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How much legal entity should I create just to get my prototype?

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mxbus100

Junior Member
California:
I am starting a beverage company and will be working with a beverage developer to create one flavor initially and put the logistics, packaging and formulation together.. I want to start off with an LLC even though it is just me so far, at best the company wouldnt even start for 4-5 months from today. How much paperwork do I *have* to perform with federally, state and county? even though I just want to work on the prototype but have the contracts between me and the developer go under my company and secure my company brand.
Thank you! Any other advice or thoughts please feel free to add
 


FlyingRon

Senior Member
First off, you don't NEED any sort of corporate entity to do anything you mention. Whether such makes sense to you depends on more information than you have presented here, but generally when you're starting up a business, running out and getting a corporate entity at the start is often premature. Forming an LLC when you intend to transition in several months to a corporation is downright foolish. Think of corporate entities as having children. Relatively easy to create, but harder to maintain, and more difficult to get rid of.

In California you form LLCs by filing the Articles of Organization form (LLC-1) and paying the $70 fee. You then also have to file an LLC-12 Statement of Information ($20) with pertinent information like your address and registered agent, et.c.. Taxwise you owe the state $800 a year MINIMUM. Additional state and federal tax depends on the LLC structure and how much income you make.
 

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