If you’re looking into this, congratulations. You’re either looking to step up from a sole proprietorship or you’re completely new to business and you’re looking to build a foundation for the rest of your life. For this we commend you - starting and operating a business is no easy task; fortunately, there are those like you who would gladly try.
At JZB MEDIA we have the opportunity of working with driven people who love making things happen, a common question we field from those driven people is: “how do I form an LLC?” In this post we wanted to help bring clarity to this question.
What’s an LLC?
An LLC, which stands for "Limited Liability Company," is a type of business structure that lets you classify your business as a separate entity from you personally. This allows you to keep your personal assets separate from your business assets, and protect them from your business' debts and liabilities.
You can open bank accounts, enter contracts, hire employees, and obtain business licenses and permits under your LLC. Most states require an annual filing and fee to keep your business in good standing.
What are the benefits of an LLC?
Requires fewer formalities
Unlike with a corporation, you aren't required to have a board of directors or shareholders with an LLC. You have more options in setting up your management structure.
Protects you and your assets
An LLC protects you and your personal assets—including your car, home, and bank accounts—from liability if your business is ever sued or incurs debts.
Gives you tax flexibility
With an LLC, you get to choose how you'll be taxed. By default, LLCs are taxed as pass-through entities, but you can decide to be taxed as a corporation or an S corporation.
How to I form an LLC?
Back in the day you have to retain a lawyer to submit the necessary paperwork to your state to form an LLC. The good news is, those days are behind us. You can now use a service like Incfile to submit the necessary info to your state to have your company formed as quick as possible.
Do you want to start a business? YES
Does that business need to be an LLC? YES
Go to Incfile to start the process of making it happen.
Disclaimer: We're not legal council and we're not liable for any issues that arise as you're creating your company. If you're concerned you should contact your legal council for advice.