Entrepreneurship runs deep in the tradition of the United States. Business owners of all stripes generate livelihoods for themselves, create jobs for others, and meet the demands of the market for consumers, all in the service of sustaining our economy. For many, owning their own business is a fulfillment of the American Dream–an opportunity to shed the 9-to-5 and create something more meaningful. If you have found yourself at a point where you are ready to start your business, you are no doubt quite excited. Still, with that excitement will come a fair amount of preparation. As a part of your comprehensive business plan, you should have some idea of how you want to structure your business. If a Limited Liability Company (LLC) makes the most sense for you, make sure you know just how to set up a business LLC.
There are several different routes you can go when choosing how to legally structure your organization. For instance, there is the “S” Corporation, which allows you to incorporate your business and issue stock to generate investment. There are also Limited Liability Partnerships (LLPs), which can be a logical choice for licensed professionals such as attorneys or doctors. Most commonly, however, the Limited Liability Company is the sound choice, and as you read on, you will come to understand why.
Why Set Up a Business LLC?
In the early days of getting your business off the ground, you may be curious about why you would bother to move on from, say, a sole proprietorship or general partnership, to something more structured like an LLC. Well, in truth, an LLC is not particularly difficult to set up, nor does it require much in the way of reporting or maintenance. Additionally, having an LLC can provide certain benefits to its members.
In an LLC, you will get to enjoy the pass-through status that is assigned by the Internal Revenue Service (IRS). This means that your business will need not to pay any taxes on profits generated off the top–instead, they will pass through to the members of the LLC who will then pay personal income taxes.
You will also receive limited liability protection when you establish an LLC. In this scenario, a lawsuit or bankruptcy against your business cannot claim any of the personal assets of the LLC’s members. To put it another way, if things go south with your business, you do not need to worry about potentially losing your home.
Forming Your LLC Online
If you are ready to create your very own LLC, you can do it online using our simplified forms. First, you will need to check on what is required specifically by your state. Once you have your business’s name and registered agent in place (this is the individual in charge of receiving all legal correspondence for your business), you can begin drafting your Articles of Organization. Once completed, you can submit your documents via our SSL-encrypted web portal for processing. If you would like to learn more about our services, visit our FAQ page today.