Looking to register a business just to get the ball rolling but have no idea when I’ll get around to actually working towards it. Can I register is and literally sit on it for *theoretically* years without incurring any additional fees? Or are there other hidden fees for just having it registered? Sorry if this is the wrong place to ask this. If it is, can you point me to the right subreddit?
In Michigan I have to pay a yearly renewal fee for $30 or something. Just wait till you actually want to start it. I had a whole plan ready to execute when I registered mine.
In California, the state’s franchise tax board charges a yearly fee of $800
Just another thing to add to the list of reasons why id never live in California XD
It really depends on which state you live in. It varies slightly from state to state. You will get a bunch of mail for your new business when you register, and many of them say things like “You HAVE to have this or that” but no. I’ve had 3 different LLCs and they only thing you have to do is file taxes for them or your LLC can be unregistered.
do you still have to file taxes if you don’t do anything after creating the entity? Like if I don’t sell anything or buy anything, like literally do nothing. I know this sounds odd and I’m asking from an extreme point of view just to understand the limits of my options.
Yes you will be required to file quarterly paperwork with the state and IRS. Zero revenue still has to be reported.
Honestly, this won’t “get the ball rolling” at all and there’s no benefit in doing it until you’re ready to get to work
That’s probably a bad idea. But the answer to your specific question is that it depends on where you’re based.
The correct place to find this answer is probably on a web page posted by the local or regional government wherever you live.
The answer to the question you should be asking is something about doing things in the right or best or most efficient order — which IMHO is the lean method. It’s a waste of your time and resources to register things before you’ve even figured out what you’re doing.
Also, this subreddit is a good place to ask, and it’s great that you’re asking for advice so early in your journey. Keep that up.
Yea what this guy said ^
Thank you for the feedback. To be more specific, I’m looking into land investing. So the reason I’m asking is because I don’t want to start the cold calling and negotiations without having a business entity created. At the same time I’m assuming it will take me some time to get my processes in place and get that first lead, so I wanted to create the entity to get that ball rolling and move one step closer without knowing exactly when those leads will start churning. I’m not planning on sitting on my hands for 5 years creating the entity but I just wanted to ask my question on a bit of the extreme side so I know the limits of what I’m dealing with. So if there were any sort of recurring costs associated with just making a business entity and sitting on it for ages, I could budget the money needed or not needed to do that. Hopefully that helps add some context.
I know you could say “well just wait to create the entity until you’re ready to get going” which is what I’m doing now, I just feel like for me personally, establishing that now would help me get going.
Without googling I’m not aware of a state that doesn’t require recurring fees. You also usually need to file taxes (yes even for $0). I have filed businesses in 4 states and all have recurring fees (smallest was CO, highest CA).
What do you mean “register your business”? There are lots of different things this can mean, most do have running requirements.
In Georgia, we have to reinstate our business every year(not sure if it costs). If you miss the deadline, then you have to pay $200 to reinstate.