Help with forming a business?

zaqwsx · 05-03-2011, 01:58 PM

Hey guys so I had a few question about forming a business. Its going to be an LLC their are 2 partners Me and another guy.

My question is when we apply for an EIN number do I have to be the majority share holder?

JC316 · 05-03-2011, 06:53 PM

First, you have to go to the city that you will be doing business in and file a Doing Business As, also known as a DBA. In Texas, you have to file the .LLC with the secretary of state, file with the comptroller to get the tax ID/EIN, but every state is different.

When we filled out the .llc for our business, it was even, but I think you can put down the majority to whoever. Also, for the love of God get an operating agreement in place, be sure to get an exit strategy for the members to be able to leave the company.

erocker · 05-03-2011, 08:37 PM

Hire a CPA. Seriously.

pepsi71ocean · 05-03-2011, 08:49 PM

yea i second, must find a good tax accountant, or else you will be screwed.

JC316 · 05-03-2011, 09:42 PM

Quote:

Originally Posted by erocker

Hire a CPA. Seriously.

I concur. It was a raging pain the ass to get off from the damned thing for me because we didn't know what we were doing when we set it up. Fortunately my dad's business partner is a lawyer and he helped me out.

erocker · 05-03-2011, 09:43 PM

It is a must.

zaqwsx · 05-04-2011, 04:05 AM

OK let me clear up some stuff for you guys. I am currently in a business with a friend. He has %80 share, I have %20. So whats happening know is we are opening a new business with a new name and getting rid of the old business to lower costs.

The old business is an LLC and Articles of organization and Operating agreement were done with a lawyer but we got ripped off.

Also we haven't been making any money and we both have been working for 2 years with basically no pay. Also the other guy still owes the old owner of the old business and has been paying him from business so basically I put money down got %20 of a business I thought he owned only to realize this later and am now paying for a business that's not fully his.

So now with the new business it is going to be 50/50 problem is one person has to be 49 and one 51 or you have to have another person to vote in case of a disagreement.

He wants the 51 because he says he is their more and that's true because I go to college full time.

Anyway I don't care the problem is I filed the Articles of Organization and my name is on it. And my name will basically be on the ein and everything else.

So with all that my question is that should it mater is he has the 51 and my name is on everything or should I have the 51.

Edit: I also know all the steps for filing an llc. Basically its Files the Articles of Organization wait for approval, Post 2 ads in separate newspapers each week for 6 weeks and then fill out the certificate of publication form, get that back then get an Operation agreement (which I have from the old store), then files an EIN if you have an employee which i do and your basically done.

05-03-2011, 01:58 PM	#1
zaqwsx Senior Member Join Date: Jun 2009 Posts: 112 Thanks: 12 Thanked 10 Times in 9 Posts Dislikes: 0 Disliked 1 Time in 1 Post	Help with forming a business? Hey guys so I had a few question about forming a business. Its going to be an LLC their are 2 partners Me and another guy. My question is when we apply for an EIN number do I have to be the majority share holder?

05-03-2011, 08:49 PM	#4
pepsi71ocean Senior Member Join Date: May 2009 Posts: 745 Thanks: 86 Thanked 145 Times in 105 Posts Dislikes: 2 Disliked 1 Time in 1 Post	yea i second, must find a good tax accountant, or else you will be screwed. __________________ "A Free man is an armed man, a man who is unarmed is no better then the Government that control him." unknown The Family 1950 Lee Enfield, 1944 BCD Mauser, 1942 BYF Mauser, M-48 Mauser, M1891/30 Moslin Nagant, HRA M1 Garand, SA M1 Garand, and a SAI M-1A, Yugo SKS M59 99 3500 Built DTT Auto, 3.55's, 4x4, BHAF, 6" lift, Danin Optix, Gauges, DAP 60hp sticks, FASS 95, 2LO kit, HIGH Idle BOMB, Silencer ring delete, 4" exhaust, SMARTY, Boost Elbow,100Gal Aux Tank.

05-04-2011, 04:05 AM	#7
zaqwsx Senior Member Join Date: Jun 2009 Posts: 112 Thanks: 12 Thanked 10 Times in 9 Posts Dislikes: 0 Disliked 1 Time in 1 Post	OK let me clear up some stuff for you guys. I am currently in a business with a friend. He has %80 share, I have %20. So whats happening know is we are opening a new business with a new name and getting rid of the old business to lower costs. The old business is an LLC and Articles of organization and Operating agreement were done with a lawyer but we got ripped off. Also we haven't been making any money and we both have been working for 2 years with basically no pay. Also the other guy still owes the old owner of the old business and has been paying him from business so basically I put money down got %20 of a business I thought he owned only to realize this later and am now paying for a business that's not fully his. So now with the new business it is going to be 50/50 problem is one person has to be 49 and one 51 or you have to have another person to vote in case of a disagreement. He wants the 51 because he says he is their more and that's true because I go to college full time. Anyway I don't care the problem is I filed the Articles of Organization and my name is on it. And my name will basically be on the ein and everything else. So with all that my question is that should it mater is he has the 51 and my name is on everything or should I have the 51. Edit: I also know all the steps for filing an llc. Basically its Files the Articles of Organization wait for approval, Post 2 ads in separate newspapers each week for 6 weeks and then fill out the certificate of publication form, get that back then get an Operation agreement (which I have from the old store), then files an EIN if you have an employee which i do and your basically done. Last edited by zaqwsx; 05-04-2011 at 04:20 AM.

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05-03-2011, 06:53 PM	#2
JC316 Senior Member Join Date: Apr 2009 Location: DFW, TX Posts: 5,614 Thanks: 871 Thanked 3,478 Times in 1,783 Posts Dislikes: 9 Disliked 15 Times in 14 Posts	First, you have to go to the city that you will be doing business in and file a Doing Business As, also known as a DBA. In Texas, you have to file the .LLC with the secretary of state, file with the comptroller to get the tax ID/EIN, but every state is different. When we filled out the .llc for our business, it was even, but I think you can put down the majority to whoever. Also, for the love of God get an operating agreement in place, be sure to get an exit strategy for the members to be able to leave the company.

05-03-2011, 08:37 PM	#3
erocker Super Moderator Join Date: Apr 2009 Posts: 4,765 Thanks: 1,016 Thanked 4,211 Times in 1,994 Posts Dislikes: 94 Disliked 46 Times in 40 Posts	Hire a CPA. Seriously.

05-03-2011, 09:43 PM	#6
erocker Super Moderator Join Date: Apr 2009 Posts: 4,765 Thanks: 1,016 Thanked 4,211 Times in 1,994 Posts Dislikes: 94 Disliked 46 Times in 40 Posts	It is a must.

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