Starting LLC

[PersonalStash]

So my business partner and I are starting an LLC. The process of getting everything is legal is being worked on by a lawyer as we speak. The question I have is the accounting part of it. What we do is pretty simple. We manufacturer and sale liquid that is used in electronic cigarettes. We are going to be selling to a few stores and we're also going to have an online store. Eventually we will be selling hardware and accessories as well. So all we do is buy from companies and then sell to companies and people. Any ideas for the best low cost software for this?

[Blessed]

I don't have an exact software answer - although Quickbooks comes to mind as something that would probably work. I would suggest finding your go-to accountant for taxes and asking them if there is a software program they recommend. Then if they need reports, etc... from you they can advise you as to how to generate them. I'm not saying that you need an accountant for day-to-day operations, but it's like a lawyer, good to have one on your speed dial!

[Freelancier]

Quickbooks Pro should be just fine for what you want to do. Work with your accountant to set up the accounts in it before you get started so that you get everything into the right place for the accountant to handle your taxes at end of year.

After having worked with a lot of customers on something like this, I recommend that you enter all online customers under a single "online customer" customer record within QB (instead of a new customer record in QB for each person purchasing online) so that you don't bloat QB with information you don't need there. Keep the name/address/phone info elsewhere for remarketing, since QB isn't good at that anyway. The only customers who should be in QB are the stores or distributors (if you end up selling to them), and those customers eventually wants terms anyway, QB is great for tracking that.

Also, don't set up a two-person LLC with each person owning 50%. Someone has to have the final say or else the business can get stuck when the partners get into conflict (and partners almost ALWAYS get into conflict over something eventually). Also make sure you negotiate buyout clauses so that when one of you gets tired of running the business -- or needs to go get a real job for whatever reason -- that you have a process already agreed-upon so that one member can buy out the other without any drama or hardship (e.g., coming up with all the money up-front or having to keep paying long after the partner has left).

[shrinkme]

We have been using quickbooks online for both our consulting practice and our distribution business. It is doable and has a low cost.

[PersonalStash]

Awesome we found a great deal on Quickbooks. Thanks!