Capitol Investment in a startup LLC...

[Just not me]

What is the name of your state? NJ


I have been working under a proprietorship for this past year. I am now ready to form an LLC. I have worked in this trade for over 20 years and have accumulated all of the necessary tools and equipment I need to run my business. As a proprietorship, I can write off all my assets for the next 5 years, (about 150,000.00 in assets)when I tried to go online to form the LLC it asks about Capitol Investments. Then on the next page it goes into legal mumbo jumbo about listing it all, or slowly putting it in as equity to the business. The LLC will operate under the ownership of my wife and I ONLY. WHAT & HOW should I list this?

Also, I have already secured a Federal tax ID number... do I need a new one?

thirdly, what changes do I need to make in my Insurance as an LLC?

fourth, sorry... I also own my fathers old proprietorship, can i Include buying his business in with the new LLC? I inherited a bit of debt with his business....

Thank you in advance!!!

 

[tranquility]

Capital investments tend to be cash, but in your situation I'd put in the book value of the equipment. (You will need to keep track of prior depreciation in case you need to recapture.)

You will need a new fed tax ID number.

The LLC will be the owner of the inusrance. I'd get a personal umbrella as well.

As to the fourth, there would need to be a lot of discussion about your goals and the numbers. What exactly would you be "buying"? You won't be able to transfer debt to an LLC if you have a contractual responsiblity for it in order to reduce your liability. This question is complex and you need to see a professional to help you decide what to do and what you can do with the situation.