51–60 of 114 posts
Earlier quoted context omitted.
Note that a single-person LLC can file taxes as a pass-thru entity, which is essentially the same as a sole proprietorship. You do still need to separate your finances/accounts/etc tho.
Being a single-person LLC usually doesn't give you any of the legal advantages of having an LLC in case you get sued.
It’s literally the name of the thing, the two L’s stand for “limited liability”
It's also worth noting that you don't need an LLC to "channelize your creative endeavors". You can take money from other people for goods and services you provide without any legal structure behind it. IRS has forms to report such income (and related business expenses). A step-up is a DBA registration in your city hall. It's still just you, nothing changes from point of view of IRS, you can just use a name for your b…
Earlier quoted context omitted.
I am not a lawyer. But my understanding is that it does shield your personal finances to some degree.
Also not a lawyer but it seems unlikely. You can’t create a legal shell just to shield yourself from liability. There needs to be an actual entity. Or not, again not a lawyer.
So, for instance, document the seed money to the LLC, and any other money you put in, carry on the books. Similarly, pay yourself a salary or if doing “equity draw” again keep it full documented.
Never pay for personal things with company funds.
(The page includes links to lots of HN discussions in this area; depending on how this discussion goes, I might add it as well.)
So we eventually scrape the project and I move on to a new website selling electronics. I signed up for a new Stripe account, but immediately got an email from stripe saying:
"our banking partners prohibit us from helping with payments associated with a business we've had to reject previously."
Has anyone faced this or had any recourse? This was 4 years ago and now I am pursuing building a SaaS using Stripe Connect and using Stripe Atlas. Whenever I reached out to Stripe back then, only response I got was decisions are final.
Are all those doors closed for me since I made a stupid mistake years ago?
Earlier quoted context omitted.
Note that a single-person LLC can file taxes as a pass-thru entity, which is essentially the same as a sole proprietorship. You do still need to separate your finances/accounts/etc tho.
Being a single-person LLC usually doesn't give you any of the legal advantages of having an LLC in case you get sued.
In practice this protection isn’t worth as much as it is for larger businesses because, for example, any bank lending to a new single person LLC will require a personal guarantee anyway, and most single person LLC don’t have a lot of situations where they might incur a life destroying liability, like an accident in a warehouse or something, but that protection still definitely exists for single person LLCs.
Earlier quoted context omitted.
Note that a single-person LLC can file taxes as a pass-thru entity, which is essentially the same as a sole proprietorship. You do still need to separate your finances/accounts/etc tho.
Being a single-person LLC usually doesn't give you any of the legal advantages of having an LLC in case you get sued.
So an example here might be that you were working for a client and work wasn't fully completed on time. You made a good faith effort to get the work done, so while the company you were working for might be entitled to compensation from your LLC they can't come after your house.
Finally, let me caveat all this by saying that the standards for "piercing the corporate veil" vary by state and as always you should consult with a lawyer before making a final determination. Also, another work around is to form a multi-member LLC and hold formal annual meetings. This is normally enough for most states to consider the LLC as a separate distinct entity and prevent piercing of the corporate veil.
So 4 years ago, me and a couple of partners decided to start an online website selling vaporizers. Our supplier told us he was using Stripe and so we applied for a seller account. I stupidly put my personal information to get up and running quickly. In the next few days, I get an email from Stripe that vaporizers are prohibited and they can't accept the payments. We were surprised but moved on since we couldn't do an…
Earlier quoted context omitted.
Note that a single-person LLC can file taxes as a pass-thru entity, which is essentially the same as a sole proprietorship. You do still need to separate your finances/accounts/etc tho.
Being a single-person LLC usually doesn't give you any of the legal advantages of having an LLC in case you get sued.
Best advice for anyone, especially a foreigner without SSN/ITIN, is to get a lawyer. Note for all foreigners, IRS changed their rules to get an EIN 5/10/19 and this is significantly delaying new foreign owned/controlled businesses.