We outline how to start an LLC, including picking the best state for your LLC incorporation, the legal benefits, and the steps after you set it up
How to start an LLC: overview of legal benefits of an LLC
- Asset Liability Protection – Establishing an LLC company separates your personal assets from your company’s assets. This prevents your personal assets from being used to pay business creditors during difficult times.
- Pass-Through Taxation – The company’s profits and losses are passed on to its owners and are reported on their personal income tax returns as if they owned a partnership or sole proprietorship. This prevents “double taxation” of property owners caused by paying taxes both as a company and as an individual.
- Employer Identification Number (EIN) – the EIN allows you to file taxes and hire employees. Getting an EIN is easy.
- Access to Administrative Loans for Small Businesses – The state provides small business loans with low interest rates and flexible terms.
You can hire a registered agent to set up the LLC for you. Please note that the requirements for forming an LLC vary from state to state.Read this guide on choosing the best state for LLC establishment.
Steps to start an LLC
Select a state to register the LLC –
This is one of the most important steps to start an LLC. You may choose to incorporate your LLC in Delaware because it has low taxes and maintenance fees, and the laws aren’t that complicated. Wyoming is also on that list, as is Nevada. If you are looking for a state with strict data protection laws, we recommend opening your LLC Company in Nevada.
Name your business
This is the first and fundamental step in starting a business and also in how to start an LLC. You must be given a unique name for your LLC. Your LLC name should be different from any company in the United States. Note that there are certain rules to follow when naming your LLC company. Your company name should have these words at the end depending on the state you will be inducted into.
How to set up an LLC in Florida
Get an EIN
You can get an EIN or employer identification number from the IRS. This is the tax ID that you can use to file and pay taxes, hire employees, and pay their salary or wages. You can get your EIN online through the government website or third party services.
Hire a registered agent
To ensure you receive all important documents and correspondence with the state, you can use a registered agent service. Hiring a registered agent will make work easier as he or shee will be responsible for receiving and forwarding all important documents so that you don’t miss a deadline.
File Articles of Association
Your Articles of Association should contain information about your LLC business, information about your registered agent, and the names and addresses of your board of directors. Once this has been submitted to your educational status, you are ready to start doing business.
Post incorporation checklist
Arrange for your business address
If you want to receive all business email, customer email to a new business address and your bank requires a separate physical address that does not match your registered agent You must obtain this from a mail forwarding service provider or a virtual office service provider. There are many companies in the United States that offer this type of service. Many of them are in our recommended states: Delaware, Nevada, and Wyoming. They offer services such as online document tracking, weekly and monthly email forwarding.
Open a business bank account
If you want to accept credit card payments or open a merchant account, you will need to open a bank account. Some banks may accept your registered agent address as your business address, but you must first establish an arrangement with them to have your bank statements or correspondence sent to a mail forwarding service or email.
Get a business phone number
Getting a business phone number means your customers can call your company at any time for questions or appointments. Most telephone service providers offer you the option of forwarding all calls to any number you want to use, or through a VoIP service that routes calls over the Internet instead of standard voice phone lines. Some telephone providers may also offer various online features, such as voicemail or faxes that are delivered by email. But it could also be helpful to set up a business fax number.
Build a website and creating a business logo – To successfully run an online marketing campaign, every business should have its own brand and online presence. To ensure that your company is ahead of the competition, you need to create a unique and memorable business logo. It should represent what your company stands for while attracting customers.
First, you can create a simple business website, buy a domain name, and install a content manager like WordPress or Weebly. Going this route is usually cheaper than buying WordPress straight from their website.
