New Jersey - LLC

Learn the Benefits of an LLC

There are many benefits to setting up an LLC in NJ. LLCs not only have more tax options, but they also offer decreased liability, reduced record keeping, and sharing of profits. They are simpler to set up and maintain, with much simpler rules and regulations. There is decidedly less registration paperwork and lower-costing startup expenses. The cost to set up an LLC in New Jersey is not as high as it is for an NJ corp or NJ S corp.

gistogram
Decreased Liability
An LLC separates your personal assets from any business decisions made or actions undertaken by the LLC
doc
Reduced Record Keeping
When compared to a corporation structure, an LLC has less registration paperwork and startup expenses
profit
Sharing of Profits
LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

But is an LLC the right business structure for you? Some business types come with suggested business structures. For instance, many small business lawyers recommend you create an LLC in NJ for an e-commerce business. Why? With e-commerce businesses, products fall under product liability statutes. This means that anyone involved in the sale and distribution of the product could be held liable—even if the problem lies with the manufacturer. An LLC provides you with limited liability in case you are sued by creating a separate and distinct legal entity and isolating business assets from your assets. Therefore, compensation can only be taken from the LLC’s assets, not your personal assets.

Why is an LLC a good idea for an e-commerce Business?

If there is an issue with a product, an LLC protects you. Compensation can only be taken from the LLC’s assets, not your personal assets.

Start Your LLC Now
transporter

Besides protecting you and your assets, creating an LLC provides a business owner with more options for federal tax purposes.

  • For instance, if an LLC has only one owner, it’s referred to as a single-member LLC or SMLLC.. Owners have the option of being taxed as a Sole Proprietorship, an S Corporation, or a C Corporation.
  • If an LLC has more than one owner, it’s categorized as a multiple-member LLC. Owners have the option of being taxed as a Partnership, an S Corporation, or a C Corporation.

An advantage to having an NJ LLC with multiple members is that the members decide how to report profits and losses for tax purposes and have several options as to how they prefer to be taxed.

For federal tax purposes, if you’re the sole member of an LLC, your business is treated as a disregarded entity. This means that although you and your business are separate entities, the SMLLC’s income and expenses are reported on the owner’s personal tax return rather than an SMLLC tax return, and the IRS ignores the SMLLC’s status as a business entity. However, for purposes of employment tax and certain excise taxes, an SMLLC is still considered a separate entity. The way a sole proprietorship is taxed is the IRS’ default option for a single member LLC in New Jersey.

In contrast, a corporation only has two choices: S corporation or C corporation.. A business operated as a sole proprietorship or a partnership also doesn’t have an option as to how it will be taxed.

For those wanting to open an LLC in NJ, the best part is the fact that it combines the liability protection of a C Corporation with the tax treatment of any of the above business entities. Plus, it is easier to set up than a corporation.

But New Jersey LLCs have a few disadvantages. If LLC owners do not choose to file for a tax status as a corporation, individual members pay high self-employment taxes. Also, if business owners decide they may want to take the company public and sell stock, a New Jersey LLC does not permit this (unless you file as an S corp in New Jersey). Despite these disadvantages, creating an LLC for your startup business is usually recommended. It is well worth it to protect your personal assets and simplify the process of forming an LLC in NJ.

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Learn the Benefits of an LLC

For most folks looking to start a business in New Jersey, the best type of company to form is what's known as a Limited Liability Company (LLC). An LLC can:

  • Run a business
  • Hold assets (such as office equipment/real estate)
  • Open a bank account
  • Enter into contracts

Assign Member Roles

Now it’s the time to decide whether you will run this business on your own or with another member’s or organization’s assistance, how small or large you intend for your team to be, and which duties each member will have.

There are two types of LLC management structures:
  • Member-managed LLC - Member-managed LLC - These may consist of single or multiple members. Each member plays an active role in the management and operation of the business and has the authority to make decisions to bind the LLC. This is ideal if the business is small, has limited resources, and all members have management skills.
  • Manager-managed LLC - These may consist of single or multiple members, but members must relinquish the authority to the manager and cannot interfere with the manager's operational decisions. This is ideal if your business is too large or complex to efficiently allow the sharing of management duties among all members, or if some of your members do not have management skills.

Member-managed LLC

All members can make authoritative decisions.

Works best when:

  • business is small
  • has limited resources
  • all members are skilled
manager
manager

Member-managed LLC

Only the manager can make authoritative decisions.

Works best when:

  • business is too large/complex
  • not all members are skilled

If you know your LLC will have employees, you also know that you will have to pay them. Plus, you will need to figure out the amount you should deduct from their wages for tax purposes. Employees will need to fill out a W-4 Form, and you will need to give them pay stubs with their tax information. Before this all gets overwhelming, keep in mind that we offer Payroll, Tax and HR compliance solutions with our partner, ADP.. We make it easy to pay your employees, track time, and file taxes effortlessly. Plus, you and your employees can view and update payroll information via an app--accessible anywhere, anytime, backed by 24/7 live customer service support.

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Assign Member Roles

Now it’s the time to decide whether you will run this business on your own or with another member’s or organization’s assistance, how small or large you intend for your team to be, and which duties each member will have.

Decide on a Registered Agent

Next, figure out who the Registered Agent for the LLC should be. The State of New Jersey requires every LLC in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately. The Registered Agent will also act as the contact point between the New Jersey Department of State and the LLC. Once you assign someone as your Registered Agent, they can receive official correspondence and documents on behalf of your business.

A Registered Agent can be either an individual who is a resident of New Jersey or a business entity that is authorized to conduct business in the state (but not your own business). This can be you or someone else within your company, but keep in mind that this person will be through whom the state has contact with your business. This agent will receive legal documents (known as “Service of Process”) that pertain to your business. You are legally required to have one.

Generally speaking, a Registered Agent in New Jersey for an LLC must meet the following requirements:
  • Possess a physical street address located in New Jersey (no P.O. Box address).
  • Be available during regular business hours, typically Monday through Friday, 9 am to 5 pm.

Although the most comfortable option for a Registered Agent would be to name yourself, a friend, or a family member, know that this information will be public record. Not only will the information be searchable on the state’s LLC website, it can also be republished on other sites as well. If you work from home and would much rather keep your home address private, this might not be the best choice. An alternative you can look into is hiring a New Jersey Registered Agent LLC Service. We also offer a Registered Agent Service for a small charge that you can include as an add-on to your shopping cart.

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Decide on a Registered Agent

Next, figure out who the Registered Agent for the LLC should be. The State of New Jersey requires every LLC in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately.

Obtain Your Certificate of
Formation and Register Your LLC

As you get ready to apply for an LLC in NJ you will need to form your NJ LLC and register the LLC in NJ. Most US states require you to submit a form called the Articles of Organization in order to form an LLC. But an LLC application in NJ requires an entirely different process, and it's because it requires both--a formation and registration process. First, you form your LLC with the Division of Revenue and Enterprise Services. This is done by filing a form called "Public Records Filing for New Business Entity" and paying a fee. Once the first step is completed, you will receive a Certificate of Formation, which is also your Public Record Filing in New Jersey. Afterwards, you undergo the process of your NJ LLC registration. This is done by filing a “Business Registration Application” with the New Jersey Division of Taxation. Both of these NJ LLC formation documents are necessary to successfully.

When establishing an LLC in NJ, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of New Jersey LLC forms, and long wait times whether in person or by mail--especially if you plan to create an NJ LLC online during peak season. GovDocFiling can speed up the process of filing your LLC application in NJ for you. We offer an easy online application, expedited pricing, and a free business start-up guide and resources with all filings. You can apply here today.

Once you have a New Jersey LLC Certificate of Formation form and your LLC is registered with the Division of Taxation, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of New Jersey.

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Obtain Your Certificate of Formation and Register Your LLC

As you get ready to apply for an LLC in NJ you will need to form your NJ LLC and register the LLC in NJ. Most US states require you to submit a form called the Articles of Organization in order to form an LLC.

Obtain an Employer
Identification Number

One of the New Jersey LLC tax filing requirements is getting an EIN. Your LLC will need to file with the IRS for an Employer Identification Number (EIN), which is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. (Note: you do not need an SSN to apply for an EIN, so international applicants are welcome.) Corporations, partnerships, and LLCs require an EIN, while sole proprietors do not. Instead, sole proprietors can use their Social Security Number, but that is not recommended as that exposes you to potential identity theft/fraud. In any case, it is a good idea to obtain one in case the company grows or for banking purposes.

Fortunately, you do not have to waste time dealing with the IRS on your own. Going through the IRS directly to get your EIN can be complicated, confusing, and frustrating. GovDocFiling alleviates the angst and aggravation of New Jersey business filing with the government, including applying for an EIN, or Tax ID number. Plus, GovDocFiling has one low price for same-day processing and delivery of your EIN (other Tax ID filing services charge more than $300 for same-day service!). Easily apply for your EIN/Tax ID online here. In addition, if you have any questions about obtaining an EIN, we offer 24/7 email and phone support to help you through the process. Emails are answered quickly at info@govdocfiling.com.

Once you designate how you prefer to be taxed, that decision must remain in effect for five years before being changed without approval from the IRS.

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Obtain an Employer Identification Number

One of the New Jersey LLC tax filing requirements is getting an EIN. Your LLC will need to file with the IRS for an Employer Identification Number (EIN), which is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer.

Fill Out an Operating
Agreement

Once you’ve decided on member roles within your LLC, it is time to create a business contract that holds members to their assigned responsibilities. An LLC Operating Agreement in New Jersey is a legal document that determines the financial and working relationships among business owners, members, and managers. Member duties would be explained and “what if” scenarios would be covered (such as what happens if a member leaves the LLC). If you do not have an Operating Agreement set up for your business, when something unforeseeable happens, it will be up to the state to decide how to proceed justly, and this may not be what you want.

While it is not a necessary part of a New Jersey LLC registration to have an Operating Agreement, it is still extremely important to have one in order to protect your business. You can have a lawyer look over your LLC Operating Agreement NJ form prior to submitting it. Get the legal advice you need to protect you and familiarize yourself with New Jersey LLC law with our partner, Rocket Lawyer. Your company is responsible for maintaining copies of the Operating Agreement.

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Fill Out an Operating Agreement

Once you’ve decided on member roles within your LLC, it is time to create a business contract that holds members to their assigned responsibilities. An LLC Operating Agreement in New Jersey is a legal document that determines the financial and working relationships among business owners, members, and managers.

Familiarize Yourself with the
State’s Taxes and Licenses

Income from pass-through entities, such as a New Jersey Limited Liability Company and New Jersey S corp, “pass through” the business to the owners, who are required to report this information on their personal tax returns. Each individual LLC member will then have to pay taxes on his or her share of the LLC’s income. The LLC itself does not pay federal income taxes, but some states do charge the LLC other various taxes. For example, employers owe payroll tax on their employees’ wages. Also, the State of Colorado has a sales and use tax that anyone with a business that sells products or services must pay. You can find more information on both of these taxes on the State of New Jersey Business Portal: Tax Center. Other taxes are listed here. In addition, if you have a New Jersey Multiple-member LLC, there is an “LLC Partner Tax” that your New Jersey LLC will be required to pay. The tax is $150 per LLC Member. There is no fee for an NJ Single-Member LLC. More information about this tax can be found on the State of New Jersey Department of the Treasury website.

Like most other states, New Jersey taxes corporation income, which will apply to you if your LLC is classified as a C corporation. In this case, New Jersey would treat the LLC as a corporation when it comes to taxes. Therefore, if your New Jersey LLC files taxes as a corporation, the company itself must file a separate tax return.

