Forming an LLC is a pretty simple process and relatively cheap when compared to some other options when forming a company (C Corps, S Corps, etc). Everyone’s situation is different and so it’s a good idea to learn a little bit about each type of legal structure and make the right decision for your financial and tax situation.
- You need to file your paperwork to form an LLC with your state. Remember you need a permanent address and someone available during business hours (in case you get sued). Because of this requirement, usually small businesses use a service like CorpNet, which charges around $200 to file your LLC paperwork and will list themselves as the registered agent for a year.
- Next you’ll need an EIN (employer identification number) from the IRS. This part is very easy! Just follow the simple steps on the EIN Assistant site provided by the IRS. It only takes a few minutes!
- You may want to set up a DBA or Assumed Name to run your business under. For example, if you named your new LLC “Jane Smith LLC”, but you want to call yourself “Super Cool Widgets Company” you’ll need to file a form to do that! You’ll want to find the Secretary of State website for your state and there will usually be a link to register a new name for your company. There is often a small fee and simple instructions on what the requirements are for your state.