So what is the most effective way to keep your LLC up and running without spending too much money while business is slow? The LLC itself isn’t much but how about insurance, accounting, state taxes, etc. Is there a “cheap” way to keep it all up and running and not spend several thousand along the way?
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Not an LLC here (sole proprietor) but in my case pretty much the answer is no.
I can and do drop insurance on vehicles I am not using, but unless I want to put my contractors license to "sleep" there is no real costs saving available to me that I have found.
"Sleep " is legal here in Or. but cannot go for over 2 years or you have to start all over again with the licensing requirements. I still pay all the carrying costs.
I have investigated this issue several times in the last 7 years and generally the people in the know tell me that when it comes time to restart the active business the costs to reactivate from "sleep" are steep. Insurance companies will view you as if you are a new startup and any experience ratings you have gained go by the boards.
What I do do with building liability ins. is call the agents and have them use the lowest minimum dollar value of business they allow. that helps some but not a lot as it is the first $ amount of business that are expensive.
Then I try to do enough small work over weekends to help defray the carrying costs of the idling business and keep it minimally active. Pretty easy for me as I have a number of people who always want me to do something for them.
Here in Western WA the operating costs of an LLC and a sole proprietership are the same. Taxes are a little different, but only if you choose to be taxed as an "S corp". If you choose to be taxed as a "disregarded entity" there is virtually no difference between being an LLC and a sole proprieter.
Either way you need to pay for everything you mentioned, don't you?
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I'm in Tampa but if it was worth my while, I would go have a look. Let me go reply.
Thanks, Piffin!
Thanks again Piffin. He and I have been in touch so maybe it will result in some work.
Even if it doesn't I still appreciated the "heads up" on the lead as I might not have seen it.
Mike