Do I need an LLC, do I need a new bank account and do I need any permits regarding a shopping delivery service?

Get Legal Help Today

 Secured with SHA-256 Encryption

Do I need an LLC, do I need a new bank account and do I need any permits regarding a shopping delivery service?

I’m a college student looking to start a specifically kosher grocery shopping delivery service with some friends. We were wondering if we can start the business without an LLC to get a feel of the market for it, and test out prices, technology and net revenues. Also, if we are being paid online instant payment service would we be able to keep track of the money with the help of an accountant and lay out the money for the grocery trips ourselves? Initially, it will just be the founders completing the deliveries, which is why we wouldn’t mind laying it out. Also, are there any certificates or permits we would need from the to start a business in this realm?

Asked on November 7, 2018 under Business Law, Illinois

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

1) LLC: not required but strongly recommended, since the cost to create is minimal and it will protect you from most debts or liabilites resulting from the business. The added protection is worth the cost.
2) Separate bank account for the LLC (if you take our advice and set one up): also strongly recommended. Separating business money from personal money will help maintin the integrity of the LLC, so you get the advantage of the liability protection, and will also facilitate taking any business expenses (e.g. gas for deliveries) as a tax deduction.
If you want to front the money for the deliveries, etc. you and the other "member" (term for an LLC owner) can contribute capital to the LLC.
3) Nothing other than registerting your business, which will be taken care of by filing the LLC in your state.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption