Comments on: Ask me anything – 5th edition

By: Tight Fisted Miser

Tight Fisted Miser — Sat, 06 Dec 2008 16:18:21 +0000

I’m a little late to this discussion as David has pretty much echoed my thoughts on reading this. I don’t see much benefit from setting up an LLC. I also haven’t bothered to open a business checking account. It is pretty simple to keep track of all my business expenses and income at this point without having a separate account. If I were in a business where I had lots of different income and expenses I would open a business checking account but for now I don’t see any need.

By: Roth IRA FAQ, Income Streams and Financial Q & A

Roth IRA FAQ, Income Streams and Financial Q & A — Wed, 03 Dec 2008 22:11:59 +0000

[...] Gather Little By Little: Ask him anything! Nice financial Q & A by Glblguy. [...]

By: David

David — Wed, 03 Dec 2008 15:05:32 +0000

LLC’s are not foolproof by any means at all, and if you are a sole proprietor you have no need for one. In fact, you can end up paying more in taxes if you are not careful. You also don’t even need separate checking – I have never written a business checks in over 2 years of doing this – all expenses go on my Amex card. When you are a sole proprietor, all your money is yours – it doesn’t matter what you do with it. Keep good records and pay your estimated quarterlies and chances are you will be fine without forming an LLC. So before you set one up, be sure to talk to a lawyer and a tax person as well. Also, read the book “Self-employed Tax Solutions” – it’s fantastic.

By: MyJourney

MyJourney — Wed, 03 Dec 2008 14:43:16 +0000

@Steve,

You are 39 and plan on retiring in 15 years (i.e. 54) and you are discussing the state of your 401(k) accounts…well as I am sure you are already aware, you can’t start invading those accounts until 59 and a half. This is not a hard and fast rule…there are distribution options known as hardship distribution and 72t equal payment distributions.
Just something to think about!

@Dave,
I have an affiliate link on my site (I am pretty sure GLBL may have it here somewhere too) where MyCorporation is doing the filing work for FREE until 12/5….doesn’t give you much time to think but it may be worth just signing up.

@GBLB,
Shame on you! No business checking and savings? The main advantage of having an LLC is the limited liability (i.e. LIMITED LIABILITY COMPANY!) however this limited liability can be pierced if you act one in the same as the company.

GO SET UP A FREE BUSINESS CHECKING SOMEWHERE!

By: Patrick

Patrick — Wed, 03 Dec 2008 12:43:17 +0000

Great tips, Gibble. I;m doing the same thing with my 401(k) plan – still contributing. I haven’t changed my allocation. At this point I’m just hoping to buy more shares at lower prices. I have 30 years to go, so I’m hoping I am able to grow my income by the time I need to withdraw the funds.

As for the LLC, I set one up as well. I separated my business income with a business checking and business savings account. I also have business credit cards for my business expenses. I just find it all easier to manage that way.