It can be difficult to start your own business. Once you’ve obtained the finances for your startup and want to form an LLC it might not be quite as difficult as what you think. Many people do not realize that it just takes a few steps to get it done.
Reasons You Might Choose a LLC
Forming a new company can be tricky. There are so many things that you have to think about and consider that it can be overwhelming too. There are a lot of reasons why a LLC might be the right choice for you. In fact this happens to be one of the most popular options for those who are seeking to start their own small business.
The main reason that a LLC is so popular is that it allows you to be protected personally while still having a number of tax options that are quite flexible. A LLC can offer you pass through taxation. Pass through taxation is when the owners are able to pay taxes on the income from the company rather than the entire value of the company. There is no residency requirement to start a LLC. This means that you could move somewhere new and start a LLC or that you could be a part of a LLC that is primarily located in another state.
The LLC also features less paperwork than a corporation and a lot less red tape in some industries. Plus there is quite a bit of legal protection for the owners.
Necessary Information About Forming a LLC
While forming a LLC might sound like a lot of hard work. The truth is that there are basically just five things that you need to know more about before you can get your own LLC up and running.
It’s All in the Name
Your state is going to have some laws regarding the names that a LLC can have. So make sure that you get the information that you need from the state that you live in. Also make sure that you are picking out an available business name.
Get All Papers Sent in with Filing Fees
You will also be required to fill out paperwork for your state. Depending on what state you live in this paperwork can have another name but most states call it the “articles of organization”. You will also have to make sure that you turn in the filing fee when you are sending in this paperwork. Filing fees vary by state as well but are commonly between $100 and $800.
Get an Operating Agreement in Order
After you have filed the paperwork and sent in the fee it is important that you start working on a LLC operating agreement. This agreement should list all of the responsibilities and rights of the members clearly.
Know if You Need a Notice of Intent
Some states require that you file a notice of intent before you can form a LLC. If your state is one of these you should know beforehand so that you can get it sent in. You will have to have this published in most states that require one.
Get All Permits and Licenses
Depending on what type of business you are trying to open you might need a license or permit for your state. Make sure that you know what licenses and permits are needed where you live and that you have them ready to go.
There are a lot of great self help companies for business and family law who can offer you the help you need to form a LLC.