In addition, there may be extra fees for certain insurances, permits, and licenses, depending on the state’s laws and the type of business you own. For example, you may need worker’s compensation, unemployment insurance, building permits, etc. Most New Jersey licenses and permits can be found here. Find out the requirements for LLCs in the state you plan to run your business in. Keep in mind that different cities or counties may require certain permits and licenses that other regions do not. Contact your city or county to see if there are any insurances, permits, or licenses you might need to obtain before you begin operating your business.

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Familiarize Yourself with the State’s Taxes and Licenses

Income from pass-through entities, such as a New Jersey Limited Liability Company and New Jersey S corp, “pass through” the business to the owners, who are required to report this information on their personal tax returns.

File an Annual Report

Like most states, the State of New Jersey requires all LLC owners to file an Annual Report that updates all the information that the State of New Jersey has on file. The report is due by the end of the registration anniversary month. A $75 report fee is due with it, plus a $3 filing fee. New Jersey LLC online Annual Report filing is available on the State of New Jersey Division of Revenue and Enterprise Services: Annual Reports and Change Services website. Filing an Annual Report is necessary for maintaining an active status after starting an LLC in NJ. Not filing the report or paying the fee will result in being presented a New Jersey LLC dissolution form, after which the state will dissolve your business.

Annual Reports can be rather complex–requiring the deciphering of gross receipts, dividends, interest, losses, and all New Jersey LLC fees–and you should seek the help of an accountant to ensure that it is filled out properly. Our partner, Bench, will provide you with a team of accountants to help you with your franchise tax reports, as well as general bookkeeping services with monthly financial statements and intuitive software to monitor your business profits and expenses.

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File an Annual Report

Like most states, the State of New Jersey requires all LLC owners to file an Annual Report that updates all the information that the State of New Jersey has on file.

Raise Funds for Your LLC

You can’t start a business with zero capital. There are legal fees, the NJ LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC cost in NJ of operating a business. Now, raising funds for your LLC is entirely separate from the New Jersey online LLC application process. Some of the most commonly-used options for obtaining funding for your LLC are:

  • Personal savings and assets
  • Informal loans from family and friends
  • Peer-to-peer lending sites or crowdfunding
  • Conventional bank loan
  • Short-term credit card loans
  • Government-sponsored grants/loan programs
  • Adding LLC owners
saving_assets

Personal Saving/Assets

Use your own savings, liquidate your assets, refinance your home, borrow your Roth IRA, etc.

informal

Informal Loans From Family/Friends

Ask friends or family members if they would be willing to invest in your business.

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Peer-to-Peer Landing Sites

LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

convertional

Conventional Bank Loan

LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

Many new LLC owners begin with their savings to fund their new business venture. If your savings are not enough, you may need to look into liquidating your personal assets or use them as collateral for loans. Can you sell your property or refinance your home? Do you have a retirement account such as a Traditional or Roth IRA? Usually, you can withdraw contributions you made to your IRA anytime, tax- and penalty-free, but that is not always the case. Find out what kind of fees your particular retirement plan will hit you with before using your IRA to fund your business.

Next, look into whether you know someone who shares your passion for your business and has the ability to contribute financially to your dream. These personal connections may want to support your startup idea. Although accepting an informal loan from a close friend or relative may feel safe, you should still protect yourself in case your relationship with the friend or family member goes sour. Have an official contract drawn up that all parties agree to. You can choose to have it notarized and have witnesses present for extra protection.

If you prefer not to borrow from friends and family, you can turn to a peer-to-peer (P2P) or social lending website. A P2P site is a place where investors seek out alternative opportunities to invest outside of stocks and bonds. You can apply for a loan and investors can decide whether or not they wish to fund your proposed business through interest-based loans. You can also look into crowdfunding, which is a way for small businesses or startups to raise money online through donations. These options typically require the ability to promote your business well, ensure complete transparency of where the funds go, and sometimes, the possibility of giving up ownership of a piece of your business. Make sure you look into all of the specifics.

You might be hoping to rely on a conventional loan from a bank, credit union or other lending institution for your main source of funds. In this case, you would need a formal business plan to present during your loan application process. If approved, you would be required to sign a legal contract, or a Promissory Note, outlining your obligations to the lender (which would primarily entail regular payments until the loan is paid off). If you are a first-time business owner, it is likely that you may be rejected initially. In that case, you can improve your application and reapply, or look into alternative sources of funding such as short-term financing via credit cards.

Using a credit card as a means of obtaining a fast and easy business loan would grant you use of immediate funds without the hassle and paperwork of loan applications or business plans. This is the best option for a brand new business, and we work with Nav to give our customers access to the credit they need. Visit our financing page and fill out the form for more information.

There are many credit cards that have low or no annual fees, low introductory interest rates, and other rewards depending on your spending. But be careful: make sure you pay back your credit card before the promotional low interest rate expires and skyrockets, or prior to having to pay large annual fees. And don’t make large purchases that can take years to pay back. For example, getting an equipment loan to purchase a piece of equipment is smarter than putting it on a credit card. Credit cards can be a good temporary solution if your business plan will allow you to pay back the debt quickly.

Another option at your disposal is a government-sponsored grant or loan program. Traditional lenders can turn to federal, state, or local governments to finance their business if such a grant or program is available. Typically, these programs consider sponsoring specific type of businesses or certain business owners, so be sure to research what government-sponsored loan your particular business or you might be eligible for.

Lastly, you can invite new members to your team. If you could see your businesses strategy succeeding with a partner or multiple partners, pool together your financial resources with another member to support your startup. An advantage to this funding option is your partner(s) may come with their own social network of business contacts and possibly even their own potential investors. To protect yourself, you can adjust your Operating Agreement and ensure that you are still the primary owner of the LLC.

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Raise Funds for Your LLC

You can’t start a business with zero capital. There are legal fees, the NJ LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC cost in NJ of operating a business.

Create a Business Website

Creating a website for your business is not a requirement but it is recommended to any business owner operating in the modern world. An online presence is important to have and maintain in order to ensure that your customers trust your company and know they will receive good customer service. Having a website gives your business legitimacy; your customers will visit your website and see that you are a real company with an actual website where they can read about the company’s origin and products/services and access contact information. Being able to read up on a company on their website leads to trust between a consumer and an organization. Also, dependable customer service is often offered through a website. By offering an email address, a contact form, and/or live chat with a representative on your website, you are making it easy for a customer to get connected with someone knowledgeable about the product/service. That allows a customer to know that there is a real person who cares about their satisfaction within the company that they are doing business with.

Start LLC formation

If the website is outdated or there is no website, a consumer may feel that you are not a legitimate business but a scam with no licenses to back up your business’ operations. You can avoid losing customers due to not having a professional website by ensuring that you have one. We work with GoNorth Websites to provide new businesses with high quality, cost-effective websites. Find out more about our custom designed, written, and developed websites, plus optional internet marketing add-ons that help you grow your business.

But websites needs maintenance too. You can’t simply have one created and never update it throughout the years. Policies and terms change, companies grow, products/services improve, and all of that (and more) can be reflected on the website. This keeps your customers up-to-date and offers a personal touch that is valued by any consumer.

In addition, you can look into having a blog or utilizing social media as another means of keeping your customers in-the-know and offering them a way to interact with your company. An online and/or social media presence can also lead to responsive customers who can offer you feedback on how you’re doing—plus, it’ll help get your company’s name out there.

If this all sounds like more than you’d like to deal with on your own, know that you can hire someone to maintain your website and social media presence for you—just like you can hire customer representatives to handle all correspondence. You can employ a web agency to monitor your website and/or a social media marketing agency to manage your social media campaign. A social media campaign is a coordinated marketing plan that can assist you with your business goals, which translates into extra advertising for your new business. Marketing your company can help you have a more profitable business and can aid you with paying back your business loans quicker—something any business owner aims for. Regardless of industry, all businesses should consider having a website as part of the first steps of starting a business.

T The Benefits of Having an Online Presence
benefis_hand
You will show your customers that you are a legitimate business and build trust.
benefis_message
Your company will be easy to correspond with and you can provide good, responsive customer service.
benefis_calendar
Your customers will be kept up-to-date on all exciting news related to your business.

If you’ve decided that you want to have a website for your business, keep a few things in mind. When coming up with a website name, make sure that the domain contains your business name and is easy to type and remember for future visits. If you come up with a great web domain that you’d like to use for your business but you don’t plan to create a business website today, you may want to buy the URL to prevent others from acquiring it.

While brainstorming website URLs for your website, you’re going to either realize that you already know what your business is going to be named or that you have no idea what or how to name your business. Here are a few quick New Jersey LLC name tips:

  • Follow LLC naming guidelines. Make sure that the name of your business ends with the phrase “Limited Liability Company” or the abbreviation “LLC.” It’s also important not to use any words or phrases that will make it easy for someone to mistake your company for a federal agency; think “State Department.”
  • Find a unique name. If you’re getting an LLC in NJ you will need an original name that is not in use by another LLC. To check if a name has already been taken, you can search the Business Name Search Database. If you are not ready to file your New Jersey LLC today but want to reserve a name to ensure that it is not taken, you can file a Business Name Reservation Form along with a $50, which will reserve the business name for you for 120 days.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of New Jersey has a business with the same name. In that case, think of something more original.
liability
Decreased Liability
An LLC separates your personal assets from any business decisions made or actions undertaken by the LLC.
keeping
Reduced Record Keeping
When compared to a corporation structure, an LLC has less registration paperwork and startup expenses.
profit
Sharing of Profits
LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.
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Create a Business Website

Creating a website for your business is not a requirement but it is recommended to any business owner operating in the modern world.

Begin Operating Your Business

Once you complete your NJ LLC formation, make sure to keep your LLC compliant. To do so, keep track of all important dates, such as those for filing annual documents and license/permit renewals, and pay all necessary State of New Jersey LLC fees. If you’d rather not do these tasks yourself, you can sign up for a service that will automatically send you alerts ahead of crucial state and federal filing deadlines. Likewise, you can hire an accountant, a tax professional, and/or an attorney to ensure you are not making errors when keeping records, filling out paperwork, and making payments.

You can begin operating your business in New Jersey with peace of mind, knowing that you are protected by an LLC in case anything unforeseeable affects your new business venture.

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Begin Operating Your Business

Once you complete your NJ LLC formation, make sure to keep your LLC compliant. To do so, keep track of all important dates, such as those for filing annual documents and license/permit renewals, and pay all necessary State of New Jersey LLC fees.


New Hampshire - LLC

Learn the Benefits of an LLC

There are many benefits to setting up your business as an LLC. LLCs not only have more tax options, but they also offer decreased liability, reduced record keeping, and sharing of profits. They are simpler to set up and maintain, with much simpler rules and regulations. There is decidedly less registration paperwork and lower-costing startup expenses.

gistogram
Decreased Liability
An LLC separates your personal assets from any business decisions made or actions undertaken by the LLC
doc
Reduced Record Keeping
When compared to a corporation structure, an LLC has less registration paperwork and startup expenses
profit
Sharing of Profits
LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

But is an LLC the right business structure for you? Some business types come with suggested business structures. For instance, many small business lawyers recommend you create an LLC for an e-commerce business. Why? With e-commerce businesses, products fall under product liability statutes. This means that anyone involved in the sale and distribution of the product could be held liable—even if the problem lies with the manufacturer. An LLC provides you with limited liability in case you are sued by creating a separate and distinct legal entity and isolating business assets from your assets. Therefore, compensation can only be taken from the LLC’s assets, not your personal assets.

