Isn't Chrysler an LLC?
On 2016-12-08 11:29, James Dugger wrote:
It is understandable that hiring a contract employee's LLC is risky,
the answer is in the name - Limited "Liability" Company. LLC's were
designed to make it easy to get the advantages of incorporation
without its full formal rigid tax and accounting structural
requirements. The biggest advantage is as a liability shelter. The
Real Estate Development Industry literally runs on them.
They are intentionally setup to make it legally difficult for another
entity to "pierce the financial veil of the corporation". The biggest
advantage of an LLC is not the one your contracted with. It's the
second or third that you don't have access to.
What I mean by this is that if you are an entrepreneur and you own say
5 different businesses all LLC's and one client contracted through one
of your LLC's successfully sues you, Assuming your other LLC's are not
contracted with the client (under the same contract) They legally
cannot pierce your other LLC's to go after additional assets. This is
by design.
I have several LLC's and have used them to shelter activities between
contracts for years, for this reason. Granted I am not contracting as
a "contract employee" in these instances clients are hiring my
company. As is how it should be.
So it is understandable that large corps would not want to hire LLC's
because they are taking the risk.
On Thu, Dec 8, 2016 at 10:26 AM, Rusty Ramser
<[email protected]> wrote:
"Forming an LLC in AZ is simple ... and takes 3 or 4 hours (for a
beginner) over about 6 weeks."
It's even easier than you realise. It should take about 1 hour (2
at the absolute most) over the course of a single Saturday
afternoon. If you want to hand-carry your forms into the government
office in downtown Phoenix that processes them, that will add a few
hours during the work week. But barring that, it's absurdly easy to
set up an LLC. There are plenty of lawyers, CPAs, etc. that are
happy to charge you a hefty fee to handle the paperwork of
establishing an LLC -- don't fall for that rubbish.
Cheers.
-----Original Message-----
From: PLUG-discuss [mailto:[email protected]]
On Behalf Of Keith Smith
Sent: Friday, 9 December 2016 04:01
To: Main PLUG discussion list
Subject: Sec. 1706 of the Tax Code
David, you have brought up Sec. 1706 of the Tax Code several times
over the years. I am not familiar, however from what you describe
it sounds like it prohibits a programmer from becoming a sole
proprietor, however it sounds like it does not stop agencies from
doing contract work.
What is an agency?
I'll read Sec. 1706 of the Tax Code when I get done with my current
project and have more time.
Sounds like the solution is to form an Limited Liability Company
(LLC).
My accountant says it is legitimate to form an LLC and be a one man
band and to have only one client. He say that is a legit business.
Forming an LLC in AZ is simple. Fill out the forms the state
provides pay your fee with the filing and publish. I think it costs
about $85 and takes 3 or 4 hours (for a beginner) over about 6
weeks.
Anyone have any thoughts?
--
Keith Smith
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