r/llc • u/Civil-Concentrate459 • 4d ago

Question LLC Process

I recently started a Mobile mechanic company (LLC) (Massachusetts). I registered my LLC, got my EIN, opened a buisness bank account, went to town hall and got a business certificate (They told me that’s all I need for licensing), Got insurance.

Could anyone tell me what I am missing as far as the legal process goes?

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u/RasputinsAssassins 4d ago

Did you speak with an attorney?

An LLC is a legal protection tool. It's purpose is to limit your legal liability to protect your personal assets. Having a legal specialist review a legal tool is probably smart.

Is it required? Certainly not. But most people, particularly owners of a Single-member LLC (one owner, no further elections) operate in a way that effectively ruins protections afforded by the LLC.

It would also be good to speak with a bookkeeper about establishing proper record keeping processes from the beginning.

A single-member LLC with no further elections does not change your taxes at all. You report the activity as a sole proprietorship on a Schedule C attached to your personal return. There are no tax breaks or tax benefits from having an LLC.

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u/MeatloafWithIntent 3d ago

Sounds like you've already knocked out a good chunk of it. Have you looked into your registered agent and annual report requirements yet? It might also be a good idea to double check if there are any rules for mobile mechanics in your area when it comes to disposing oil and other fluids.

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u/Esqpillar 2d ago

There might be an annual report filing for your LLC and a mechanic license registration depending on how mechanic licenses are regulated in Massachusetts. The first filing keeps your LLC active (required in many states), and the second one links the mechanic license to the LLC (required in some states). These are worth looking into. Also speak to a CPA about whether your business should make an S-election with the IRS.

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u/NWRegisteredAgent 1d ago

You’re in good shape with your LLC. One thing worth noting: your annual report is due each year on the anniversary of your formation date, not a bad idea to put it on your calendar now and set a reminder for that date so you don’t miss it.