Why is an LLC a good idea for an e-commerce Business?

If there is an issue with a product, an LLC protects you. Compensation can only be taken from the LLC’s assets, not your personal assets.

Start Your LLC Now
transporter

Besides protecting you and your assets, creating an LLC provides a business owner with more options for federal tax purposes.

  • For instance, if an LLC has only one owner, it’s referred to as a single-member LLC or SMLLC.. Owners have the option of being taxed as a Sole Proprietorship, an S Corporation, or a C Corporation.
  • If an LLC has more than one owner, it’s categorized as a multiple-member LLC. Owners have the option of being taxed as a Partnership, an S Corporation, or a C Corporation.

An advantage to having an NH LLC with multiple members is that the members decide how to report profits and losses for tax purposes and have several options as to how they prefer to be taxed.

For federal tax purposes, if you’re the sole member of an LLC, your business is treated as a disregarded entity. This means that although you and your business are separate entities, the SMLLC’s income and expenses are reported on the owner’s personal tax return rather than an SMLLC tax return, and the IRS ignores the SMLLC’s status as a business entity. However, for purposes of employment tax and certain excise taxes, an SMLLC is still considered a separate entity. The way a sole proprietorship is taxed is the IRS’ default option for an SMLLC.

In contrast, a corporation only has two choices: S corporation or C corporation.. A business operated as a sole proprietorship or a partnership also doesn’t have an option as to how it will be taxed.

The best part of getting an LLC in New Hampshire is the fact that it combines the liability protection of a C Corporation with the tax treatment of any of the above business entities. Plus, it is easier to set up than a corporation.

But New Hampshire LLCs have a few disadvantages. If LLC owners do not choose to file for a tax status as a corporation, individual members pay high self-employment taxes. Those taxes often are higher than corporate taxes. Also, if business owners decide they may want to take the company public and sell stock, an LLC does not permit this (unless you file as an S corporation). Despite these disadvantages, creating an LLC for your startup business is usually recommended. It is well worth it to protect your personal assets and simplify the process of forming an LLC in NH.

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Learn the Benefits of an LLC

For most folks looking to start a business in New Hampshire, the best type of company to form is what's known as a Limited Liability Company (LLC). An LLC can:

  • Run a business
  • Hold assets (such as office equipment/real estate)
  • Open a bank account
  • Enter into contracts

Assign Member Roles

Now it’s the time to decide whether you will run this business on your own or with another member’s or organization’s assistance, how small or large you intend for your team to be, and which duties each member will have.

There are two types of LLC management structures:
  • Member-managed LLC - Member-managed LLC - These may consist of single or multiple members. Each member plays an active role in the management and operation of the business and has the authority to make decisions to bind the LLC. This is ideal if the business is small, has limited resources, and all members have management skills.
  • Manager-managed LLC - These may consist of single or multiple members, but members must relinquish the authority to the manager and cannot interfere with the manager's operational decisions. This is ideal if your business is too large or complex to efficiently allow the sharing of management duties among all members, or if some of your members do not have management skills.

Member-managed LLC

All members can make authoritative decisions.

Works best when:

  • business is small
  • has limited resources
  • all members are skilled
manager
manager

Member-managed LLC

Only the manager can make authoritative decisions.

Works best when:

  • business is too large/complex
  • not all members are skilled

If you know your LLC will have employees, you also know that you will have to pay them. Plus, you will need to figure out the amount you should deduct from their wages for tax purposes. Employees will need to fill out a W-4 Form, and you will need to give them pay stubs with their tax information. Before this all gets overwhelming, keep in mind that we offer Payroll, Tax and HR compliance solutions with our partner, ADP.. We make it easy to pay your employees, track time, and file taxes effortlessly. Plus, you and your employees can view and update payroll information via an app--accessible anywhere, anytime, backed by 24/7 live customer service support.

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Assign Member Roles

Now it’s the time to decide whether you will run this business on your own or with another member’s or organization’s assistance, how small or large you intend for your team to be, and which duties each member will have.

Decide on a Registered Agent

Next, figure out who the Registered Agent for the LLC should be. The State of New Hampshire requires every LLC in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately. The Registered Agent will also act as the contact point between your LLC and the Secretary of State’s office. Once you assign someone as your Registered Agent, they can receive official correspondence and documents on behalf of your business.

A Registered Agent can be either an individual who is a resident of New Hampshire or a business entity that is authorized to conduct business in the state (but not your own business). This can be you or someone else within your company, but keep in mind that this person will be through whom the state has contact with your business. This agent will receive legal documents (known as “Service of Process”) that pertain to your business. You are legally required to have one.

Generally speaking, a Registered Agent must meet the following requirements:
  • Possess a physical street address located in New Hampshire (no P.O. Box address).
  • Be available during regular business hours, typically Monday through Friday, 9 am to 5 pm.

Although the most comfortable option for a Registered Agent would be to name yourself, a friend, or a family member, know that this information will be public record. Not only will the information be searchable on the state’s LLC website, it can also be republished on other sites as well. If you work from home and would much rather keep your home address private, this might not be the best choice. An alternative you can look into is hiring a New Hampshire Registered Agent Service. We also offer a Registered Agent Service for a small charge that you can include as an add-on to your shopping cart.

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Decide on a Registered Agent

Next, figure out who the Registered Agent for the LLC should be. The State of New Hampshire requires every LLC in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately.

Submit Your Certificate
of Formation

To create an LLC in New Hampshire, you will also need to register your business by filing the Certificate of Formation form with the New Hampshire Corporation Division. This form includes information such as the LLC's name and address, the registered agent’s information, whether the LLC is run by managers or members, etc. If you also have an Operating Agreement written out, you would include a copy of it with the Certificate of Formation while submitting it. An addendum called Form SRA will also need to be filed with the Certificate, which is a statement that you've complied with New Hampshire securities laws.

Submitting your Certificate of Formation for your NH LLC is a requirement. If filing on your own, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of forms, and long wait times whether in person or by mail--especially if you’re filing for an LLC during peak season. GovDocFiling can speed up the process for you. We offer an easy online application, expedited pricing, and a free business start-up guide and resources with all filings. You can apply here today.

Once your completed New Hampshire LLC Certificate of Formation form is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of New Hampshire.

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Submit Your Certificate of Formation

To create an LLC in New Hampshire, you will also need to register your business by filing the Certificate of Formation form with the New Hampshire Corporation Division.

Obtain an Employer
Identification Number

Next, your LLC will need to file with the IRS for an Employer Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. (Note: you do not need an SSN to apply for an EIN, so international applicants are welcome.) Corporations, partnerships, and LLCs require an EIN, while sole proprietors do not. Instead, sole proprietors can use their Social Security Number, but that is not recommended as that exposes you to potential identity theft/fraud. In any case, it is a good idea to obtain one in case the company grows or for banking purposes.

Fortunately, you do not have to waste time dealing with the IRS on your own. Going through the IRS directly to get your EIN can be complicated, confusing, and frustrating. GovDocFiling alleviates the angst and aggravation of filing government documents, including applying for an EIN, or Tax ID number. Plus, GovDocFiling has one low price for same-day processing and delivery of your EIN (other Tax ID filing services charge more than $300 for same-day service!). Easily apply for your EIN/Tax ID online here. In addition, if you have any questions about obtaining an EIN, we offer 24/7 email and phone support to help you through the process. Emails are answered quickly at info@govdocfiling.com.

Once you designate how you prefer to be taxed, that decision must remain in effect for five years before being changed without approval from the IRS.

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Obtain an Employer Identification Number

Next, your LLC will need to file with the IRS for an Employer Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer.

Fill Out an Operating
Agreement

Once you’ve decided on member roles within your LLC, it is time to create a business contract that holds members to their assigned responsibilities. An LLC Operating Agreement in New Hampshire is a legal document that determines the financial and working relationships among business owners, members, and managers. Member duties would be explained and “what if” scenarios would be covered (such as what happens if a member leaves the LLC). If you do not have an Operating Agreement set up for your business, when something unforeseeable happens, it will be up to the state to decide how to proceed justly, and this may not be what you want.

While it is not a legal requirement to have an Operating Agreement for a New Hampshire LLC, it is still extremely important to have one in order to protect your business. You can have a lawyer look over your Operating Agreement prior to submitting it. Get the legal advice you need to protect yourself with our partner, Rocket Lawyer. Your company is responsible for maintaining copies of the New Hampshire LLC Operating Agreement.

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Fill Out an Operating Agreement

Once you’ve decided on member roles within your LLC, it is time to create a business contract that holds members to their assigned responsibilities. An LLC Operating Agreement in New Hampshire is a legal document that determines the financial and working relationships among business owners, members, and managers.

Familiarize Yourself with the
State’s Taxes and Licenses

Typically, income from pass-through entities such as limited liability companies (LLCs) and S corporations “pass through” the business to the owners, who are required to report this information on their personal tax returns. Each individual LLC member would then have to pay taxes on his or her share of the LLC’s income. The LLC itself, in that case, does not pay federal income taxes, but some states do charge the LLC other various taxes. New Hampshire, however, does not treat LLCs as “pass-through” entities, and instead requires LLCs to pay a variety of other taxes. In NH, each individual member does not owe state tax on the portion of the company’s net income that he or she receives.

It is possible to have the IRS treat your LLC as a corporation, in which case the LLC would be subject to federal corporate income tax. Keep in mind that this change in classification would not affect the LLC’s New Hampshire tax obligations. The state of New Hampshire has two types of taxes for LLCs--a business profits tax (BPT), which is a tax on business income, and a business enterprise tax (BET), which is a tax on a business’s enterprise value tax base. The Department of Revenue Administration explains the BPT and BET on their website.

When it comes to personal income, New Hampshire only taxes interest and dividend income. This means that, while your New Hampshire business can be subject to two different types of state tax, remaining income after taxes will not be subject to further taxation on your personal state tax return. Additional tax info can be found here.

Good news for new business owners in New Hampshire--the state does not have a sales tax. But there are various other taxes that you may need to pay. You can review what those are on the New Hampshire Department of Revenue website.

In addition, there may be extra fees for certain insurances, permits, and licenses. For example, you may need worker’s compensation insurance or a building permit, depending on the state’s laws and the type of business you own. Most New Hampshire permits and licenses can be found on the New Hampshire Government website. Find out the requirements for LLCs in the state you plan to run your business in. Different cities or counties may require certain permits and licenses that other regions do not. Contact your city or county to see if there are any insurances, permits, or licenses you might need to obtain before you begin operating your business.

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Familiarize Yourself with the State’s Taxes and Licenses

Typically, income from pass-through entities such as limited liability companies (LLCs) and S corporations “pass through” the business to the owners, who are required to report this information on their personal tax returns.

File an Annual Report

Like most states, the State of New Hampshire requires all LLC owners to file an Annual Report. It is due by April 1, payable to the New Hampshire Secretary of State Corporation Division with a fee of $100. The report may be filed by mail or online on the New Hampshire Secretary of State’s website. Filing this form is necessary for maintaining an active business status.

The report can be rather complex–requiring the deciphering of gross receipts, dividends, interest, losses etc.–and you should seek the help of an accountant to ensure that it is filled out properly. Our partner, Bench, will provide you with a team of accountants to help you with your franchise tax reports, as well as general bookkeeping services with monthly financial statements and intuitive software to monitor your business profits and expenses.

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File an Annual Report

Like most states, the State of New Hampshire requires all LLC owners to file an Annual Report. It is due by April 1, payable to the New Hampshire Secretary of State Corporation Division with a fee of $100.

