Can someone tell me how set up a business cheaply?

[Hawkeye-X]

I am only looking to form a business to do computer repair for the disabled community (There is a high need for specialized equipments) - so I am interested in setting up a LLC (which I understand is the cheapest way to form a business).

[hlthe2b]

1. Go to the Colorado Secretary of State's site...

I'm working on this now and am told it is very easy (for an LLC--not so much for an S-corp)

[Rosa Luxemburg]

2. sole proprietor

http://en.wikipedia.org/wiki/Sole_proprietorship

[supernova]

3. Check your state's Sec of State

web site.

THey will tell you:

1) The differences between all the types of companies you can form
2) What forms you need (and provide d/l
3) What fees are required for registering
4) What to do to file and set up for business

[thunder rising]

4. You can start just by starting..DBA (doing business as). Sell no products, service only and there

is generally no problem with any state. The filing fees if any for a service company are minimal.

I'm not sure why you would need an LLC. The DBA declaration is made on your next tax filing.

[Tace]

5. Cheapest Way Is To Be Sole-Proprietor

"Hawkeye-X Disabled Computer Repair."

It may not be the best for your taxes, but that depends on your personal situation, and how much income you generate. Unless it's a lot, it may be best to just operate as an individual.

That's my understanding, anyway.

[Ellipsis]

6. Heres a couple links... One for bookkeeping and some special needs resources. Enjoy.

If you can get/afford a "good" bookkeeper for a couple hours a month you'll be a happier "bidness" owner.




http://outright.com/


http://trace.wisc.edu/resources/

http://www2.ed.gov/about/offices/list/osers/nidrr/index.html






.

[KittyWampus]

7. I just started working, opened a bank account and filed paperwork with county.

[Sheepshank]

8. Do NOT use CPA or Attorney

to set up your LLC...if you decide to go that direction. General boiler plate articles are available at you Department of Corporations (even on line) and you can set up a sole member LLC in most states (you don't even need to apply for a Fed Tax number with a sole member llc. Your taxes are done the same way as for a sole proprietor. Some states you can even do this on line.

Contrary to others on this thread, I may suggest an LLC for some liability protection. You are going to be on the road a lot and the probability of driving accidents may increase. In this litigious society, they can only sue against the assets of the LLC and not you personally.

[MercutioATC]

9. In Ohio, it's a 4-page form and a $125 check.

...and you only need to fill out about 2 lines per page (the rest is optional).

[justanaverageguy]

10. +++++1

Absolutely agree. For a small fee, usually $75 to $100 to create a LLC it protects your personal assets if your were to be in an accident of some sort while on the job.

[KittyWampus]

11. about liability- even doing something as innocuous as gardening has it's potential disasters.

Hitting a gas main while digging, for instance.

[hlthe2b]

14. That's exactly what an attorney friend told me re: LLC

:thumbsup:

[williesgirl]

12. In VA, I set up a corporation with lots of internet research and the $75 filing fee.

Their state website was great.

[TexasObserver]

13. You don't need to form an LLC just to start a business.

If you have assets you want to protect from liability, the LLC makes sense. However, for many individuals, having an LLC is just a headache. The sole proprietorship is the way many start their business. If it becomes big enough, you can form an LLC and move your related assets into it at some time in the future.

The simple truth is all you need to start your business is customers and the ability to service their needs. You can make business cards, prepare promotional materials, and run advertising. If you want to have a catchy name, invent one, and make sure it's not being used in your area already. You can always use your name, but there are some disadvantages to that.

If you will call your Secretary of State's office, or even your local county clerk, you should be able to learn how to file a "DBA" certificate. This "doing business as" certificate allows you to legally hold yourself out for business under a name you've invented, such as "Hawkeye's Computer Repair." By having a DBA certificate, you give the name some protection, and you enable yourself to take checks in that business name, and to open a checking account in that name.

Much of the time, entrepreneurs create their start up business at the proprietorship level, then convert it to a corporate entity somewhere down the road. Unless you're doing something that has a risk of injury to others - such as operating a bulldozer or making deliveries in a vehicle or climbing trees to cut out the tops - you may not need the liability umbrella offered by the LLC.

If you simply use your own name, you won't need to start a checking account anew. You can use one you already have set up. I would suggest you maintain a checking account which only has income from the business and which pays out all the expenses of the business. This helps you track your revenue against costs and helps you determine how much you're really grossing per hour of work (assuming you track your hours, which you should).

Good Luck!

[MineralMan]

15. Start as a single proprietorship and see if your business

can make a go of it. Since yours is a service business, put up a small website, Craig's List ads, and go. Don't expect miracles. Design a one page flyer and distribute it to every agency you can find that deals with the disabled community. You'll get referrals.

Operate under your own name and you won't even have to do a DBA.

If the business actually gets going, then you can take whatever steps you need to take to formalize it a little more.

All of my small businesses have begun just that way. Most never changed. I just operated them under my own name, avoided all paperwork, and just use simple Schedule C and SE tax filings. Easy peasey lemon squeezy. Seriously.

[Greyhound]

16. You can set it up in a variety of inexpensive (even free) ways, what are your goals? n/t

[Hawkeye-X]

17. Sole Proprietor/DBA

Will be just fine

[Greyhound]

19. Do you have a contract? How are they paying you? Do you have significant assets needing protection?

What, if any, overhead do you have? A sole proprietorship gives you little to no protection depending on your state. You may not need any right now.

There are too many variables for an answer. If it were me, I'd start casually and see if there is any money in it, before I started getting involved with the government and the inevitable expenses that come along with it.

[Winterblues]

18. Get yourself a card table and some chairs and have your mom make some lemonade

Sell the lemonade and get filthy rich..