One more message, then I'll shut up

Hi,

Is there a tricky way to make a deal if your business is a registered LLC, as ours is. The I.R.S. views an LLC as a partnership, as I'm sure you're aware.

What I mean is, have the LLC buy the car, wait, there'd be no advantage to that. How about if I buy the car, and then the LLC pays me for displaying advertising on it--no, that wouldn't work either. But you see what I'm getting at.

Maybe being an employee of my own corporation is the way I should have structured my business. What do you think?

Best,

-Boyd

Boyd -

> Is there a tricky way to make a deal if your
> business is a registered LLC, as ours is.
> The I.R.S. views an LLC as a partnership, as
> I'm sure you're aware.

Are you sure the IRS views an LLC as a partnership? Don't you mean they view an LLP as a partnership? An LLC is similar to an S Corp. with all the benefits and none of the disadvantages as far as I can tell. Each state has different laws for LLCs but in Ohio, an LLC is not required to have officers where an S Corp. is. S Corps are allowed to have only 35 shareholders, (I think that was just increased but I'm not sure of the number), and none of those shareholders may be an entity such as another corporation. It must be an individual. With LLCs you can have unlimited shareholders and any entity, such as another LLC, S Corp., C Corp., etc. may own shares in the LLC.

> Maybe being an employee of my own
> corporation is the way I should have
> structured my business. What do you think?

If you are an officer in your company you are automatically an employee of the company as well as a shareholder.

BTW, did you know that you can create an LLC to hold your assets? The short version is that you would place your assets in trust and have the LLC as the beneficiary of the trust. You can read more about this interesting way to protect your assets in Robert Allen's "Multiple Streams of Income."

Please keep in mind that I'm not a corporate attorney. I was involved with an S Corp. as president and one of the shareholders. I've been looking into LLCs as a better way to go. The facts that I stated about LLCs are pretty general but I'm in Ohio so that's what I based this on. Your mileage may vary.

Rick Smith, "The Net Guerrilla"

Hi,

So far I'm very glad that we set up shop as an LLC. For anyone else who's interested, NOLO Press sells software and books that make it easy to create your own custom-fitted LLC.

Best,

-Boyd

> Boyd -

> Are you sure the IRS views an LLC as a
> partnership? Don't you mean they view an LLP
> as a partnership? An LLC is similar to an S
> Corp. with all the benefits and none of the
> disadvantages as far as I can tell. Each
> state has different laws for LLCs but in
> Ohio, an LLC is not required to have
> officers where an S Corp. is. S Corps are
> allowed to have only 35 shareholders, (I
> think that was just increased but I'm not
> sure of the number), and none of those
> shareholders may be an entity such as
> another corporation. It must be an
> individual. With LLCs you can have unlimited
> shareholders and any entity, such as another
> LLC, S Corp., C Corp., etc. may own shares
> in the LLC.

> If you are an officer in your company you
> are automatically an employee of the company
> as well as a shareholder.

> BTW, did you know that you can create an LLC
> to hold your assets? The short version is
> that you would place your assets in trust
> and have the LLC as the beneficiary of the
> trust. You can read more about this
> interesting way to protect your assets in
> Robert Allen's "Multiple Streams of
> Income."

> Please keep in mind that I'm not a corporate
> attorney. I was involved with an S Corp. as
> president and one of the shareholders. I've
> been looking into LLCs as a better way to
> go. The facts that I stated about LLCs are
> pretty general but I'm in Ohio so that's
> what I based this on. Your mileage may vary.

> Rick Smith, "The Net Guerrilla"

Boyd -

> So far I'm very glad that we set up shop as
> an LLC. For anyone else who's interested,
> NOLO Press sells software and books that
> make it easy to create your own
> custom-fitted LLC.

I haven't done it yet but it looks to me to be the best way to go. I'll be incorporating Guerrilla Success as an LLC soon.

I didn't know Nolo Press had books and software on the topic. I should have figured. I did some research on the Net and found some guy in California who had an LLC kit for $149. The guy's an attorney and the kit's pretty good. He "customizes" it for your state when you order so I got the Ohio version since that's where I am. The state documents come as PDFs so all you have to do is print them out and fill them in while following the step-by-step guide. I'm sure the Nolo kit is as good and it's probably cheaper.

Rick Smith, "The Net Guerrilla"