Raise Funds for Your LLC

You can’t start a business with zero capital. There are legal fees, document filing fees, taxes, employees to pay if you are not an SMLLC, as well as the costs of operating a business. Some of the most commonly-used options for obtaining funding for your LLC are:

  • Personal savings and assets
  • Informal loans from family and friends
  • Peer-to-peer lending sites or crowdfunding
  • Conventional bank loan
  • Short-term credit card loans
  • Government-sponsored grants/loan programs
  • Adding LLC owners
saving_assets

Personal Saving/Assets

Use your own savings, liquidate your assets, refinance your home, borrow your Roth IRA, etc.

informal

Informal Loans From Family/Friends

Ask friends or family members if they would be willing to invest in your business.

pear_to_pear

Peer-to-Peer Landing Sites

LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

convertional

Conventional Bank Loan

LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

Many new LLC owners begin with their savings to fund their new business venture. If your savings are not enough, you may need to look into liquidating your personal assets or use them as collateral for loans. Can you sell your property or refinance your home? Do you have a retirement account such as a Traditional or Roth IRA? Usually, you can withdraw contributions you made to your IRA anytime, tax- and penalty-free, but that is not always the case. Find out what kind of fees your particular retirement plan will hit you with before using your IRA to fund your business.

Next, look into whether you know someone who shares your passion for your business and has the ability to contribute financially to your dream. These personal connections may want to support your startup idea. Although accepting an informal loan from a close friend or relative may feel safe, you should still protect yourself in case your relationship with the friend or family member goes sour. Have an official contract drawn up that all parties agree to. You can choose to have it notarized and have witnesses present for extra protection.

If you prefer not to borrow from friends and family, you can turn to a peer-to-peer (P2P) or social lending website. A P2P site is a place where investors seek out alternative opportunities to invest outside of stocks and bonds. You can apply for a loan and investors can decide whether or not they wish to fund your proposed business through interest-based loans. You can also look into crowdfunding, which is a way for small businesses or startups to raise money online through donations. These options typically require the ability to promote your business well, ensure complete transparency of where the funds go, and sometimes, the possibility of giving up ownership of a piece of your business. Make sure you look into all of the specifics.

You might be hoping to rely on a conventional loan from a bank, credit union or other lending institution for your main source of funds. In this case, you would need a formal business plan to present during your loan application process. If approved, you would be required to sign a legal contract, or a Promissory Note, outlining your obligations to the lender (which would primarily entail regular payments until the loan is paid off). If you are a first-time business owner, it is likely that you may be rejected initially. In that case, you can improve your application and reapply, or look into alternative sources of funding such as short-term financing via credit cards.

Using a credit card as a means of obtaining a fast and easy business loan would grant you use of immediate funds without the hassle and paperwork of loan applications or business plans. This is the best option for a brand new business, and we work with Nav to give our customers access to the credit they need. Visit our financing page and fill out the form for more information.

There are many credit cards that have low or no annual fees, low introductory interest rates, and other rewards depending on your spending. But be careful: make sure you pay back your credit card before the promotional low interest rate expires and skyrockets, or prior to having to pay large annual fees. And don’t make large purchases that can take years to pay back. For example, getting an equipment loan to purchase a piece of equipment is smarter than putting it on a credit card. Credit cards can be a good temporary solution if your business plan will allow you to pay back the debt quickly.

Another option at your disposal is a government-sponsored grant or loan program. Traditional lenders can turn to federal, state, or local governments to finance their business if such a grant or program is available. Typically, these programs consider sponsoring specific type of businesses or certain business owners, so be sure to research what government-sponsored loan your particular business or you might be eligible for.

Lastly, you can invite new members to your team. If you could see your businesses strategy succeeding with a partner or multiple partners, pool together your financial resources with another member to support your startup. An advantage to this funding option is your partner(s) may come with their own social network of business contacts and possibly even their own potential investors. To protect yourself, you can adjust your Operating Agreement and ensure that you are still the primary owner of the LLC.

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Raise Funds for Your LLC

You can’t start a business with zero capital. There are legal fees, document filing fees, taxes, employees to pay if you are not an SMLLC, as well as the costs of operating a business.

Create a Business Website

Creating a website for your business is not a requirement but it is recommended to any business owner operating in the modern world. An online presence is important to have and maintain in order to ensure that your customers trust your company and know they will receive good customer service. Having a website gives your business legitimacy; your customers will visit your website and see that you are a real company with an actual website where they can read about the company’s origin and products/services and access contact information. Being able to read up on a company on their website leads to trust between a consumer and an organization. Also, dependable customer service is often offered through a website. By offering an email address, a contact form, and/or live chat with a representative on your website, you are making it easy for a customer to get connected with someone knowledgeable about the product/service. That allows a customer to know that there is a real person who cares about their satisfaction within the company that they are doing business with.

Start LLC formation

If the website is outdated or there is no website, a consumer may feel that you are not a legitimate business but a scam with no licenses to back up your business’ operations. You can avoid losing customers due to not having a professional website by ensuring that you have one. We work with GoNorth Websites to provide new businesses with high quality, cost-effective websites. Find out more about our custom designed, written, and developed websites, plus optional internet marketing add-ons that help you grow your business.

But websites needs maintenance too. You can’t simply have one created and never update it throughout the years. Policies and terms change, companies grow, products/services improve, and all of that (and more) can be reflected on the website. This keeps your customers up-to-date and offers a personal touch that is valued by any consumer.

In addition, you can look into having a blog or utilizing social media as another means of keeping your customers in-the-know and offering them a way to interact with your company. An NH LLC online and/or social media presence can also lead to responsive customers who can offer you feedback on how you’re doing—plus, it’ll help get your company’s name out there.

If this all sounds like more than you’d like to deal with on your own, know that you can hire someone to maintain your website and social media presence for you—just like you can hire customer representatives to handle all correspondence. You can employ a web agency to monitor your website and/or a social media marketing agency to manage your social media campaign. A social media campaign is a coordinated marketing plan that can assist you with your business goals, which translates into extra advertising for your new business. Marketing your company can help you have a more profitable business and can aid you with paying back your business loans quicker—something any business owner aims for. Regardless of industry, all businesses should consider having a website as part of the first steps of starting a business.

T The Benefits of Having an Online Presence
benefis_hand
You will show your customers that you are a legitimate business and build trust.
benefis_message
Your company will be easy to correspond with and you can provide good, responsive customer service.
benefis_calendar
Your customers will be kept up-to-date on all exciting news related to your business.

If you’ve decided that you want to have a website for your business, keep a few things in mind. When coming up with a website name, make sure that the domain contains your business name and is easy to type and remember for future visits. If you come up with a great web domain that you’d like to use for your business but you don’t plan to create a business website today, you may want to buy the URL to prevent others from acquiring it.

While brainstorming website URLs for your website, you’re going to either realize that you already know what your business is going to be named or that you have no idea what or how to name your business. Here are a few quick tips:

  • Follow LLC naming guidelines. Make sure that the name of your business ends with the phrase “Limited Liability Company” or the abbreviation “LLC.” It’s also important not to use any words or phrases that will make it easy for someone to mistake your company for a federal agency; think “State Department.”
  • Find a unique name. If you’re creating an LLC in the State of New Hampshire, you will need an original name that is not in use by another LLC. To check if a name has already been taken, you can search the New Hampshire Name Availability Database. You may reserve a name for 120 days by filing an Application for Reservation of Name with the New Hampshire Secretary of State. The application must be filed by mail. The filing fee is $15.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of New Hampshire has a business with the same name. In that case, think of something more original.
liability
Decreased Liability
An LLC separates your personal assets from any business decisions made or actions undertaken by the LLC.
keeping
Reduced Record Keeping
When compared to a corporation structure, an LLC has less registration paperwork and startup expenses.
profit
Sharing of Profits
LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.
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Create a Business Website

Creating a website for your business is not a requirement but it is recommended to any business owner operating in the modern world.

Begin Operating Your Business

Once you have finished setting up an LLC in NH, make sure you keep your state of NH LLC compliant. Remember all important dates and make all necessary payments on time. If you’d rather not do these tasks yourself, you can sign up for a service that will automatically send you alerts ahead of crucial state and federal filing deadlines. Likewise, you can hire an accountant, a tax professional, and/or an attorney to ensure you are not making errors when keeping records, filling out paperwork, and making payments.

You can begin operating your business in New Hampshire with peace of mind, knowing that you are protected by an LLC in case anything unforeseeable affects your new business venture.

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Begin Operating Your Business

Once you have finished setting up an LLC in NH, make sure you keep your state of NH LLC compliant. Remember all important dates and make all necessary payments on time.


Nevada - LLC

Learn the Benefits of an LLC

There are many benefits to setting up your business as an LLC. LLCs not only have more tax options, but they also offer decreased liability, reduced record keeping, and sharing of profits. They are simpler to set up and maintain, with much simpler rules and regulations. There is decidedly less registration paperwork and lower-costing startup expenses.

gistogram
Decreased Liability
An LLC separates your personal assets from any business decisions made or actions undertaken by the LLC
doc
Reduced Record Keeping
When compared to a corporation structure, an LLC has less registration paperwork and startup expenses
profit
Sharing of Profits
LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

But is an LLC the right business structure for you? Some business types come with suggested business structures. For instance, many small business lawyers recommend you create an LLC for an e-commerce business. Why? With e-commerce businesses, products fall under product liability statutes. This means that anyone involved in the sale and distribution of the product could be held liable—even if the problem lies with the manufacturer. An LLC provides you with limited liability in case you are sued by creating a separate and distinct legal entity and isolating business assets from your assets. Therefore, compensation can only be taken from the LLC’s assets, not your personal assets.

Why is an LLC a good idea for an e-commerce Business?

If there is an issue with a product, an LLC protects you. Compensation can only be taken from the LLC’s assets, not your personal assets.

Start Your LLC Now
transporter

Besides protecting you and your assets, creating an LLC provides a business owner with more options for federal tax purposes.

  • For instance, if an LLC has only one owner, it’s referred to as a single-member LLC or SMLLC.. Owners have the option of being taxed as a Sole Proprietorship, an S Corporation, or a C Corporation.
  • If an LLC has more than one owner, it’s categorized as a multiple-member LLC. Owners have the option of being taxed as a Partnership, an S Corporation, or a C Corporation.

All LLC members will need to pay federal and Nevada income tax plus federal self-employment tax on their share of the profits. Self-employment tax covers the Medicare and Social Security contributions that are not withheld from their paycheck. An advantage to having a NV LLC with multiple members is that the members decide how to report profits and losses for tax purposes and have several options as to how they prefer to be taxed (for example, an S or C corp or a partnership).

For federal tax purposes, if you’re the sole member of an LLC, your business is treated as a disregarded entity. This means that although you and your business are separate entities, the SMLLC’s income and expenses are reported on the owner’s personal tax return rather than an SMLLC tax return, and the IRS ignores the SMLLC’s status as a business entity. However, for purposes of employment tax and certain excise taxes, an SMLLC is still considered a separate entity.

In contrast, a corporation only has two choices: S corporation or C corporation.. A business operated as a sole proprietorship or a partnership also doesn’t have an option as to how it will be taxed.

The best part of getting an LLC in Nevada is the fact that it combines the liability protection of a C Corporation with the tax treatment of any of the above business entities. Plus, it is easier to set up than a corporation.

But Nevada LLCs have a few disadvantages. If LLC owners do not choose to file for a tax status as a corporation, individual members pay high self-employment taxes. Those taxes often are higher than corporate taxes. Also, if business owners contemplate taking the company public and selling stock, an LLC does not permit this (unless you file as an S corporation). Despite these disadvantages, creating an LLC for your startup business is usually recommended. It is well worth it to protect your personal assets and simplify the process of starting a business.

