06 September 2007

First Day of Being an Indi

Yesterday was my first day of being an "Indi", as in an independent contractor/web worker/having my own company, etc.  I'm working on some contracts, started the process on forming an LLC, etc.  I decided to use MyCorporation.com for the LLC formation, to lessen the amount I need to do.  They called me this morning to say everything was in order, and they're submitting my forms, etc.  I also bought the .com and .net domain names for the new company (name forthcoming, once I ensure the LLC goes through).  


I now need to get the logo worked on, bank account, and AMEX card, finish evaluating hosting providers and so on.  I plan to be building a few web apps of my own, with hopes that I can grow that into what makes my living, but will also be working part time for a company to start off (and have a guaranteed source of income).  I'm loving this already...

4 comments:

Trent said...

Dude, that's too cool. Makes me wanna get me a company, too. I'd have to give up the day job to get any real work done, of course. (That's the hard part, right?)

Roughly how much did it cost you to form the LLC?

Chris said...

The costs depend a bunch on what state you are registering it in. Also, there are a slew of options, and also rush service (which is expensive, but which I did, as I needed it quick). Mine was about $700, but the rush service was $200, and I also got the reports, and a few other options. The actual pure LLC part is a couple hundred as I recall. If you go to MyCorporation.com and pick your state, they'll show you the cost breakdown.

Jason said...

What's the bebfit of doing an LLC? I have been a sole proprietor for a few years.

Chris said...

Jason, the benefit of an LLC is further protection - liability is limited to the assets of your company. Also it allows you to do Corp to Corp contracts, and various other things. The tax work is the same as you'd do for a sole proprietorship. Every business book I've read on this stuff has suggested at least an LLC. You can also get into things like an S-Corp or C-Corp, but these get a fair bit more involved, and my take is that they are only needed if you plan to issue stock and have multiple people. The only disadvantage of an LLC over sole proprietorship is the cost, as the business license costs more. But, the limited liability, etc. seem to well make up for that IMHO.