Hello Everyone I'm new here. My name is Pedro. I've finally gotten the wheels rolling on a small business idea that's been on my mind for the last year of college. In one week I've learned quite a bit about LLC's and licenses.
I will be selling digital canvas prints that I designed on my own website, and they will be getting drop-shipped by the printing service I found locally. I will eventually like sell other designed home-décor items such as wall clocks, floor lamps, and other inspired home items under that same business.
1. Should I go ahead and create an LLC or is a sole proprietor enough? (are there a few immediate liabilities you can think of?)
2. I plan to co-design the latter products with my partner so we imagine splitting the probable LLC 50% - 50%. Currently we only have the designs I have created. Would it be easier to split the LLC anyway from the start? I don't want to burden my partner with 50% of the taxes when he isn't receiving 50% of the profits (YET). Any advice?
3. Do I need to wait for the LLC to be formed before I purchase anything for the business (Design Software License, Quickbooks, webhosting, etc.) or can I still deduct it as a business startup expense if I purchase before the LLC is formed?
A lot of the information I get on LLC's is for businesses that will be dealing with investors, going public, etc. As you can see all I am trying to do is a simple product sale.
Many questions, but thank you so much if you can help me with any of this!