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Learn the Benefits of an LLC

For most folks looking to start a business in Nevada, the best type of company to form is what's known as a Limited Liability Company (LLC). An LLC can:

  • Run a business
  • Hold assets (such as office equipment/real estate)
  • Open a bank account
  • Enter into contracts

Assign Member Roles

Now it’s the time to decide whether you will run this business on your own or with another member’s or organization’s assistance, how small or large you intend for your team to be, and which duties each member will have.

There are two types of LLC management structures:
  • Member-managed LLC - Member-managed LLC - These may consist of single or multiple members. Each member plays an active role in the management and operation of the business and has the authority to make decisions to bind the LLC. This is ideal if the business is small, has limited resources, and all members have management skills.
  • Manager-managed LLC - These may consist of single or multiple members, but members must relinquish the authority to the manager and cannot interfere with the manager's operational decisions. This is ideal if your business is too large or complex to efficiently allow the sharing of management duties among all members, or if some of your members do not have management skills.

Member-managed LLC

All members can make authoritative decisions.

Works best when:

  • business is small
  • has limited resources
  • all members are skilled
manager
manager

Member-managed LLC

Only the manager can make authoritative decisions.

Works best when:

  • business is too large/complex
  • not all members are skilled

If you know your LLC will have employees, you also know that you will have to pay them. Plus, you will need to figure out the amount you should deduct from their wages for tax purposes. Employees will need to fill out a W-4 Form, and you will need to give them pay stubs with their tax information. Before this all gets overwhelming, keep in mind that we offer Payroll, Tax and HR compliance solutions with our partner, ADP.. We make it easy to pay your employees, track time, and file taxes effortlessly. Plus, you and your employees can view and update payroll information via an app--accessible anywhere, anytime, backed by 24/7 live customer service support.

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Assign Member Roles

Now it’s the time to decide whether you will run this business on your own or with another member’s or organization’s assistance, how small or large you intend for your team to be, and which duties each member will have.

Decide on a Registered Agent

Next, figure out who the Registered Agent for the LLC should be. The Nevada Secretary of State requires every LLC in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately. The Registered Agent will also act as the contact point between your LLC and the Secretary of State’s office. Once you assign someone as your Registered Agent, they can receive official correspondence and documents on behalf of your business.

A registered agent can be either an individual who is a resident of Nevada or a business entity that is authorized to conduct business in the state (but not your own business). This can be you or someone else within your company, but keep in mind that this person will be through whom the state has contact with your business. This agent will receive legal documents (known as “Service of Process”) that pertain to your business. You are legally required to have one.

Generally speaking, a Registered Agent must meet the following requirements:
  • Possess a physical street address located in Nevada (no P.O. Box address).
  • Be available during regular business hours, typically Monday through Friday, 9 am to 5 pm.

Although the most comfortable option for a Registered Agent would be to name yourself, a friend, or a family member, know that this information will be public record. Not only will the information be searchable on the state’s LLC website, it can also be republished on other sites as well. If you work from home and would much rather keep your home address private, this might not be the best choice. An alternative you can look into is hiring a Nevada Registered Agent Service, also known as a Commercial Registered Agent. We also offer a Registered Agent Service for a small charge that you can include as an add-on to your shopping cart.

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Decide on a Registered Agent

Next, figure out who the Registered Agent for the LLC should be. The Nevada Secretary of State requires every LLC in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately.

Submit Your Articles
of Organization

To create an LLC in Nevada, you will also need to register your business by filing the Articles of Organization form with the Nevada Secretary of State. This form includes information such as the LLC's name and address, the registered agent’s information, whether the LLC is run by managers or members, etc. If you also have an Operating Agreement written out, you would include a copy of it with the Articles of Organization while submitting it.

Submitting your Articles of Organization is a requirement. Failure to register will result in monetary penalties as well as other legal issues. In addition, anyone owing money to the business will not be obligated to pay.

If filing on your own, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of forms, and long wait times whether in person or by mail--especially if you’re filing for an LLC during peak season. GovDocFiling can speed up the process for you. We offer an easy online application, expedited pricing, and a free business start-up guide and resources with all filings. You can apply here today.

Once your completed Articles of Organization are accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of Nevada.

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Submit Your Articles of Organization

To create an LLC in Nevada, you will also need to register your business by filing the Articles of Organization form with the Nevada Secretary of State.

Obtain an Employer
Identification Number

Your LLC will need to file with the IRS for an Employee Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. (Note: you do not need an SSN to apply for an EIN, so international applicants are welcome.) Corporations, partnerships, and LLCs require an EIN, while sole proprietors do not. Instead, sole proprietors can use their Social Security Number, but that is not recommended as that exposes you to potential identity theft/fraud. In any case, it is a good idea to obtain one in case the company grows or for banking purposes.

Fortunately, you do not have to waste time dealing with the IRS on your own. Going through the IRS directly to get your EIN can be complicated, confusing, and frustrating. GovDocFiling alleviates the angst and aggravation of filing government documents, including applying for an EIN, or Tax ID number. Plus, GovDocFiling has one low price for same-day processing and delivery of your EIN (other Tax ID filing services charge more than $300 for same-day service!). Easily apply for your EIN/Tax ID online here. In addition, if you have any questions about obtaining an EIN, we offer 24/7 email and phone support to help you through the process. Emails are answered quickly at info@govdocfiling.com.

Once you designate how you prefer to be taxed, that decision must remain in effect for five years before being changed without approval from the IRS.

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Obtain an Employer Identification Number

Your LLC will need to file with the IRS for an Employee Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer.

Fill Out an Operating
Agreement

Once you’ve decided on member roles within your LLC, it is time to create a business contract that holds members to their assigned responsibilities. An LLC Operating Agreement in Nevada is a legal document that determines the financial and working relationships among business owners, members, and managers. Member duties would be explained and “what if” scenarios would be covered (such as what happens if a member leaves the LLC).

If you do not have an Operating Agreement set up for your business, when something unforeseeable happens, it will be up to the state to decide how to proceed justly, and this may not be what you want. The State of Nevada recognizes Operating Agreements as governing documents, assigning the roles of each member, who manages the LLC, how members are admitted/removed, dissolution of the LLC, and more.

While it is not one of the Nevada LLC requirements to have an Operating Agreement, it is still extremely important to have one in order to protect your business. You can have a lawyer look over your Operating Agreement prior to submitting it. Get the legal advice you need to protect yourself with our partner, Rocket Lawyer. Your company is responsible for maintaining copies of the Operating Agreement.

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Fill Out an Operating Agreement

Once you’ve decided on member roles within your LLC, it is time to create a business contract that holds members to their assigned responsibilities. An LLC Operating Agreement in Nevada is a legal document that determines the financial and working relationships among business owners, members, and managers.

Familiarize Yourself with the
State’s Taxes and Permits

Typically, pass-through entities such as LLCs are taxed based on personal income. For most states, it is either the income or the business’s legal form that is important when determining tax, but in Nevada, it depends on whether the business has employees.

While Nevada is one of four states that does not have a corporate income tax or a personal income tax, this doesn’t mean that no taxes are paid at all. If a business has employees and reports gross wages to the Nevada Employment Security Division (ESD), then it is subject to the modified business tax (MBT), described by the Nevada Department of Taxation as a quarterly payroll tax. If you have employees, you’ll need to register with the Nevada Department of Taxation (DOT) and the Nevada Employment Security Division (ESD). The state also has various other taxes. For example, if your business sells goods or services, you will have to pay a sales tax of 4.6%.

In addition, there may be extra fees for certain insurances, permits, and licenses. For example, you may need worker’s compensation insurance or a building permit, depending on the state’s laws and the type of business you own. Find out the requirements for LLCs in the state you plan to run your business in. Licenses and permits per city are listed on the Nevada Department of Business and Industry website. Keep in mind that different cities or counties may require certain permits and licenses that other regions do not. Contact your city or county to see if there are any insurances, permits, or licenses you might need to obtain before you begin operating your business.

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Familiarize Yourself with the State’s Taxes and Permits

Typically, pass-through entities such as LLCs are taxed based on personal income. For most states, it is either the income or the business’s legal form that is important when determining tax, but in Nevada, it depends on whether the business has employees.

File an Annual Report

The State of Nevada requires you to file an Annual Report--which is typically called an Annual List in Nevada. This asks some information on your LLC and its operation during the past year. The first Annual List is due on or before the last day of the first month after the Articles of Organization were filed. All subsequent Annual Lists are due on the last day of the month in which your LLC in Nevada was formed. A fee of $350, payable to the Nevada Secretary of State, is required with the submission of your Annual List. Keep in mind that all of the information you put on the form is accessible to the public on the Secretary of State’s website.

The report can be rather complex–requiring the deciphering of gross receipts, dividends, interest, losses, etc.–and you should seek the help of an accountant to ensure that it is filled out properly. Our partner, Bench, will provide you with a team of accountants to help you with your franchise tax reports, as well as general bookkeeping services with monthly financial statements and intuitive software to monitor your business profits and expenses.

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File an Annual Report

The State of Nevada requires you to file an Annual Report--which is typically called an Annual List in Nevada. This asks some information on your LLC and its operation during the past year.

Raise Funds for Your LLC

You can’t start a business with zero capital. There are legal fees, document filing fees, taxes, employees to pay if you are not an SMLLC, as well as the costs of operating a business. Some of the most commonly-used options for obtaining funding for your LLC are:

  • Personal savings and assets
  • Informal loans from family and friends
  • Peer-to-peer lending sites or crowdfunding
  • Conventional bank loan
  • Short-term credit card loans
  • Government-sponsored grants/loan programs
  • Adding LLC owners
saving_assets

Personal Saving/Assets

Use your own savings, liquidate your assets, refinance your home, borrow your Roth IRA, etc.

informal

Informal Loans From Family/Friends

Ask friends or family members if they would be willing to invest in your business.

pear_to_pear

Peer-to-Peer Landing Sites

LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

convertional

Conventional Bank Loan

LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

Many new LLC owners begin with their savings to fund their new business venture. If your savings are not enough, you may need to look into liquidating your personal assets or use them as collateral for loans. Can you sell your property or refinance your home? Do you have a retirement account such as a Traditional or Roth IRA? Usually, you can withdraw contributions you made to your IRA anytime, tax- and penalty-free, but that is not always the case. Find out what kind of fees your particular retirement plan will hit you with before using your IRA to fund your business.

Next, look into whether you know someone who shares your passion for your business and has the ability to contribute financially to your dream. These personal connections may want to support your startup idea. Although accepting an informal loan from a close friend or relative may feel safe, you should still protect yourself in case your relationship with the friend or family member goes sour. Have an official contract drawn up that all parties agree to. You can choose to have it notarized and have witnesses present for extra protection.

If you prefer not to borrow from friends and family, you can turn to a peer-to-peer (P2P) or social lending website. A P2P site is a place where investors seek out alternative opportunities to invest outside of stocks and bonds. You can apply for a loan and investors can decide whether or not they wish to fund your proposed business through interest-based loans. You can also look into crowdfunding, which is a way for small businesses or startups to raise money online through donations. These options typically require the ability to promote your business well, ensure complete transparency of where the funds go, and sometimes, the possibility of giving up ownership of a piece of your business. Make sure you look into all of the specifics.

