My friend and I are looking into starting our own design agency. The LLC would be based out of Texas, but the other employee would be based out of North Carolina. We would both be full time employees of the company, so she would get paid that way. Collectively, we would most likely be making less than 100k total for the first few years (it's still meant as side work, not full time). We want to create and LLC for protection as well as looking like an actual business. Lots of people associate "free"-lance incorrectly and we would like to avoid those types of people. Some questions:
We both do freelance work currently just through our personal names. What kind of taxes are we looking into paying into the business (besides setup of everything) compared to being a self proprietor? (I'm seeing that the general answer is no, as long as income is <200k, but not certain).
Being out of state, will she incur more taxes from the money being now filtered through the business?
What kind of forms are we looking into needing/providing when switching to a LLC from freelance work? Normally we just get 1099's, what would that be now?
Are LLC's required to pay taxes 4 times per year? We would definitely get an accountant for things, but being as this is side work, there will be times where we choose to not take on clients, which could cause multiple months of no income. Obviously we would save for when we need to pay taxes, but is there a magic number that says "you must now pay four times per year".
The LLC would be 50% 50%, but that work would not always be that. We will be taking on smaller project through the company, so there will be times where one of us could potentially be making more money. Are we setting ourselves up for disaster if one is payed more than the other while still having equal ownership?
Sorry for the newbie questions, it just seems like most Google results are a mixed bag of opinions.
I would also love any recommendation on great books to wrap my head around some of these concepts. I understand a great accountant will be needed, but I also prefer to have an understanding of what's happening. Thanks!