questions about LLC

[DancingQueen]

I know that everyone recommends setting your business up as an LLC.
I'm just learning about it and how it works and I'm a little confused.
as a small business owner - with only myself as an employee of the business - is an LLC the way to go?
when it comes time to file my taxes - do I still get to file with my spouse or do I have to file seperately?
I am so overwhelmed - and the person doing our taxes this coming year is doing it for the very first time so I just want to know what I'm talking about and I'm confused.

Oh and I'm going to be getting an EIN - which should I do first? LLC or EIN or does it not matter?

[newtodaycare22]

In order for your parents to claim the child care expenses, you either have to give them your personal Social or an EIN for your business. I created an LLC first. Then, I went to the IRS website and requested a EIN number. I am the owner and only employee as well.

[legomom922]

I have a EID, but nor a LLC..what is the benefit of having that?

[tenderhearts]

I hope others answer this because I've thought about doing it too and I'm really confused. Like how you pay yourself and how much money you have to keep in the LLC business account and how all that works, filing taxes for the business and personal, it's all really confusing to me too. Hope someone has some more answers.

[legomom922]

The only thing that I had ever heard of was that there is more fees, taxes and regulations if you have a LLC and that's probably why I decided not to do a business name.

[Lilbutterflie]

I am fairly new to this, too... so I'm glad this thread was created! I have a small daycare that just started by watching my nephews and nieces. I'm filing under my social right now. What are the benefits to having an EIN other than it just keeps the tax-reporting separate? Do I have to get an EIN?

I run my daycare as a sole proprietorship. Having an LLC is a good idea but you don't have to! Basically the LLC separates your personal property from your business so that if you get sued they can only take what your business has, not what you personally have. It is different from an EIN. Your EIN is a number that parents use to report their tuiton at tax time, some providers may use their SSN. I choose to use and EIN so I don't have to give my clients my SSN.

Hope that helps people.

[Chickenhauler]

Originally Posted by Unregistered

I run my daycare as a sole proprietorship. Having an LLC is a good idea but you don't have to! Basically the LLC separates your personal property from your business so that if you get sued they can only take what your business has, not what you personally have.

And when the business assets run dry, then the come after YOU personally, since you were the person who screwed up.

The scenario you describe will work with an employee who screws up, but not when the worker is also the owner.

Seen many truckers think they were covered by an LLC protection, get in a wreck, only to discover as the driver, they were also personally (financially) liable.

Best protection you can have is a large insurance policy. If you're ever sued, the insurance company will send a lawyer to protect their interest (financial payout).