You might be hoping to rely on a conventional loan from a bank, credit union or other lending institution for your main source of funds. In this case, you would need a formal business plan to present during your loan application process. If approved, you would be required to sign a legal contract, or a Promissory Note, outlining your obligations to the lender (which would primarily entail regular payments until the loan is paid off). If you are a first-time business owner, it is likely that you may be rejected initially. In that case, you can improve your application and reapply, or look into alternative sources of funding such as short-term financing via credit cards.

Using a credit card as a means of obtaining a fast and easy business loan would grant you use of immediate funds without the hassle and paperwork of loan applications or business plans. This is the best option for a brand new business, and we work with Nav to give our customers access to the credit they need. Visit our financing page and fill out the form for more information.

There are many credit cards that have low or no annual fees, low introductory interest rates, and other rewards depending on your spending. But be careful: make sure you pay back your credit card before the promotional low interest rate expires and skyrockets, or prior to having to pay large annual fees. And don’t make large purchases that can take years to pay back. For example, getting an equipment loan to purchase a piece of equipment is smarter than putting it on a credit card. Credit cards can be a good temporary solution if your business plan will allow you to pay back the debt quickly.

Another option at your disposal is a government-sponsored grant or loan program. Traditional lenders can turn to federal, state, or local governments to finance their business if such a grant or program is available. Typically, these programs consider sponsoring specific type of businesses or certain business owners, so be sure to research what government-sponsored loan your particular business or you might be eligible for.

Lastly, you can invite new members to your team. If you could see your businesses strategy succeeding with a partner or multiple partners, pool together your financial resources with another member to support your startup. An advantage to this funding option is your partner(s) may come with their own social network of business contacts and possibly even their own potential investors. To protect yourself, you can adjust your Operating Agreement and ensure that you are still the primary owner of the LLC.

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Raise Funds for Your LLC

You can’t start a business with zero capital. There are legal fees, document filing fees, taxes, employees to pay if you are not an SMLLC, as well as the costs of operating a business.

Create a Business Website

Creating a website for your business is not a requirement but it is recommended to any business owner operating in the modern world. An online presence is important to have and maintain in order to ensure that your customers trust your company and know they will receive good customer service. Having a website gives your business legitimacy; your customers will visit your website and see that you are a real company with an actual website where they can read about the company’s origin and products/services and access contact information. Being able to read up on a company on their website leads to trust between a consumer and an organization. Also, dependable customer service is often offered through a website. By offering an email address, a contact form, and/or live chat with a representative on your website, you are making it easy for a customer to get connected with someone knowledgeable about the product/service. That allows a customer to know that there is a real person who cares about their satisfaction within the company that they are doing business with.

Start LLC formation

If the website is outdated or there is no website, a consumer may feel that you are not a legitimate business but a scam with no licenses to back up your business’ operations. You can avoid losing customers due to not having a professional website by ensuring that you have one. We work with GoNorth Websites to provide new businesses with high quality, cost-effective websites. Find out more about our custom designed, written, and developed websites, plus optional internet marketing add-ons that help you grow your business.

But websites needs maintenance too. You can’t simply have one created and never update it throughout the years. Policies and terms change, companies grow, products/services improve, and all of that (and more) can be reflected on the website. This keeps your customers up-to-date and offers a personal touch that is valued by any consumer.

In addition, you can look into having a blog or utilizing social media as another means of keeping your customers in-the-know and offering them a way to interact with your company. An online and/or social media presence can also lead to responsive customers who can offer you feedback on how you’re doing—plus, it’ll help get your company’s name out there.

If this all sounds like more than you’d like to deal with on your own, know that you can hire someone to maintain your website and social media presence for you—just like you can hire customer representatives to handle all correspondence. You can employ a web agency to monitor your website and/or a social media marketing agency to manage your social media campaign. A social media campaign is a coordinated marketing plan that can assist you with your business goals, which translates into extra advertising for your new business. Marketing your company can help you have a more profitable business and can aid you with paying back your business loans quicker—something any business owner aims for. Regardless of industry, all businesses should consider having a website as part of the first steps of starting a business.

T The Benefits of Having an Online Presence
benefis_hand
You will show your customers that you are a legitimate business and build trust.
benefis_message
Your company will be easy to correspond with and you can provide good, responsive customer service.
benefis_calendar
Your customers will be kept up-to-date on all exciting news related to your business.

If you’ve decided that you want to have a website for your business, keep a few things in mind. When coming up with a website name, make sure that the domain contains your business name and is easy to type and remember for future visits. If you come up with a great web domain that you’d like to use for your business but you don’t plan to create a business website today, you may want to buy the URL to prevent others from acquiring it.

While brainstorming website URLs for your website, you’re going to either realize that you already know what your business is going to be named or that you have no idea what or how to name your business. Here are a few quick tips:

  • Follow LLC naming guidelines. Make sure that the name of your business ends with the phrase “Limited Liability Company” or the abbreviation “LLC.” It’s also important not to use any words or phrases that will make it easy for someone to mistake your company for a federal agency; think “State Department.”
  • Find a unique name. If you’re creating an LLC in the State of Nevada, you will need an original name that is not in use by another LLC. To see if a name has already been taken, you can search the Nevada Business Name Database.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of Nevada has a business with the same name. In that case, think of something more original.
liability
Decreased Liability
An LLC separates your personal assets from any business decisions made or actions undertaken by the LLC.
keeping
Reduced Record Keeping
When compared to a corporation structure, an LLC has less registration paperwork and startup expenses.
profit
Sharing of Profits
LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.
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Create a Business Website

Creating a website for your business is not a requirement but it is recommended to any business owner operating in the modern world.

Begin Operating Your Business

Once you become an LLC, make sure you keep your LLC compliant. Remember to file an annual report and keep up with your quarterly tax payments. if you’d rather not do these tasks yourself, you can sign up for a service that will automatically send you alerts ahead of crucial state and federal filing deadlines. Likewise, you can hire an accountant, a tax professional, and/or an attorney to ensure you are not making errors when keeping records, filling out paperwork, and making payments.

Next, make sure you’ve obtained all necessary licenses and obtained any extra insurance that your LLC might need—and you’re good to go! Begin operating your business in Nevada with peace of mind, knowing that you are protected by an LLC in case anything unforeseeable affects your new business venture.

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Begin Operating Your Business

Once you become an LLC, make sure you keep your LLC compliant. Remember to file an annual report and keep up with your quarterly tax payments.


Nebraska - LLC

Learn the Benefits of an LLC

There are many benefits to setting up an LLC in Nebraska. LLCs not only have more tax options, but they also offer decreased liability, reduced record keeping, and sharing of profits. They are simpler to set up and maintain, with much simpler rules and regulations. There is decidedly less registration paperwork and lower-costing startup expenses. The cost to set up an LLC in Nebraska is not as high as it is for a Nebraska C-corp or Nebraska S-corp.

gistogram
Decreased Liability
An LLC separates your personal assets from any business decisions made or actions undertaken by the LLC
doc
Reduced Record Keeping
When compared to a corporation structure, an LLC has less registration paperwork and startup expenses
profit
Sharing of Profits
LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

But is an LLC the right business structure for you? Some business types come with suggested business structures. For instance, many small business lawyers recommend you create an LLC in NE for an e-commerce business. Why? With e-commerce businesses, products fall under product liability statutes. This means that anyone involved in the sale and distribution of the product could be held liable—even if the problem lies with the manufacturer. An LLC provides you with limited liability in case you are sued by creating a separate and distinct legal entity and isolating business assets from your assets. Therefore, compensation can only be taken from the LLC’s assets, not your personal assets.

Why is an LLC a good idea for an e-commerce Business?

If there is an issue with a product, an LLC protects you. Compensation can only be taken from the LLC’s assets, not your personal assets.

Start Your LLC Now
transporter

Besides protecting you and your assets, creating an LLC provides a business owner with more options for federal tax purposes.

  • For instance, if an LLC has only one owner, it’s referred to as a single-member LLC or SMLLC.. Owners have the option of being taxed as a Sole Proprietorship, an S Corporation, or a C Corporation.
  • If an LLC has more than one owner, it’s categorized as a multiple-member LLC. Owners have the option of being taxed as a Partnership, an S Corporation, or a C Corporation.

An advantage to having an NE LLC with multiple members is that the members decide how to report profits and losses for tax purposes and have several options as to how they prefer to be taxed.

For federal tax purposes, if you’re the sole member of an LLC, your business is treated as a disregarded entity. This means that although you and your business are separate entities, the SMLLC’s income and expenses are reported on the owner’s personal tax return rather than an SMLLC tax return, and the IRS ignores the SMLLC’s status as a business entity. However, for purposes of employment tax and certain excise taxes, an SMLLC is still considered a separate entity. The way a sole proprietorship is taxed is the IRS’ default option for a single member LLC in Nebraska.

In contrast, a corporation only has two choices: S corporation or C corporation.. A business operated as a sole proprietorship or a partnership also doesn’t have an option as to how it will be taxed.

For those wanting to open an LLC in Nebraska, the best part is the fact that it combines the liability protection of a C Corporation with the tax treatment of any of the above business entities. Plus, it is easier to set up than a corporation

But Nebraska LLCs have a few disadvantages. If LLC owners do not choose to file for a tax status as a corporation, individual members pay high self-employment taxes. Also, if business owners decide they may want to take the company public and sell stock, a Nebraska LLC does not permit this (unless you file as an S corp in Nebraska). Despite these disadvantages, creating an LLC for your startup business is usually recommended. It is well worth it to protect your personal assets and simplify the process of forming an LLC in Nebraska.

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Learn the Benefits of an LLC

For most folks looking to start a business in Nebraska, the best type of company to form is what's known as a Limited Liability Company (LLC). An LLC can:

  • Run a business
  • Hold assets (such as office equipment/real estate)
  • Open a bank account
  • Enter into contracts

Assign Member Roles

Now it’s the time to decide whether you will run this business on your own or with another member’s or organization’s assistance, how small or large you intend for your team to be, and which duties each member will have.

There are two types of LLC management structures:
  • Member-managed LLC - Member-managed LLC - These may consist of single or multiple members. Each member plays an active role in the management and operation of the business and has the authority to make decisions to bind the LLC. This is ideal if the business is small, has limited resources, and all members have management skills.
  • Manager-managed LLC - These may consist of single or multiple members, but members must relinquish the authority to the manager and cannot interfere with the manager's operational decisions. This is ideal if your business is too large or complex to efficiently allow the sharing of management duties among all members, or if some of your members do not have management skills.

Member-managed LLC

All members can make authoritative decisions.

Works best when:

  • business is small
  • has limited resources
  • all members are skilled
manager
manager

Member-managed LLC

Only the manager can make authoritative decisions.

Works best when:

  • business is too large/complex
  • not all members are skilled

If you know your LLC will have employees, you also know that you will have to pay them. Plus, you will need to figure out the amount you should deduct from their wages for tax purposes. Employees will need to fill out a W-4 Form, and you will need to give them pay stubs with their tax information. Before this all gets overwhelming, keep in mind that we offer Payroll, Tax and HR compliance solutions with our partner, ADP.. We make it easy to pay your employees, track time, and file taxes effortlessly. Plus, you and your employees can view and update payroll information via an app--accessible anywhere, anytime, backed by 24/7 live customer service support.

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Assign Member Roles

Now it’s the time to decide whether you will run this business on your own or with another member’s or organization’s assistance, how small or large you intend for your team to be, and which duties each member will have.

Decide on a Registered Agent

Next, figure out who the Registered Agent for the LLC should be. The State of Nebraska requires every LLC in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately. The Registered Agent will also act as the contact point between the Nebraska Secretary of State and the LLC. Once you assign someone as your Registered Agent, they can receive official correspondence and documents on behalf of your business.

