In this steps to create an LLC guide, what i’m going to cover is a very important question.
A lot of you guys continue to have and that is how to start a business as an LLC to stick around and as a disclaimer.
Before we jump right into everything and could really give you guys an overview as far as like:
What does an LLC do?
How to start it?
Where to go?
and more importantly
How does it apply to an online or offline business?
Then before we get into all those details, I just have to make a disclaimer I am a lawyer so I’m able to offer you guys any kind of legal advice and I will be able to connect you guys to a few online resources. I’ll be able to help you guys with any kind of legal questions that you may have pertaining to your specific situation.
So in this guide we’re just going to go over the different steps where to file if you want to do it on your own and then I’m also going to give you guys resources if you want to have somebody help you in the process.
All right so let’s jump right into it.
What is an LLC?
LLC is known as a limited liability company. So ultimately what it ends up doing is it ends up helping business owners that are just starting out to really protect and separate their business from their personal assets.
An LLC is a corporation registered at the state level so people know that you’re taking your business a little bit more seriously and you have some credibility behind it.
How to create an LLC in 5 simple steps?
I know there’s a bunch more and I know that you guys may want to know what else is on there so I will be linking some resources and links are below so just always make sure you check the related articles because I do expand and elaborate a little bit more on anything that I talk about.
Now that it may have forgotten so click over to the link so you guys will see a bunch of different resources and I’ll start pointing you in the right direction so you can get started really quickly.
Alright, so with that being said we’ll jump into the different steps that it takes for you to actually file your LLC with your state so then this way you’re aware of
What steps are upcoming?
Where do you need to go?
and more importantly
The first step in starting your LLC then knows where you need to go and register this so in Nevada you will have a website called Nevada Silver Flume and what that is it’s a state sponsored and created website that handles all of the business licensing and all of the registration online but with that online portal you’re able to pretty much create your entire LLC, register your business, license file, all of your paperwork online they make it super easy and simple for you to do.
Now in your state I’m pretty sure there’s a website similar to it but in some cases there may not be.
It may not be that simple, you may have to go to a couple different sites and if that’s the case for your situation I do recommend that you definitely do some Google searching just make sure that you’re looking up your state’s business registrar your state LLC formation and just look at the end of the URL to make sure it’s a .gov address or a .CA or a .state address that is a legitimate site and then those websites will more than likely help you and guide you through the process of actually submitting all your paperwork.
But in the case that you don’t have that and it may be it’s too complicated. There are going to be some resources down below that for a nominal fee they streamline the entire application process you do on the website and they follow everything else for you.
But just be aware that your state may already have an online portal where you can do everything yourselves but once again if that’s overwhelming some of them are like corporate Rocket Lawyer, Legal Zoom etc.
They all offer it for a discounted price. That’s going to be your first step in actually creating your LLC.
It’s just knowing where you need to go and file alright, don’t get scanned by anybody, don’t pay extra, learn where you need to go and file because once you have that down and you’re able to pretty much.
Just submit your applications and you’re good to go
So the next step is in actually forming the LLC.
Some of the paperwork involved is going to be like the articles of organization.
Alright so in this paperwork what it’s pretty the state is telling them who’s involved with the business? where is the business located? and any other important information that your state requires.
So the articles of organization is one piece of the paperwork that you’re going to be submitting.
Next up another paperwork involved with the process is going to be the list of officers.
Now the list of officers is something that’s going to be filed every single year and the state is going to require it from you every single year.
So when you first start your LLC I believe they give you like 30 days for you to file this so that’s just going to include who’s involved and who’s actually managing the business. Whether it’s managers or members and there’s different legalities to that.
So once again just make sure you look into it before choosing either one and the list of officers is going to do the thing that gets published online as well, so it’ll actually tell everybody who’s a part of that business and all of that information the state needs to have every single year.
So that’s going to be something you always file and resubmit on a yearly basis.
The next thing involved with your LLC is going to be an operating agreement but just keep in mind that an operating agreement isn’t necessarily filed with your state like they’re not going to request it from you.
So this is going to be a legal document that you create between your business partners or anybody that’s involved in your business that ultimately lays out how the business is going to operate so that’s in a nutshell what an operating agreement is?
Now this document is extremely important because it outlines the way that the business is going to operate.
Who has? What percentage? How the business dissolves if there’s any legal disputes with the numbers? How are those cases handled?
It definitely helps outline how the overall business is going to be and it actually also protects from any outside type of things that are involved with your business as well.
