I strongly suggest you see a lawyer and tax professional. evidently you plan to hire your friend as an employee rather than having him as a partner. this is important because if you are the only owner, you'll will file a schedule C with your tax return. whereas, if he's also an owner, you have a partnership which requires filing a partnership return. there should be a written partnership agreement. I can't tell you how many times I've seen partners end up in court because there is no written agreement. A thinks they agreed to X while B thinks they agreed to Y. court and attorneys at that point are expensive. while you can go on line and set up your LLC, a lawyer would also advise you to other legal requirements such as filing annual franchise or other reports required under state law. failure to file them could result in the company losing its LLC status.
if your friend will be an employee, you'll need an EIN for the LLC and be required to file payroll tax returns. you will also have to timely pay in the withholding taxes. also with an employee, workmen's compensation insurance may be required. i would strongly recommend consulting a tax pro, who could get you set up to meet filing and record keeping requirements. there are many tax laws affecting new businesses. the pro could also advise you as to the need, if any, to collect and remit sales taxes.
put another way, you have a lot of boiling pots with us knowing nothing about them. to give sound advise in this case, other than to consult pros, is not really feasible. You really need to have people look at the whole
rather than just a part.
