r/llc_life

A friend and I are discussing a potential business partnership, but we're trying to figure out the fairest way to structure the LLC before we file anything.

One person would be putting up all of the startup capital and taking on most of the financial risk, while the other person would mainly be contributing industry experience and helping grow the business over time. Because of that, we're wondering if ownership and profit sharing always have to match.

Ideally, we'd like one member to retain full equity ownership while giving the other member a smaller share of the profits as an incentive. Before we get too far into planning, we're trying to understand whether that's something an LLC can actually be structured to do or if ownership percentages and profit allocations generally have to go hand in hand.

Have you seen arrangements like this, and is it something that's typically handled through the operating agreement?

About a year ago, I started an LLC with one business partner. At the time, everything was pretty informal, and we never created an operating agreement. We agreed on our ownership percentages, but nothing was ever put in writing beyond the original LLC filing.

Since then, we've realized we have different goals, and I've decided it's best for me to leave the business. The LLC is still active, and it has a business bank account, a few ongoing contracts, some equipment, and a small business loan that we're both responsible for.

I'm trying to figure out what steps I need to take to remove myself from the LLC properly. Do we need to sign an agreement between ourselves, update the state records, or both?

I’ve been looking into forming an LLC in Wyoming and comparing the real costs. At this point, I’ve spent enough time researching that almost any option would probably save me money just by ending the overthinking.

So here’s a simple breakdown that might save someone else a few hours.

Self-filing is the cheapest direct option. Wyoming’s state filing fee is $100, with a small extra fee if you file online. The annual report minimum is $60, and it’s due each year in the anniversary month of formation.

The catch is time. You have to file everything yourself, keep track of deadlines, and make sure your registered agent setup is correct.

If you self-file and just hire a Wyoming registered agent, you’ll usually add around $50 to $150 per year depending on the company.

The big difference compared to New York is that Wyoming does not have the expensive publication requirement. That makes the total setup much simpler.

From what I’ve seen, services like Northwest and Bizee are pretty close once you compare the basics. Bizee can look cheaper upfront because of the free first-year registered agent offer, but the renewal cost matters. Northwest usually costs more upfront but includes privacy-focused address use and registered agent service in a cleaner package.

Roughly speaking, compared to pure self-filing, the extra cost looks something like this:

Local Wyoming registered agent only: about +$50 to +$150 per year

Bizee: low upfront cost, then around +$149 per year after the first year

Northwest Registered Agent: around +$125 per year for registered agent service, with more privacy features included

For me, the main decision is whether I want to save the most money or save the most time. Wyoming already keeps the state side fairly simple, so paying extra only makes sense if the service saves you admin work or keeps your personal address off public filings.

Curious how others handled this. Did you self-file your Wyoming LLC, use a registered agent service, or pay someone to handle the whole thing?

Hi everyone,

I’m interested in setting up an LLC in New Mexico but I’m not sure how to start or what steps are involved. I’d really appreciate any advice, resources, or tips from people who have gone through the process.

Thanks in advance!

I recently hired a small home repair company for a project. I paid a deposit, but the work was never finished, and now they're no longer responding to my calls or messages.

While trying to find more information, I looked up the business and saw that their LLC has been listed as inactive for several months.

Does an inactive LLC still have the legal right to take on new customers and collect payments? If not, what are my options for trying to get my $1,350 back?

Should I start an LLC?

My Situation:

I do e-commerce, and I'm selling supplements (will launch soon)
I'm a NOT US resident

I thought a little bit about it, but I wanted to ask you guys.
(Please answer only if you have an LLC and maybe also run supplements)

thanks

I'm learning about nonprofits and I’ve seen the term "501(c)(3) alot," but I'm not exactly sure what it means.

I'd appreciate your simple explanation.

Hi. Can I form an LLC and conduct two types of business activities—for example, selling products online and providing video and photography services—or do I need to create a separate LLC for each? Thanks.

I'm trying to come up with a name for my LLC, and I'm thinking about using my last name as part of the business name.

Some people say it's completely fine, and I've seen a few others talk about avoiding it.

What would you suggest?

Hello

I formed an LLC as a foreigner with Northwest Registered Agent and they sent the Form SS-4 around 9 weeks ago to get me my EIN so I can open accounts. I was told that 4-8 weeks is normal so I´m a bit scared that something went wrong and in the end I have to wait event longer.

