I want to start my own hosting company as a reseller.

Do I need to form an LLC right away, or is it ok to get LLC after my business has been around for a few months?

Thanks.

Forming a legal entity to do business is more a way to add legitimacy, gain tax advantages and most importantly protect your personal property in the event that your Business gets sued or goes out of business. I'm not sure but I don't think reselling requires a legally formed company... you can do business in your own name.

Anyone know the total detailed costs of forming an LLC in New Jersey?

Thanks.

I love Google....

http://www.state.nj.us/treasury/revenue/dcr/geninfo/fees_pd.html#llc_file

Also, you don't have to organize in your home state.... but it all depends on your situation. Check with your CPA and/or goto nolo.com and buy their book "Form Your Own Limited Liability Company"

Also (II), if you file in your own state then you can do it yourself.

Originally posted by indyjon
I love Google....

http://www.state.nj.us/treasury/revenue/dcr/geninfo/fees_pd.html#llc_file

Also, you don't have to organize in your home state.... but it all depends on your situation. Check with your CPA and/or goto nolo.com and buy their book "Form Your Own Limited Liability Company"

Also (II), if you file in your own state then you can do it yourself.

Great, thanks.

Certificate of registration for a foreign LLC = $100.00

That would be an optional fee, correct? I don't believe that is mandatory, or is it?

Foreign means that you are organized in another state and you will be doing business in NJ. Foreign in this case means any state other than NJ.

An example: I organize a company in Nevada to take advantage of business friendly laws and courts. I will be doing biz in my home state of Indiana.... therefore I would need to get a Foreign Certification from Indiana.

I live in New Jersey, and my company will be based in New Jersey, so I don't need it.

Correct.

Also, Nolo Press has a good book about LLCs.... "Forming Your Own Limited Liability Company" See nolo.com.

Originally posted by indyjon
Also (II), if you file in your own state then you can do it yourself. Clarification: there's no reason you couldn't file yourself in any state, but you'd probably need to find and identify a local "registered agent" if you file in a state in which you don't live.

Originally posted by JayC
Clarification: there's no reason you couldn't file yourself in any state, but you'd probably need to find and identify a local "registered agent" if you file in a state in which you don't live.

True....

But personally, in the case of doing it out of state I would however find a lawyer and pay them to do the filing as well as be your registered agent.

In my case... I am my own registered agent in Indiana.

Originally posted by indyjon
But personally, in the case of doing it out of state I would however find a lawyer and pay them to do the filing as well as be your registered agent.Not to belabor this, but what I was getting at -- to approach it from the other direction -- is that the act incorporating in a state other than your own isn't any more complex than doing so in your own state. So if you can read up on the requirements of your home state and file on your own, you can certainly do the same in any other state.

Personally, I'd recommend talking to a CPA in either case, in my opinion that'd be more valuable than talking to a lawyer and paying someone to file one simple form. The act of filing for incorporation is simple; the tax situations that might result from incorporation can be complex.

If you incorporate in a state other than your own, the complexities aren't in that filing; they are in your state tax liabilities in your home state, where you'll have to register as a foreign corporation.

[Using "incorporation" here in a general sense meaning "creation of a legally-defined business entity." That is, "LLCs, too."]

Originally posted by mantra
I want to start my own hosting company as a reseller.

Do I need to form an LLC right away, or is it ok to get LLC after my business has been around for a few months?


If you are like me, you know most of the technical aspects of running a hosting company, but not the legal aspects. If this is the case, dont *assume* that an LLC is the best (or only option for you).

Do what i did, seek the advice of an attorney and/or accountant - whatever it costs you will make up for itself by getting you started off on the right path...

In my case (and each case varies), based on my long term plans/goals, it was better to form an S-Corporation instead of an LLC.

Just my .02 worth.

You are right.