LLC after January 1st?

by Mary
(NY, NY)

Hi, I am thinking on forming a single member LLC in NY.
Is there any benefit on waiting until January 1st to file my papers?
thanks

Answer

The biggest advantage is that you wouldn't have to file a tax return for your single member LLC for 2008.

This could be a disadvantage, however, if your LLC would show deductible losses in 2008. If your LLC would show deductible losses in 2008, then by starting your LLC in 2009, you won't be able to take advantage of those.

Many people choose to start their LLCs in January because it allows them to have a business year that corresponds with the calendar year.

I know that Legalzoom lets you purchase an LLC today, but not have it actually filed until the New Year, as many people don't like to start businesses right at the end of the year.

Starting off the New Year with your company is a good idea. Take the next couple weeks to get your hands on some good small business accounting software and get organized, so that when you officially incorporate your LLC in January, you are ready to go.