A Registered Agent can be either an individual who is a resident of Nebraska or a business entity that is authorized to conduct business in the state (but not your own business). This can be you or someone else within your company, but keep in mind that this person will be through whom the state has contact with your business. This agent will receive legal documents (known as “Service of Process”) that pertain to your business. You are legally required to have one.

Generally speaking, a Registered Agent in Nebraska for an LLC must meet the following requirements:
  • Possess a physical street address located in Nebraska (no P.O. Box address).
  • Be available during regular business hours, typically Monday through Friday, 9 am to 5 pm.

Although the most comfortable option for a Registered Agent would be to name yourself, a friend, or a family member, know that this information will be public record. Not only will the information be searchable on the state’s LLC website, it can also be republished on other sites as well. If you work from home and would much rather keep your home address private, this might not be the best choice. An alternative you can look into is hiring a Nebraska Registered Agent LLC Service. We also offer a Registered Agent Service for a small charge that you can include as an add-on to your shopping cart.

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Decide on a Registered Agent

Next, figure out who the Registered Agent for the LLC should be. The State of Nebraska requires every LLC in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately.

Submit Your Certificate
of Organization

As you get ready to apply for an LLC in Nebraska, you will need to register your Nebraska Limited Liability Company by submitting a form called the Certificate of Organization. The Certificate of Organization is filed with the Nebraska Secretary of State. The form includes information such as the LLC's name and address, the Registered Agent’s information, whether the LLC is run by managers or members, etc. If you also have an Operating Agreement written out, you would include a copy of it with the Certificate of Organization. Submitting your Certificate of Organization form in Nebraska is a requirement.

When filing your Nebraska LLC application, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of Nebraska LLC forms, and long wait times whether in person or by mail--especially if you’re filing for an LLC in Nebraska during peak season. GovDocFiling can speed up the process for you. We offer an easy online application, expedited pricing, and a free business start-up guide and resources with all filings. You can apply here today.

Once your completed Nebraska LLC Certificate of Organization form is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of Nebraska.

Afterwards, all newly formed LLCs must publish what is called a “Notice of Organization” in a newspaper with general circulation. The newspaper needs to be near your LLC’s location and the ad must run for 3 weeks. After the advertisement has finished its 3-week run, make sure that the newspaper mails you an Affidavit of Publication. Mail a copy of the Affidavit to the Nebraska Secretary of State and keep the original with your business records at all times.

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Submit Your Certificate of Organization

As you get ready to apply for an LLC in Nebraska, you will need to register your Nebraska Limited Liability Company by submitting a form called the Certificate of Organization.

Obtain an Employer
Identification Number

One of the Nebraska LLC tax filing requirements is getting an EIN. Your LLC will need to file with the IRS for an Employer Identification Number (EIN), which is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. (Note: you do not need an SSN to apply for an EIN, so international applicants are welcome.) Corporations, partnerships, and LLCs require an EIN, while sole proprietors do not. Instead, sole proprietors can use their Social Security Number, but that is not recommended as that exposes you to potential identity theft/fraud. In any case, it is a good idea to obtain one in case the company grows or for banking purposes.

Fortunately, you do not have to waste time dealing with the IRS on your own. Going through the IRS directly to get your EIN can be complicated, confusing, and frustrating. GovDocFiling alleviates the angst and aggravation of Nebraska business filing with the government, including applying for an EIN, or Tax ID number. Plus, GovDocFiling has one low price for same-day processing and delivery of your EIN (other Tax ID filing services charge more than $300 for same-day service!). Easily apply for your EIN/Tax ID online here. In addition, if you have any questions about obtaining an EIN, we offer 24/7 email and phone support to help you through the process. Emails are answered quickly at info@govdocfiling.com.

Once you designate how you prefer to be taxed, that decision must remain in effect for five years before being changed without approval from the IRS.

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Obtain an Employer Identification Number

One of the Nebraska LLC tax filing requirements is getting an EIN. Your LLC will need to file with the IRS for an Employer Identification Number (EIN), which is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer.

Fill Out an Operating
Agreement

Once you’ve decided on member roles within your LLC, it is time to create a business contract that holds members to their assigned responsibilities. An LLC Operating Agreement in Nebraska is a legal document that determines the financial and working relationships among business owners, members, and managers. Member duties would be explained and “what if” scenarios would be covered (such as what happens if a member leaves the LLC). If you do not have an Operating Agreement set up for your business, when something unforeseeable happens, it will be up to the state to decide how to proceed justly, and this may not be what you want.

While it is not a necessary part of a Nebraska LLC registration to have an Operating Agreement, it is still extremely important to have one in order to protect your business. You can have a lawyer look over your Nebraska LLC Operating Agreement form prior to submitting it. Get the legal advice you need to protect you and familiarize yourself with Nebraska LLC law with our partner, Rocket Lawyer. Your company is responsible for maintaining copies of the Operating Agreement.

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Fill Out an Operating Agreement

Once you’ve decided on member roles within your LLC, it is time to create a business contract that holds members to their assigned responsibilities. An LLC Operating Agreement in Nebraska is a legal document that determines the financial and working relationships among business owners, members, and managers.

Familiarize Yourself with the
State’s Taxes and Licenses

Income from pass-through entities, such as a Nebraska Limited Liability Company and Nebraska S corp, “pass through” the business to the owners, who are required to report this information on their personal tax returns. Each individual LLC member will then have to pay taxes on his or her share of the LLC’s income. The LLC itself does not pay federal income taxes, but some states do charge the LLC other various taxes. For example, employers owe payroll tax on employees wages. Additionally, Nebraska has a state sales and use tax rate of 5.5%. Most tax-related information can be found on the Official Nebraska Government Website.

Like most other states, Nebraska taxes corporation income, which will apply to you if your LLC is classified as a C corporation. In this case, Nebraska would treat the LLC as a corporation when it comes to taxes. Therefore, if your Nebraska LLC files taxes as a corporation, the company itself must file a separate tax return. There are two rates of corporate income tax: 5.58% and 7.81%, the higher rate for all corporate income greater than $50,000. More detailed information can be found on the Nebraska Department of Revenue (DOR) website.

In addition, there may be extra fees for certain insurances, permits, and licenses, depending on the state’s laws and the type of business you own. For example, you may need worker’s compensation, unemployment insurance, building permits, etc. Most Nebraska licenses and permits can be found here. Find out the requirements for LLCs in the state you plan to run your business in. Keep in mind that different cities or counties may require certain permits and licenses that other regions do not. Contact your city or county to see if there are any insurances, permits, or licenses you might need to obtain before you begin operating your business.

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Familiarize Yourself with the State’s Taxes and Licenses

Income from pass-through entities, such as a Nebraska Limited Liability Company and Nebraska S corp, “pass through” the business to the owners, who are required to report this information on their personal tax returns.

File a Biennial Occupation Tax Report

Like most states, the State of Nebraska requires all LLC owners to file a report that updates all the information that the Nebraska Secretary of State has on file. While most states require this report to be submitted annually for LLCs, Nebraska requires a submission biennially--each odd numbered year. The report is due on April 1st, along with a fee of $10 (plus an extra $3 for credit cards). Online filing is available on the Nebraska Secretary of State website. Filing a Biennial Report is necessary for maintaining an active status after starting an LLC in Nebraska. Not filing the report or paying the fee will result in being presented a Nebraska LLC dissolution form, after which the state will dissolve your business.

Biennial Reports can be rather complex–requiring the deciphering of gross receipts, dividends, interest, losses, and all Nebraska LLC fees–and you should seek the help of an accountant to ensure that it is filled out properly. Our partner, Bench, will provide you with a team of accountants to help you with your franchise tax reports, as well as general bookkeeping services with monthly financial statements and intuitive software to monitor your business profits and expenses.

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File a Biennial Occupation Tax Report

Like most states, the State of Nebraska requires all LLC owners to file a report that updates all the information that the Nebraska Secretary of State has on file.

Raise Funds for Your LLC

You can’t start a business with zero capital. There are legal fees, the Nebraska LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC Nebraska cost of operating a business. Some of the most commonly-used options for obtaining funding for your LLC are:

  • Personal savings and assets
  • Informal loans from family and friends
  • Peer-to-peer lending sites or crowdfunding
  • Conventional bank loan
  • Short-term credit card loans
  • Government-sponsored grants/loan programs
  • Adding LLC owners
saving_assets

Personal Saving/Assets

Use your own savings, liquidate your assets, refinance your home, borrow your Roth IRA, etc.

informal

Informal Loans From Family/Friends

Ask friends or family members if they would be willing to invest in your business.

pear_to_pear

Peer-to-Peer Landing Sites

LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

convertional

Conventional Bank Loan

LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

Many new LLC owners begin with their savings to fund their new business venture. If your savings are not enough, you may need to look into liquidating your personal assets or use them as collateral for loans. Can you sell your property or refinance your home? Do you have a retirement account such as a Traditional or Roth IRA? Usually, you can withdraw contributions you made to your IRA anytime, tax- and penalty-free, but that is not always the case. Find out what kind of fees your particular retirement plan will hit you with before using your IRA to fund your business.

Next, look into whether you know someone who shares your passion for your business and has the ability to contribute financially to your dream. These personal connections may want to support your startup idea. Although accepting an informal loan from a close friend or relative may feel safe, you should still protect yourself in case your relationship with the friend or family member goes sour. Have an official contract drawn up that all parties agree to. You can choose to have it notarized and have witnesses present for extra protection.

If you prefer not to borrow from friends and family, you can turn to a peer-to-peer (P2P) or social lending website. A P2P site is a place where investors seek out alternative opportunities to invest outside of stocks and bonds. You can apply for a loan and investors can decide whether or not they wish to fund your proposed business through interest-based loans. You can also look into crowdfunding, which is a way for small businesses or startups to raise money online through donations. These options typically require the ability to promote your business well, ensure complete transparency of where the funds go, and sometimes, the possibility of giving up ownership of a piece of your business. Make sure you look into all of the specifics.

You might be hoping to rely on a conventional loan from a bank, credit union or other lending institution for your main source of funds. In this case, you would need a formal business plan to present during your loan application process. If approved, you would be required to sign a legal contract, or a Promissory Note, outlining your obligations to the lender (which would primarily entail regular payments until the loan is paid off). If you are a first-time business owner, it is likely that you may be rejected initially. In that case, you can improve your application and reapply, or look into alternative sources of funding such as short-term financing via credit cards.

Using a credit card as a means of obtaining a fast and easy business loan would grant you use of immediate funds without the hassle and paperwork of loan applications or business plans. This is the best option for a brand new business, and we work with Nav to give our customers access to the credit they need. Visit our financing page and fill out the form for more information.

There are many credit cards that have low or no annual fees, low introductory interest rates, and other rewards depending on your spending. But be careful: make sure you pay back your credit card before the promotional low interest rate expires and skyrockets, or prior to having to pay large annual fees. And don’t make large purchases that can take years to pay back. For example, getting an equipment loan to purchase a piece of equipment is smarter than putting it on a credit card. Credit cards can be a good temporary solution if your business plan will allow you to pay back the debt quickly.

Another option at your disposal is a government-sponsored grant or loan program. Traditional lenders can turn to federal, state, or local governments to finance their business if such a grant or program is available. Typically, these programs consider sponsoring specific type of businesses or certain business owners, so be sure to research what government-sponsored loan your particular business or you might be eligible for.

