Getting a new legal business name. Need advise:(

[DannyK]

hi there, as my computer business grew quite big. I have to get a legal business name to accept credit card orders. I am building and selling pc parts in US. however i need a good legal name which protect me fromg getting sue and will not let others grab my personal assets.

I am thinking of getting a Private Limited : Pte Ltd or
Pty Ltd (not sure whats it but i seen it somewhere on the internet)

Can someone tell me what these 2 are about ? Do i need a lawyer to do those paperwork ?

Regards,
DannyK

[Stephen]

deciding what to do about registering your business can be a complicated affair, especially if you decide to establish yourself as anything but a proprietorship (i.e. sole owner).

your best bet is to hit the "starting a small business" aisle of your nearest bookstore. however, if i remember right, unless you have employees working for you you'll be stuck with the proprietorship option only. the pluses in this case are that it's VERY easy to get up and running as a proprietor--basically all you need is a local business license, a seller's permit, and a registered fictitious business name (which you're usually required to advertise once a week for a month in the back pages of a local newspaper).

When you start thinking about limited-liabilty companies and the like, then you need to consider looking into the services of a lawyer and accountant... :)

[elite]

It sounds like you wish to seek the benefit from a corporation. With a corporation you are legally seperate from a buisness. That is the differnce between sole proprieterships (err spelling)

Anyhow keep in mind it does cost money for legal fees to become a corporation, and you also have to pay more taxes.

Again as suggested head to the bookstore. There are hundreds of books just on this :)
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[Tatu]

Hmmm, I am not sure we can really help you that much unless one of us lives in your state/country. ;)

I have had similiar troubles: I wanted to switch my sole proprietorship (just forget the spelling...) from San Tatu De Leon (it is a long story that started from when I was in 4th grade, I mixed my first name with several "New World" Explorers heheh) to something that sounded much less Spanish (not that sounding Spanish is bad, but I'm European and I don't need a false image/label.). PLUS the initials of the business are STDL! I know I wouldn't want to put that on my license plate, chicks would practically run away from me. I just don't want to have to pay all of my state and county licenses all over again for the new name (unless I don't have to?). Anybody living in Florida know this junkamobunk? :)

-Tatu

[Rich]

You can also find a lot of excellent info on starting a business, incorporating, etc. at:
http://www.quicken.com/small_business/

Rich

[Shalazar]

There is an intermediary between a full corporation and a sole proprietorship which affords the advantages of both and costs significantly less than full incorporation.

Check out how to become a Limited Liability Company (LLC), and I think you'll find it an attractive option.

You get the immunity of a corporate body, but the tax advantages of claiming profit and loss in a sole proprietorship basis.

It can be set up by even the least competent attorney for a modest fee, or you can do it yourself with any number of the EZ-Legal forms for about $99.00.

As always, check in detail with your accountant, as LLC rules must be followed to the letter, and differ from state to state.

[DannyK]

THanks guys,

looks like i am going to get a Limited Liability Company (LLC)for my business name as i have 5 staff in my offic.

Could someone tell me if it is compulsory to have a lawyer and accountant and do i have to pay them full time or i am able to pay them per services for doing accounting for me.
Hiring these 2 cost a bomb in my pocket and i might go broke anytime IF i hired them full time :)

Last but not least can someone tell me more about the benefits of LLC? How much taxes am i suppose to pay and how much am i suppose to pay for a full LLC setup?

[Shalazar]

Danny -

Like I said, situations are going to vary state to state, and case by case.

Since a LLC is very similar to a corporation, you are going to have to name an attorney as the legal representative of your business.[nbsp][nbsp]But unless legal needs arise, it's just a name on a paper and you shouldn't have to pay anything unless services are rendered.[nbsp][nbsp]For example, my father's business LLC'ed, and his lawyer prepared the paperwork and reserved his name as the legal attorney.[nbsp][nbsp]We haven't paid him a dime since, except for the filing of the paperwork.

Secondly, as for an accountant, you may or may not pay for one's services.[nbsp][nbsp]The LLC affords tax protection of a corporation, while still allowing you to file as a sole proprietor or partnership, claiming profits and losses on your personal statements.[nbsp][nbsp]Therefore, if you choose to do your taxes on your own, there is no need to pay anyone.[nbsp][nbsp]If you use your accountant for your one time yearly tax filing, you will have to pay them accordingly.[nbsp][nbsp]Otherwise, if you have a full-time staff accountant, that's different altogether.

Again, the specifics of an LLC will vary based on your state, so it is to you advantage to seek the advice of an attorney and an accountant to make sure your comfortable with the guidelines your state has set forth regarding becoming an LLC.

I've provided a list of hotlinks to give you a start on your search for info, and best of luck to you!

http://www.isquare.com/llc.htm
http://www.nolo.com/encyclopedia/sb_ency.html
http://moneycentral.msn.com/articles/tax/basics/1400.asp
http://www.henderco.com/798.html