LLCs Aren't All They're Cracked Up to Be...
aka learning the hard way
This may be a bit hard to admit, but we fucked up. This is particularly difficult to own up to because we’ve been sharing so much about our experience as an LLC that makes art. However, if we just ignored this blunder and didn’t discuss it, it wouldn’t fit with our greater message of transparency to share knowledge. So, here’s where we’re at.
We shouldn’t have become an LLC.
Somewhere along the line, in the wee early days of SIP, we got it in our little heads that we needed to be a Limited Liability Corporation. WRONG. So wrong (for us) and so expensive.
Let’s get into why-
Money. It’s no surprise this is a passion project for us. We love making books and featuring people’s work, which is why we do it. We don’t really make enough money to pay alllll the little expenses that come with being an LLC, which is why it was an ambitious move for us. Especially when we already knew “There’s no money in books.” - Deadbeat Club Press
Upkeep. You may already have an idea of how meticulous LLC upkeep can be. There is no set checklist of all the things you need, and what is essential vs what is recommended can get super confusing. We do believe if we powered through it would get easier with time, but already having one (monetary) hurdle complicated things.
The straw that broke the camel's back, however, was taxes. For those who don’t know, LLCs have a different tax day than people do (a surprise to us). March 15th is the day taxes are due for businesses- in case you need to mark your calendars. That day really crept up on us, and taxes were hard to sort. We spent a few days just researching our options for filing and decided to handle it ourselves. Making it all the way to the last page of form 1065, the schedule K, we hit a roadblock. There was a question on the form that we just did not know how to answer and couldn’t figure out from Google. Our only option was to file with an accountant. (This is where some of you may recommend TurboTax, but they don’t want to see a small business based out of NJ succeed because they were going to charge us $1065 to file.) We got in with H&R Block for a next-day appointment. It was our cheapest option, and it was not even that cheap.
We filed first and final to remedy our initial misstep of opening this LLC.
Since then, we’ve been rocking with a partnership. This is absolutely the right move for us. Everything is about to be much cheaper now that we’re dissolved, and we couldn’t be happier.
It was a tough pill to swallow- we made the wrong move. We’re stronger for it though. The only way to succeed is to fail and own your mistakes… because you’re going to make a bunch. This was just one of our first ones.
Thank you for being here in the early days to support us as we learn and grow.