Forming an LLC - attorney advisable?

Yes to the attorney.

Yes to the accountant.

And, see both before filling out the forms.

The purpose is to do it right the first time and to make sure that your friend has considered everything he should on a legal and financial basis during set up. If it's simple then it will be correspondingly priced for the appropriate professionals services, which are . . . priceless in retrospect when dealing with problems resulting from faulty, inappropriate or defective formation of an entity

Yes. What Theresa said. And you can run a search on Biztalk for "LLC" and several previous interesting conversations about this will come up.

And, um. You've invited your friend to become a full-fledged Biznik member, right ;-)

Heather, I ditto Theresa's advice - he should consult both a lawyer AND a tax professional BEFORE submitting the forms. It's a lot harder (and usually more expensive) to undo mistakes than it is to pay to have things done properly the first time around!

Best wishes,

Valerie Farris

Heather, it's a little secret, but you don't Have To be in business to be a Biznik ... there's lots of great pre-business owner events and opportunities!

Heather, there are significant differences in the total tax you pay depending on the type of entity you choose. Your friend may want to look at my article "Entity Choice (Saving Tax with S Corporations)". Just click my site below and select tax accountant/cpa libary to review the article. He can choose to be an LLC but elect to be taxed as an S Corporation.

Every business owner should consider the tax differences between entities. With an S Corp, or an LLC taxed as an S Corp, there is great potential to reduce the self employment tax you pay. You can see this from the example included in the article.