You put your finger on one of the most important: keeping the entity finances separate from your personal finances. Never use the LLC checkbook to pay personal bills. You should transfer the funds from the LLC to your personal account as a distribution of earnings and then pay the personal bills from that account. Also you should get liability insurance for the LLC. You should also have an annual meeting with Minutes or good notes, even though it’s not technically required by the statute. It will help maintain the separateness of the entity from your personal affairs, a good defense from an attack to “pierce the corporate veil.”
DISCLAIMERâ€”This answer is for informational purposes only under the AVVO system, its terms and conditions. It is not intended as specific legal advice regarding your question. The answer could be different if all the facts were known. This answer does not establish an attorney client relationship. I am admitted only in California. (Bryant) Keith Martin sbbizlaw.com
You should talk to a competent CPA or business lawyer in Indiana to determine whether, under state law, an LLC; "S" corporation; or some other form of business is most appropriate. To help you make that decision that professional will need to know all of your goals and objectives. You cannot get the advice about the best form of establishing your business from (i) lawyers who do not practice in Indiana; and (ii) the internet. For example, that professional might advise you that you do not need an entity at all, that a sole proprietorship operating under a fictitious name (DBA) might be sufficient.
No matter the form of business, including a DBA, you need to maintain separate bank accounts with separate federal taxpayer ID numbers. You should set up a separate set of books and records, e.g., using Quick Books. You should have a separate liability insurance policy for the business. You should have separate business cards; stationery; phone number; location or P.O. Box; web site; etc. You may even want to consider doing some personal asset protection planning, e.g., transferring your residence to a qualified personal residence trust; transferring your personal liquid assets to a Nevada asset protection trust; transferring your other investment assets to a family limited partnership with a corporate GP owned by an irrevocable trust for the benefit of your heirs.
So, yes, there are many things to consider. Do that analysis with a competent local professional. Spend a couple of thousand dollars to get it right.
Sole proprietorship LLC (limited liability company) S-corporation Business partnerships Small business taxes Business debt Business finances and accounting Business insurance Commercial general liability insurance Debt Business Trusts Irrevocable trust Asset protection trust State, local, and municipal law Internet law Tax law