Starting your own business will prompt you to make a number of important decisions. On a very basic level, you will need to determine which product or service you are providing. You will also need to identify your target consumer base and figure out how to effectively market to them. On top of those items, you will also want to locate office space or a retail front, and make important hiring decisions for your team. There is also the matter of how to structure your business, and you may be wondering how to make my company an LLC. A Limited Liability Company can be a smart business formation, and knowing how to create one can be a valuable bit of knowledge.
If you are an entrepreneur, or if you have spent any meaningful amount of time in the business world, you know business structure matters can come with complicated paperwork. In truth, setting up an LLC can be done online in a streamlined way. Read on to learn more about how you can take the next step with your business.
Getting Started on Forming Your LLC: Weighing the Advantages
Limited Liability Companies are not the only way that you can structure a business. You may also land on a sole proprietorship, a Limited Liability Partnership (LLP), or even a corporation as a model that suits your business. In truth, LLCs are very popular for two basic reasons: they come with valuable incentives, and they are relatively easy to form and maintain.
In an LLC, you and the other members can shield your personal assets with limited liability protection. This is a considerable draw, as businesses often face bankruptcy or lawsuits, and preserving your home or savings accounts is an important concern. The management structure in an LLC is also flexible in nature. In your operating agreement, you and your members can decide on who will be tasked with certain duties, whereas in a corporation, this can be a bit more rigid.
There are also tax benefits to forming an LLC. The Internal Revenue Service (IRS) will treat your business as a “flow-through” enterprise. This means that revenues earned by your business are not taxed until the members of the LLC are paid out and, in turn, pay personal income taxes.
Assembling Your Articles of Organization
LLCs are available in all 50 states. While each state will have their own specific rules and requirements, as a general rule of thumb, you can expect to file what is called Articles of Organization (sometimes called a Certificate of Formation). This document will register your LLC with the Secretary of State’s office. To complete this document, you will need to provide the name and address of your business, the contact information for your registered agent, the names of your LLC’s members, and perhaps a smattering of other information.
How to Make My Company an LLC: Work with Us!
At Corporation Center, we offer easy-to-file web forms for LLCs in all 50 states. Take a moment to browse our website’s navigation, or contact us by phone or email today to learn more about how we can assist your business.