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Comment by dawnerd | Hacker News Reader

Single member LLC wasn’t as hard as I thought to setup. 100 bucks online in Oregon, near instant approval too. Make sure you sign up with the IRS for an EIN.

Signed up for Azlo just recently after keeping money in my personal, no big deal just makes taxes a little harder.

Make sure you keep records of everything. Get yourself a good receipt scanner that does OCR, like neat. Keep the physicals around too.

I’m not bothering with a lawyer, CPA until I start having a lot more cash flow. Right now it’s enough for me to manage, but I will get professionals to manage in the future.

One thing I wish I did was not use my residence as the address. Oh well, too late for that.

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Signed up for Azlo just recently after keeping money in my personal, no big deal just makes taxes a little harder.

That actually is a big deal.

https://www.nolo.com/legal-encyclopedia/personal-liability-p...

Commingling assets. Small business owners may be more likely than their larger counterparts to commingle their personal assets with those of the corporation or LLC. For example, some small business owners divert corporate assets for their own personal use by writing a check from the company account to make a payment on a personal mortgage -- or by depositing a check made payable to the corporation into the owner's personal bank account. This is called "commingling of assets." To avoid trouble, the corporation should maintain its own bank account and the owner should never use the company account for personal use or deposit checks payable to the company in a personal account.

I still don’t think it’s a big deal. Single member llc are taxed on your personal (unless you opt differently but then you should have someone else handle it). It’s the people that don’t keep good records that get in trouble. Separating accounts won’t fully protect you if you do something dumb either. You can still take an owner draw whenever you want, irs don’t care.

But yes, had I known azlo existed I would have signed up from the start. I just wasn’t about ready to pay a big bank a monthly fee when I wasn’t making money yet.

It’s only a big deal if someone sues you and wins. If you comingle assets there’s an increased risk you could lose them in a judgement. If you don’t comingle there’s lower risk of losing personal assets.

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