I work 9-5 in logistics and want to start an LLC for a small consulting side gig. I don't plan to quit my job. What are the main things I need to consider? I'm in Ohio if that matters.
Business Formation
I have a full-time job and want to start an LLC on the side
Make sure your employment contract doesn't have a non-compete or moonlighting clause. That's the first thing that can sink you.
Ohio LLC filing is straightforward. But don't forget the annual report and franchise tax. Also, if you're consulting, chekc if you need a local business license in your city.
How much revenue are you expecting? Sometimes an LLC isn't necessary if you're just testing the waters. Sole prop might be simpler for a side gig.
I expect maybe $10-15k the first year. I want the liability protection and separate business banking. I've read that commingling funds is a big no-no.
Yes, commingling is a big no-no for liability protection. Get a separate business checking account and run all business expenses through it.
also consider an EIN. You'll need it for the bank account and for tax purposes. It's free from the IRS.
If you're the only member, an LLC is taxed as a sole prop by default. You can elect S-corp later if you make enough to justify the extra paperwork. Not worth it at 15k
Thanks. I'll check my contract and file the articles. Appreciate the help.