When planning a business, it is important to decide on the legal structure beforehand. It will not only affect the basic requirements and costs but also the fate of your future business venture. Here we will answer the questions of can I file for an LLC on my own?
How to File for an LLC – Overview
A limited liability company is one of the most popular modern methods of running a business. Hundreds of new LLCs are created across the country every day, as this structure combines the best features of a general partnership, corporation, and sole proprietorship. With an LLC company, you can enjoy the benefits of limited liability and a flexible management structure that allows you to customize your business in the best way possible.
These days, the market offers numerous best LLC services online, which can take care of all the paperwork of your business startup. You can hire one of these top LLC companies or create it yourself using a useful business formation guide site widely available on the Internet.
Three Easy Steps to an LLC
Individual or LLC Service as an LLC Registered Agent
Before you get down to LLC formation, the company owner must select and appoint a registered agent by obtaining their consent. This requirement applies in all states without exception. For example, Nevada LLC Act NRS 86.231 says “A limited-liability company shall have a registered agent who must have a street address for the service of process.”
Who can be your registered agent? In fact, the range of potential candidates is quite extensive. As a rule, both an individual and a professional service may perform these duties, as long as they meet the following requirements:
- Have a physical address in the state;
- Are available during regular business hours at the registered office to receive official correspondence addressed to the LLC in person;
- Are an 18-year-old resident of the state (for individuals), or have a license to conduct business in the state (for LLC formation services and other legal entities).
Of course, you can save money by giving up the business formation service and acting as your own registered agent. However, there are several drawbacks.
For example, it will be impossible to leave the office on business days for a vacation or business trip. Another inconvenience is the possibility of receiving a legal notice in front of your clients or potential partners. For that reason, professional services, such as LegalZoom, Rocketlawyer, or ZenBusiness, are the most appropriate option. They will provide perfect record-keeping as well as a number of useful services at an affordable price.
LLC Formation Documents
Once you have decided to file for an LLC and have chosen a registered agent, it is time to start the business incorporation process through a specialized government agency. This is a key step in setting up your business because, after the approval of the formation documents, your company will be officially formed.
The content and volume of the Articles of Organization depend on the state. You can entrust the preparation and filing of this document to a professional website for LLC or do it yourself by filling out the official form available in most states.
Usually, the documents for an LLC formation contain the following information:
- Name of the LLC;
- Name(s) and address(es) of the organizer(s) of the LLC;
- The address of the main office of the company;
- Mailing addresses of main and physical offices, if different from office addresses;
- Name and address of the registered agent (if you hire incorporation services as your registered agent, then they will provide their own address);
- Whether the LLC will operate indefinitely or for a specified period;
- Purpose of creating the LLC;
- Management structure;
- Responsibilities of the members;
- Requested effective date of articles;
- Contact person in case of any problems with the application.
The cost of the business formation and how to file the paperwork varies from state to state. Some use online filing options only, but most states allow both online LLC formation and hard copy filings. The processing time can range from a few days to a couple of weeks, but expedited service is often available.
Activities after LLC formation
After the establishment of a corporation, most LLCs need to get business permits and licenses to start operating. Their type, amount, and cost depend on the specifics of your business and its location. In addition to federal and state requirements, there are also some local regulations that can be applied. Some cities and counties may have additional licensing rules for companies registered there.
To find the necessary licenses, you can do your own research or hire any of the affordable company formation services that will handle this for you. One of these companies is LegalZoom, which is the best LLC service online in the business formation and support industry. With the years of experience and excellent reputation it has, you won’t have to worry about missing any important things.
The specialists of this professional service will do comprehensive research and provide the forms you need for your LLC.
The most common licenses and permits include the following:
- Business license;
- Sales tax license;
- Seller/reseller permit;
- Zoning and land use permits;
- Building permit;
- Health permit;
- Signage permit;
- Home occupation permit.
Be ready for the fact that for some licenses and permits, you will have to attend some courses.
Licensing is an important step in LLC incorporation, without which a company cannot function correctly. Trying to start operating before obtaining all necessary licenses and permits can lead to serious consequences for your business.
Can I file for an LLC on My Own – Summary
Today, an LLC company is very popular with both aspiring and experienced entrepreneurs across the US. It refers to a simple and reliable business structure, which provides significant advantages to business owners. Many people appreciate an LLC for its limited liability protection, flexible management structure, and favorable taxation.
A limited liability company usually has fairly simple startup requirements, so we have no doubt that you can handle the task yourself without any difficulties. However, there are dozens of LLC formation services that will take care of your business formation for a reasonable fee. If you are looking to file for an LLC, be sure to look at all of the resources available to you.
You can not only use the professional services but, at the same time, save a lot of money. For example, IncFile, one of the best LLC services, offers the cheapest LLC formation and can open your LLC for nothing. Of course, you will still need to pay the state fee, the amount of which depends on the state of your choice. In addition to LLC formation services, if you hire IncFile, you will also get one year of free registered agent service. There is no doubt that this is a great offer.
Furthermore, most LLC creation services provide a wide range of additional services to make the company’s work easier. They can help with issues such as annual reports, foreign qualifications, amendments, obtaining EINs, and more.
Professional services, of course, require you to pay, but the prices are usually quite affordable. It will not only save you time and energy but can also be a great investment in the future of business, which will speed up its development.
For more articles like this, be sure to check out the small business section of the site.