Legal Question in Business Law in Arizona

I'm thinking of starting up my own computer repair business and wanted to know what legal steps I must in order to make my business legitimate. One thing that interested me most, is that members of the company are subject to ordinary income tax but not to self-employment tax. How much will this effect the person filing taxes and what exactly is the difference? I would also appreciate any other advice and input you have on regulations and formalities of starting an LLC.


Asked on 1/12/10, 8:24 pm

1 Answer from Attorneys
Donald W. Hudspeth The Law Offices of Donald W. Hudspeth, P.C.

Forming an LLC is a good start, as it is the most inexpensive form of liability insurance you can get for yourself. LLCs have "flow-through" taxation, meaning the profits are taxed once on their way to you. If you form your LLC with us, it will cost $750.00 total for the preparation of the Limited Liability Company, Consultation, Articles of Organization, Operating Agreement, LLC Resolution, Waiver of Notice and Minutes of Organizational Meeting OR Unanimous Written Consent of the Sole Member in Lieu of Organizational Meeting OR Unanimous Written Consent of the Members; includes EIN, expedited filing fee, 3-publishings and courier fee; also includes Statutory Agent service free the 1st year thereafter, $95 per year. You would also need to apply for the appropriate city and state licenses, depending on where you are operating and what exactly you do and sell.

Read more
Answered on 1/20/10, 11:37 am


Related Questions & Answers

More Business Law questions and answers in Arizona