A few days later… 3

As I mention previously, I decided to get some legal assistance for the start-up process. It’s complex enough that I do not want to risk screwing something up before I even get started.

I talked with that lawyer today, and decided to utilize his services to start up. His charge to me is a flat fee of $1000 in labor plus the cost of all filings to the state and federal government. From the looks of it he will set everything up LLC wise and do the s-corporation election, tax ids, and unemployement id(s).

He also mentioned a few things that I didn’t notice yet in my research.
1. There is a tax id you need to get for the state, this is different then the federal one. It is logical, but for some reason I didn’t notice that.

2. There are two other unemployment tax ids that I need (federal, state).

I will have to pay federal and state unemployment tax even though I could never actually file for unemployment. (edit: This is false, I was able to file for unemployment later in the book).

He also mentioned that once incorporated, make sure that everything personal and related business is completely separated. That means that when doing things like signing a business check, sign it like “John Doe, Sole Manager” … so that if caught in a legal situation, the chances of breaking the corporate barrier is lessened.

So now I have to figure out insurance issues as well as taxation…

References:
http://www.irs.gov/businesses/small/international/article/0,,id=104985,00.html
http://www.irs.gov/publications/p926/index.html
http://www.irs.gov/publications/p926/ar03.html#d0e1749
http://www.nvbdi.org/howto/taxes.php

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