The best reason to start your LLC in Virginia is that you live in Virginia. Americans don’t need to start LLC’s in LLC friendly states to get the important benefits of LLC ownership. If you do want to own in another state and you live in Virginia you still need to start an LLC in Virginia and then apply for an LLC in another state. It is a mistake to do it this way for small companies under $5,000,000 in value.
The assumption for this LLC is that you have wages and a potential external source of income for the LLC
Piercing the corporate veil – money
- Failing to maintain the formal separation of your business and personal assets may lead to a suit against your business. When you establish your business, you must operate that business under the regulations that are locally, state, or federally enforced. Keeping business and personal finances entirely separate is one of the best methods of safeguarding against a personal lawsuit.
- Practicing business in a fraudulent manner is another way to land yourself with a lawsuit. Financial irresponsibility, accruing unreasonable debt, or conducting dishonest business are examples of fraudulent behavior. If you are found suspect of committing financial fraud, your limited liability may not protect you from personal liability.
- Contracting another business in order to have a service performed for your business is a business debt. However, failing to pay that debt upon invoice or court order leaves you vulnerable to the court’s decision to pierce the corporate veil. The court will seek to settle the debt against your business in a fair manner, and if your business assets are not suitable, your personal assets may be assessed.
- Misuse of multiple LLC’s (Assets separate from debts)
- Misrepresentation of ownership of the LLC
Articles Of Organization
Act in You Capacity
Protect Your Company From Your personal Debts
Corporate Paperwork including Meeting Minutes
Travel for Business
Software and Apps
Research and Development
Cell Phone and Service for all family members (50%)
Meals and Per Diem (50%)
20% of all profit as single member LLC
Mileage, Parking and Tolls (Tracking Tool!!)
Health Savings Account – No income cap
S Corp Election (15% vs 3% payroll taxes)