Once again this is an important document you’re not going to file but you will need it so make sure that you either consult with an attorney to dress something specific to your circumstances because buddy has a unique circumstance.
Or click the link for Rocket Lawyer they actually have legal formation documents. You can pull one off don’t kind of be guided through the process and then if you have any questions you can always consult with us so that’s always a good thing to do if you’re not willing to dish out thousands of dollars for an operating agreement.
You can head on over to us and we’ll walk you through it really cool and we’ll also help you from other kinds of documents that you’ll need throughout the process and the journey of your business.
Now that you have that all squared away you’re simply going to follow your business license and that’s going to be a fee that’s paid to your state letting them know that you’re doing business and then if there’s any other kind of County or city fees that you have.
You also want to make sure you check into those and pay those licenses. So you’re up and running and ready to go and there’s no issues from the government side.
So once you have those things in order one of the things that you’re going to want to file is a doing business ads and a doing business as is simply what name your business is going to legally operate.
For example, If it’s three of you and you decide to call your LLC three members LLC but then if you want to do like your business these are wake up and win or something like that, it’ll be the LLC’s formed with the state has three members LLC and then you’re going to file with your county or your clerk’s office as the DBA being wake up and win.
All right so that’s the business name that people are going to know you’re going to have your websites for it. You’re going to have your trademarks or whatever it is.
The LLC is the legal corporation registered with the state and the wake up and win is going to be the thing that the customers see.
So you’re definitely going to have to consider an ETA if it’s going to be different from your LLC name just like you would if it was a sole proprietor or a partnership.
The next step that you’re going to take is you’re actually going to go to the IRS gov website and the IRS.gov website.
What they’re going to do is they’re actually going to help you register your tax ID number associated with the business license and the business you’ve created in your state.
So you’re going to enter in the information that you got from your state side over to the IRS and then you’re going to let the IRS note some details about your business and then they’re going to give you a tax ID number and that tax ID number is essentially a social security number for your business.
Just like when you’re born you’re giving a stamp of approval from the state let them know “hey!! that is a registered person, here’s your social security number, here’s the ID number that’s associated with you a business” is treated in the same manner it’s treated as a person.
So the IRS gives you a tax ID number that you’re going to use on all legal documents letting them know that “hey!! look this is my information associated with my business”.
And once again it’s important to note that the IRS allows you to do this free of charge.
What are the benefits of an LLC?
1. The first aspect of the LLC is if in the case of any kind of lawsuits or anything pending against your company you’re not personally liable for it and that’s the beauty of the LLC is that it protects you, gives you that legal veil.
2. The second aspect is obviously an attacks purposes allows you to have different tax incentives and benefits so as always you want to definitely consult with an accountant or a bookkeeper or a legal opinion for how it pertains to your specific tax situation because it all depends on different brackets that you’re in and of course when you have an LLC, you really are more credible your businesses in just a one-stop shop.
3. The third benefits of an LLC is that you’re able to sell parts of your company and return for investments so you’re able to bring other people on board that will want to invest in your business for a certain equity stake and then their assets are also protected because they’re not necessarily a part of the business.
They’re just investors in the business so long as the LLC has stuff buttoned up there pretty protected from any type of negative things that can happen with the company.
Well, so you guys get the right link, walk through the process like a five step process and then you guys will have your EIN number ready to go.
So now that you have all your legal documents together, your tax ID number, your business licenses, your registration, your operating agreements.
Now you’re going to a bank either bank whether it’s online or in person and you’re going to open up a business bank account. They’re going to open it up in the name of the business using the EIN number and all the information you just created and they’re going to create a business account.
Now at this time if you have some pretty good credit I would definitely inquire about what incentives they’re giving businesses that open up new accounts because a lot of times they will want to get your business and give you something apply for like a line of credit or a credit card and that all helps in helping you grow your business.
So with that information you’re now an entity acknowledged by your state and the government as a business.
So congratulations to forming all that and to creating and starting your journey with that you’re able to open up your websites if you’re opening up a store or if you’re taking out a loan or if you’re bringing on partners you are now good to go when it comes to that.
So that’s the steps involved with forming an LLC and of course after you’re done with the paperwork you can also submit for sales and use tax which allows you to buy wholesale and you don’t get taxed on it and it allows you to collect taxes from the items that you sell in your state.
All right so just keep those all in mind as you guys are moving forward you are now good to go and operate as an LLC.
I hope that this Article helps you really clear your mind and be able to say “hey!! there’s a lot easier than I thought” because it is a little bit more simple but in the case that your state is really complicated and there’s a bunch of different things going where you have to go and submit these different applications.
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