecting your fees, etc.
NOHOME wrote: There are these dudes in Panama that can help you out...
The US is actually easier to incorporate a business in.....much easier.
This is relevant to my interests. I have a detail side gig on the weekends. I don't make a ton of money with it, but I don't want the tax man after me. Would it be a good idea for me to have an LLC? I figure I could write off expenses and gas. But you kind folks are much smarter than me.
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