I have a small personal training business that I run on the side of my regular gig (I run a large Aquatic and Fitness Center for a municipality).

I net about $1,300 per month and have zero overhead.  

Currently I get a check from my facility for all the training I do and they take their cut out before hand.  So as of now the client pays the facility and then the facility pays me.  At the end of the year I get a 1099 and my taxes are super easy.  

Beginning in May my clients will begin paying me directly and I will have to pay the facility my rental after the fact.  So I'm going from getting a 1099 at the end of the year to having to figure this thing out on my own.  Also, my gross will increase to about $2,000 per month but I'll then owe the facility $700 for my rental fee bringing my net back to $1,300.

I want to create an LLC to limit my risk exposure and also set up a business checking account to deposit all revenues into so I can keep track of my income for tax purposes.  Is there anything else I"m missing that I should be doing?  Already have liability insurance and a business license.  Will those need to be changed when I create my LLC?

ALSO, how in the hell do I go about creating an LLC?  I have a general idea of what I want/need to do but just don't know where to start.

EDIT: Any advice on limiting my tax liability would also be greatly appreciated.

Thank you for any help.

File a business registration/articles of incorporation with your state business agency/secretary of state. It costs usually $100-$200 and will have to be paid initially, as well as yearly to maintain the business as an entity with the state.

I assume you have a DBA right now, so when you obtain the LLC you will need to switch liability insurance over since you are now covering the entity instead of you personally as the proprietor.

Not sure what a business license is. But you most likely need to switch it over since it is an LLC now.

#1 rule keep it blatantly obvious the llc and you are totally different/separate.

Edit: Maybe register here, or it should be pretty close to where you need to go.

http://www.scsos.com/onlineforms/Name

First off thanks for reading and posting a reply. I went to that link, been there before and just don't know what/where to go or what to do. Trying to do it in a phone isn't helping.

I am not sure if you reduce exposure by creating  a LLC for a single person, you might want to check into that before spending money on creating a LLC versus sole proprietor. Between the filing fees and hiring an attorney, you are looking at $2000. You might be better off creating a sole proprietor business and buying decent liability insurance.

As far as limiting tax liability, a LLC is a pass through entity, all profits go  to the members. You will be able to write off everything you can document, so keep receipts. Your taxes get more complicated, you need to file a form 1065, and give yourself form K-1's instead of getting a 1099. You still have to pay the self-employment tax as well.

In my state you can form the LLC on the state website for about $100. Make sure to get a separate bank account for the business. From what I read you don't want to mix money. When I need money from the business I write a check from that account and deposit it into my personal checking account as a draw. Using the LLC bank account for personal expenses can be a problem if you are ever sued.

I have an LLC and have never done K1s or any other extra tax forms other than paying quarterly estimates. You can form an LLC as a sole proprietor. LLC only matters at the state level.  





 

I have rental properties that I put in an LLC.  My real estate attorney set it up for me.  Perhaps that could be done for you as well.

As mentioned above, make sure that your finances and your LLC finances are kept totally separate.  If they intermingle, it can be used to spill over into your personal finances when they can't get what they want out of the LLC.

Do I really need to hire an attorney?

I didn't but your state may be different. For me it took about 30 minutes on the state business website. It's actually a Limited Liability Company not Corporation. The company can be a sole proprietor, corporation, partnership, or whatever for federal purposes. I did mine as a sole proprietor and just used my name as the business  since customers often wrote the checks in my name anyway. The hardest part was the business bank account since the bank requires documentation proving you have a business. They gave me more trouble than if I was borrowing money.





 

You want a SMLLC.

The link Chrome posted is where you want to start. Step one is figuring out your LLC name.  On the SOS website, there is a name search.  There are quite a few rules on the name regarding how close it can be to another LLC name already registered.

As posted, it will probably be a couple hundred bucks to do it yourself.  If you can't or don't want to navigate the site, then you have the option of using an online service such as Legal Zoom.  This will increase the cost but they walk your though the entire process including your Federal Tax ID.  You can even have them setup your vendor's license/seller's permit if you are required to collect and remit sales tax.  They'll even act as your registering agent.   Your third option is to have a local atty set it up and it will cost probably 1500ish.

Obviously, you can save a lot of money if you can navigate the SC SOS's website yourself (and irs website for your federal tax ID---do NOT use your SSN as your EIN for your LLC as you will defeat the entire purpose of separating yourself from the LLC.)

As for taxes, it will be just like a Sole Proprietor.  Just don't forget about self employment tax.  You'll grow to love Schedule SE.  

Personally, I would use an attorney just because it's the one document that is designed to protect me.

That's one of those things that could have catastrophic consequences on your financial scene if you screw it up.

Just my opinion.

Are you likely to be sued in that line of work? I know nothing about it. Do you have a lot of assets you are worried about? I have two LLC's but at first glance something as small as you are describing might not need one.

Last year, I was right next to a woman who faked a fall in the local grocery store.  As she got up and walked away, I went up to the customer service desk and gave them my name and phone number.  I told them that they may want to use me when that woman sues them.  Sure enough, a few months later, I got a call from corporate asking me about it.  She was suing them.  Surprise.

There are vultures out there.

If someone wants to sue the gym, they arrange to get themselves hurt.  "Ouch, he told me to pick up that weight and I hurt my back.  It's his fault.  Now, I need to sue him and and gym for damages."

Ok. I'll figure out the site. Starting to get a picture of what I need to do here. I don't think sc requires an attorney.

I work with people 1 on 1 including seniors and some high level junior golfers. If they get hurt during a session I'll almost certainly get sued. I already have liability insurance but I want to protect myself. No huge assets. A house with some equity and my retirement accounts.

Is 1 million per occurrence/3 million aggregate enough coverage?

Makes sense. My dad said something similiar...

Ok, starting to figure this out.  Will it be ok to use my home address as the business address?  Should I get a PO box?

Considering Legal Zoom.  It'll cost me an extra $150 or so but I'll be more confident it's done correctly.  

Any down side to this route?

Thanks.

Lol other than being $150 lighter in the wallet for IMHO no reason, I know it is a good setup.

LLCs aren't about tax liability, they're about not losing your house when some chick you're "personally training" twists her ankle and decides to sue you for everything you own.

No.   In VA, it's  a one-page form you fill out all online.  Bet SC is similar.

ETA - Getting an EIN is similarly easy at the IRS site - all online now.

For the address.

I got a box at the UPS store so I don't have to use my home address.  My question is can I use that as the physical address?  I really don't have a physical address.  I lease space from my gym on a per use basis.  Could that be considered my physical address?  From time to time I also go to peoples homes and do in house stuff.  

What should I use as my address?

I understand that and that's the reason I'm doing this.  Just figured I'd throw that out there.

Are one or more of the members of the company liable for its debts and obligations under section 33-44-303(c)? If one or more members are so liable, be prepared to specify which members, and for which debts, obligations or liabilities such members are liable in their capacity as members.

What does that mean?  I have to mark yes or no...