Is 9 weeks normal right now and does someone have experience with that too?

Hello,

I looked a lot through this forum or to the ones specific related to Fintechs such as the subreddit for Wise, Mercury, Revolut etc.

I know that these are not banks and you kind of get what you pay for with them...
But Fintechs right now are my only option to receive money from customers

I now read a TON of reviews that these accounts got freezed immediatly after receiveing the first payment. Does anyone here have similar experiences or have an idea what I can do to safely receive my first payment?

I´m a German citizen with a residency in Paraguay and started my LLC 2 months ago
The first customers will be from Germany

I'm starting a small LLC with a family member to run an online business. Instead of taking all the profits out each year, we plan to leave some of the money in the business to help it grow.

While reading about LLC taxes, I came across information saying that retained earnings above $300,000 may be subject to an additional tax.

What I'm confused about is the amount below that threshold. If an LLC keeps, say, $80,000 or $150,000 in the business, how is that taxed? Is there a different tax rate, or does that rule only apply once you go over the limit?

I'm still learning how all of this works, so I'd appreciate any clarification.

I'm a little confused about how LLCs work.

I've seen people online say you should start an LLC once you're making more than $75,000 a year. Is that true?

Can you create an LLC even if you don't have a business yet? Or do you need to already be selling something or offering a service?

If you do need a business, what are some simple small business ideas that people commonly use to get started?

I'm getting ready to open my first business checking account, and Chase is one of the banks I'm considering.

I've compared a few different banks, but I like the idea of having physical branches in case I ever need help in person. I've also looked at online banks, but I'd rather stick with a traditional bank for now.

One thing I've noticed is that a lot of people on Reddit say to avoid Chase, but they rarely explain why.

Most comments just say it's a bad experience without giving any details.

I'm getting ready to form an LLC, and LegalZoom is one of the first names that comes up no matter where I look. It also seems to be one of the more expensive options, which has me wondering if there's something I'm missing. I've seen load of formation services online that basically do the same job but charge less, but I am kind of afraid of scams. What is a normal price for this kind of service?

In their case, is the extra cost mostly for the brand name, or do they actually offer better support, fewer headaches, or something else that makes it worthwhile? I don't mind paying more if it genuinely saves time or helps avoid mistakes, especially since this is my first LLC. At the same time, I don't want to spend extra just because a company has better marketing. Is someone here that actually used their services and can give some advice, or maybe someone switched to/ from them? Thanks

Hola, ya tengo mi proyecto desarrollado, pero ahora estoy con las dudas en la constitución de la empresa, si será una LLC o C-Corp.
¿Además en caso sea en Delaware, como gestionan los temas legales?
Ya que en mi país he visto que constituir una empresa tarda un par de semanas y cuesta menos de 100 dólares, pero en caso quiera cerrarlo puede llegar a costar 2000 dólares y tardar meses.

I recently started an LLC and I'm trying to figure out how health insurance works.

Can I get health insurance through my LLC, or do I need to buy a regular individual plan first?

If you've gone through this, how did you set it up? Is there anything I should know before getting started?

I'm getting ready to launch a business that will probably operate at a loss for the first year or two while I build it up. Since there won't be much revenue early on, I'll be covering most of the startup costs with my own savings.

One thing I'm trying to understand is how that money should actually be put into the business. I know I can transfer funds into the LLC's bank account, but I'm not sure whether it should simply be treated as an owner contribution or if I should formally document it as a loan to the business in case I want to repay myself later.

My goal is to keep everything clean from an accounting and tax standpoint so I don't create problems for myself down the road when the business eventually becomes profitable.

Is there anything you wish you'd documented differently from the beginning?

No, not the paperwork, it’s all about the practical experience.

Perhaps it’s trying to keep your business and personal finance completely separate.

Maybe it’s the tax issue.

Maybe it’s trying to find that first customer.

Maybe it’s the realization of the amount of time spent on activities not related to the core business at all.

What is one unexpected aspect of operating an LLC?

I'm opening a PayPal Business account for my single-member LLC, and I'm confused by one of the questions.

PayPal asks me to choose a business type, but the only options are Sole Proprietorship, Partnership, or Corporation. There isn't an option for a single-member LLC.

If I choose Sole Proprietorship, PayPal asks for my SSN instead of my EIN, even though my LLC has its own EIN.

Any experience from anyone?