How To Start An LLC Quickly And Easily
How to start an LLC in just a few short steps? Many people think they know how to start an LLC but often find themselves wishing they had more time. Forming an LLC is not difficult. In fact, many people do it themselves without the help of an attorney. Here's how to start an LLC quickly and easily.
How To Start An LLC - A Guide With Easy Key Steps
To begin and run an LLC, you only need to pay a minimal fee, file the proper paperwork, secure any other business licenses or permits, pay the state tax fees, pay the required notice or tax forms, and keep up compliance on a yearly or quarterly basis. Most small business owners prefer to set up an LLC rather than a sole proprietorship because an LLC is less confusing to the IRS. It shows less activity than a corporation, and if a sole proprietorship is ever held bankrupt, the assets it owns pass through its name and are not subject to the control of anyone else.
- The first key takeaway for how to start an LLC quickly is that you should avoid any LLC structure that does not provide for succession. Any self-employed individual who wishes to establish an LLC has to follow the same process as any business owner who wants to pass control of his or her firm to another individual. In the case of an LLC, the person passing control (the founder or director) retains the power and authority to run the business. He or she can select the members he wants to retain, hire employees, get involved in all business decisions, and control the day-to-day operation. Therefore, an LLC provides no personal asset protection for the founder of directors.
- The second key takeaway on how to start an LLC quickly is that you need to choose an appropriate name. An LLC is generally filed with the state, and after completion of the filing, the LLC will become a registered corporation. Therefore, all LLC names are available for use. However, some people prefer to use their names as their businesses' trademarks. In this case, you'll need to register your business name in your particular state before incorporating. Some states allow for other types of business names to be filed as LLCs, so make sure to check with your state's laws before choosing a name.
- The third key takeaway on how to start an LLC quickly is that an LLC requires a written operating agreement. An operating agreement is essentially a contract that details the way the LLC will be managed and operated. An operating agreement will dictate the principal owners' roles (and their responsibilities), as well as any specific rules governing the LLC, such as who has the authority to transact business with the public or with other LLCs. All LLCs must have an operating agreement, and it needs to be drafted properly to avoid future legal problems.
- The fourth key takeaway on how to start an LLC quickly is that you'll need to choose a qualified registered agent. A qualified registered agent is an individual who is legally authorized by the person filing the LLC to act as its registered agent. This person should be someone who can sign documents, make phone calls, respond to emails, manage LLC accounts, and respond to queries from potential customers. In other words, an effective registered agent minimizes the chances of LLCs being deemed unprofessional by various government entities, and it also makes it easier to do business using an LLC.
- Finally, the fifth and final key point on how to start an LLC quickly is that you'll need to get started building your business plan. Your business plan is a road map to help you follow through with everything that you need to successfully set up an LLC. A well-written business plan spells out the purpose of the LLC, sets out the rules for how LLCs are established, explains how members will be added, and includes any tax implications of your business idea. So don't rush through this process; take your time and think about what you want to achieve with your new LLC.
An LLC also does not offer any asset protection to its registered proprietor or partners. Unlike corporations, personal investors cannot pass through their money into an LLC and expect the same protections that they could receive from a corporation. For this reason, many small business owners prefer to set up an LLC as soon as they separate from their assets. This is especially true for wealthy entrepreneurs who want to ensure that their money is protected from possible lawsuits stemming from self-dealing. A pass-through entity permits the same legal protections to be enjoyed by wealthy business owners while still retaining their privacy.