Lastly, you can invite new members to your team. If you could see your businesses strategy succeeding with a partner or multiple partners, pool together your financial resources with another member to support your startup. An advantage to this funding option is your partner(s) may come with their own social network of business contacts and possibly even their own potential investors. To protect yourself, you can adjust your Operating Agreement and ensure that you are still the primary owner of the LLC.

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Raise Funds for Your LLC

You can’t start a business with zero capital. There are legal fees, the Nebraska LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC in Nebraska cost of operating a business.

Create a Business Website

Creating a website for your business is not a requirement but it is recommended to any business owner operating in the modern world. An online presence is important to have and maintain in order to ensure that your customers trust your company and know they will receive good customer service. Having a website gives your business legitimacy; your customers will visit your website and see that you are a real company with an actual website where they can read about the company’s origin and products/services and access contact information. Being able to read up on a company on their website leads to trust between a consumer and an organization. Also, dependable customer service is often offered through a website. By offering an email address, a contact form, and/or live chat with a representative on your website, you are making it easy for a customer to get connected with someone knowledgeable about the product/service. That allows a customer to know that there is a real person who cares about their satisfaction within the company that they are doing business with.

Start LLC formation

If the website is outdated or there is no website, a consumer may feel that you are not a legitimate business but a scam with no licenses to back up your business’ operations. You can avoid losing customers due to not having a professional website by ensuring that you have one. We work with GoNorth Websites to provide new businesses with high quality, cost-effective websites. Find out more about our custom designed, written, and developed websites, plus optional internet marketing add-ons that help you grow your business.

But websites needs maintenance too. You can’t simply have one created and never update it throughout the years. Policies and terms change, companies grow, products/services improve, and all of that (and more) can be reflected on the website. This keeps your customers up-to-date and offers a personal touch that is valued by any consumer.

In addition, you can look into having a blog or utilizing social media as another means of keeping your customers in-the-know and offering them a way to interact with your company. An online and/or social media presence can also lead to responsive customers who can offer you feedback on how you’re doing—plus, it’ll help get your company’s name out there.

If this all sounds like more than you’d like to deal with on your own, know that you can hire someone to maintain your website and social media presence for you—just like you can hire customer representatives to handle all correspondence. You can employ a web agency to monitor your website and/or a social media marketing agency to manage your social media campaign. A social media campaign is a coordinated marketing plan that can assist you with your business goals, which translates into extra advertising for your new business. Marketing your company can help you have a more profitable business and can aid you with paying back your business loans quicker—something any business owner aims for. Regardless of industry, all businesses should consider having a website as part of the first steps of starting a business.

T The Benefits of Having an Online Presence
benefis_hand
You will show your customers that you are a legitimate business and build trust.
benefis_message
Your company will be easy to correspond with and you can provide good, responsive customer service.
benefis_calendar
Your customers will be kept up-to-date on all exciting news related to your business.

If you’ve decided that you want to have a website for your business, keep a few things in mind. When coming up with a website name, make sure that the domain contains your business name and is easy to type and remember for future visits. If you come up with a great web domain that you’d like to use for your business but you don’t plan to create a business website today, you may want to buy the URL to prevent others from acquiring it.

While brainstorming website URLs for your website, you’re going to either realize that you already know what your business is going to be named or that you have no idea what or how to name your business. Here are a few quick Nebraska LLC name tips:

  • Follow LLC naming guidelines. Make sure that the name of your business ends with the phrase “Limited Liability Company” or the abbreviation “LLC.” It’s also important not to use any words or phrases that will make it easy for someone to mistake your company for a federal agency; think “State Department.”
  • Find a unique name. If you’re getting an LLC in Nebraska you will need an original name that is not in use by another LLC. To check if a name has already been taken, you can search the Business Name Search Database. If you are not ready to file your Nebraska LLC today but want to reserve a name to ensure that it is not taken, you can file a Name Reservation Form along with a $10 fee (plus $5 per page), which will reserve the business name for you for 120 days.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of Nebraska has a business with the same name. In that case, think of something more original.
liability
Decreased Liability
An LLC separates your personal assets from any business decisions made or actions undertaken by the LLC.
keeping
Reduced Record Keeping
When compared to a corporation structure, an LLC has less registration paperwork and startup expenses.
profit
Sharing of Profits
LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.
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Create a Business Website

Creating a website for your business is not a requirement but it is recommended to any business owner operating in the modern world.

Begin Operating Your Business

Once you complete your Nebraska LLC formation, make sure to keep your LLC compliant. To do so, keep track of all important dates, such as those for filing annual documents and license/permit renewals, and pay all necessary Nebraska LLC fees. If you’d rather not do these tasks yourself, you can sign up for a service that will automatically send you alerts ahead of crucial state and federal filing deadlines. Likewise, you can hire an accountant, a tax professional, and/or an attorney to ensure you are not making errors when keeping records, filling out paperwork, and making payments.

You can begin operating your business in Nebraska with peace of mind, knowing that you are protected by an LLC in case anything unforeseeable affects your new business venture.

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Begin Operating Your Business

Once you complete your Nebraska LLC formation, make sure to keep your LLC compliant. To do so, keep track of all important dates, such as those for filing annual documents and license/permit renewals, and pay all necessary Nebraska LLC fees.


Montana - LLC

Learn the Benefits of an LLC

There are many benefits to setting up an LLC in MN. LLCs not only have more tax options, but they also offer decreased liability, reduced record keeping, and sharing of profits. They are simpler to set up and maintain, with much simpler rules and regulations. There is decidedly less registration paperwork and lower-costing startup expenses. The cost to set up an LLC in Montana is not as high as it is for a Montana C corp or Montana S corp.

gistogram
Decreased Liability
An LLC separates your personal assets from any business decisions made or actions undertaken by the LLC
doc
Reduced Record Keeping
When compared to a corporation structure, an LLC has less registration paperwork and startup expenses
profit
Sharing of Profits
LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

But is an LLC the right business structure for you? Some business types come with suggested business structures. For instance, many small business lawyers recommend you create an LLC in MT for an e-commerce business. Why? With e-commerce businesses, products fall under product liability statutes. This means that anyone involved in the sale and distribution of the product could be held liable—even if the problem lies with the manufacturer. An LLC provides you with limited liability in case you are sued by creating a separate and distinct legal entity and isolating business assets from your assets. Therefore, compensation can only be taken from the LLC’s assets, not your personal assets.

Why is an LLC a good idea for an e-commerce Business?

If there is an issue with a product, an LLC protects you. Compensation can only be taken from the LLC’s assets, not your personal assets.

Start Your LLC Now
transporter

Besides protecting you and your assets, creating an LLC provides a business owner with more options for federal tax purposes.

  • For instance, if an LLC has only one owner, it’s referred to as a single-member LLC or SMLLC.. Owners have the option of being taxed as a Sole Proprietorship, an S Corporation, or a C Corporation.
  • If an LLC has more than one owner, it’s categorized as a multiple-member LLC. Owners have the option of being taxed as a Partnership, an S Corporation, or a C Corporation.

An advantage to having an MT LLC with multiple members is that the members decide how to report profits and losses for tax purposes and have several options as to how they prefer to be taxed.

For federal tax purposes, if you’re the sole member of an LLC, your business is treated as a disregarded entity. This means that although you and your business are separate entities, the SMLLC’s income and expenses are reported on the owner’s personal tax return rather than an SMLLC tax return, and the IRS ignores the SMLLC’s status as a business entity. However, for purposes of employment tax and certain excise taxes, an SMLLC is still considered a separate entity. The way a sole proprietorship is taxed is the IRS’ default option for a single member LLC in Montana.

In contrast, a corporation only has two choices: S corporation or C corporation.. A business operated as a sole proprietorship or a partnership also doesn’t have an option as to how it will be taxed.

For those wanting to open an LLC in Montana, the best part is the fact that it combines the liability protection of a C Corporation with the tax treatment of any of the above business entities. Plus, it is easier to set up than a corporation.

But Montana LLCs have a few disadvantages. If LLC owners do not choose to file for a tax status as a corporation, individual members pay high self-employment taxes. Also, if business owners decide they may want to take the company public and sell stock, a Montana LLC does not permit this (unless you file as an S corp in Montana). Despite these disadvantages, creating an LLC for your startup business is usually recommended. It is well worth it to protect your personal assets and simplify the process of starting an LLC in Montana.

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Learn the Benefits of an LLC

For most folks looking to start a business in Montana, the best type of company to form is what's known as a Limited Liability Company (LLC). An LLC can:

  • Run a business
  • Hold assets (such as office equipment/real estate)
  • Open a bank account
  • Enter into contracts

Assign Member Roles

Now it’s the time to decide whether you will run this business on your own or with another member’s or organization’s assistance, how small or large you intend for your team to be, and which duties each member will have.

There are two types of LLC management structures:
  • Member-managed LLC - Member-managed LLC - These may consist of single or multiple members. Each member plays an active role in the management and operation of the business and has the authority to make decisions to bind the LLC. This is ideal if the business is small, has limited resources, and all members have management skills.
  • Manager-managed LLC - These may consist of single or multiple members, but members must relinquish the authority to the manager and cannot interfere with the manager's operational decisions. This is ideal if your business is too large or complex to efficiently allow the sharing of management duties among all members, or if some of your members do not have management skills.

Member-managed LLC

All members can make authoritative decisions.

Works best when:

  • business is small
  • has limited resources
  • all members are skilled
manager
manager

Member-managed LLC

Only the manager can make authoritative decisions.

Works best when:

  • business is too large/complex
  • not all members are skilled

If you know your LLC will have employees, you also know that you will have to pay them. Plus, you will need to figure out the amount you should deduct from their wages for tax purposes. Employees will need to fill out a W-4 Form, and you will need to give them pay stubs with their tax information. Before this all gets overwhelming, keep in mind that we offer Payroll, Tax and HR compliance solutions with our partner, ADP.. We make it easy to pay your employees, track time, and file taxes effortlessly. Plus, you and your employees can view and update payroll information via an app--accessible anywhere, anytime, backed by 24/7 live customer service support.

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Assign Member Roles

Now it’s the time to decide whether you will run this business on your own or with another member’s or organization’s assistance, how small or large you intend for your team to be, and which duties each member will have.

Decide on a Registered Agent

Next, figure out who the Registered Agent for the LLC should be. The State of Montana requires every LLC in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately. The Registered Agent will also act as the contact point between the Montana Secretary of State and the LLC. Once you assign someone as your Registered Agent, they can receive official correspondence and documents on behalf of your business.

A Registered Agent can be either an individual who is a resident of Montana or a business entity that is authorized to conduct business in the state (but not your own business). This can be you or someone else within your company, but keep in mind that this person will be through whom the state has contact with your business. This agent will receive legal documents (known as “Service of Process”) that pertain to your business. You are legally required to have one.

Generally speaking, a Registered Agent in Montana for an LLC must meet the following requirements:
  • Possess a physical street address located in Montana (no P.O. Box address).
  • Be available during regular business hours, typically Monday through Friday, 9 am to 5 pm.

Although the most comfortable option for a Registered Agent would be to name yourself, a friend, or a family member, know that this information will be public record. Not only will the information be searchable on the state’s LLC website, it can also be republished on other sites as well. If you work from home and would much rather keep your home address private, this might not be the best choice. An alternative you can look into is hiring a Montana Registered Agent LLC Service. We also offer a Registered Agent Service for a small charge that you can include as an add-on to your shopping cart.

It has become more common for businesses to use Registered Agent Services, or Commercial Registered Agents, as their LLC’s Registered Agent. At one point, Montana Legislature passed the Model Registered Agent Act (MORAA) which treats Commercial Registered Agents differently than Noncommercial Registered Agents. Commercial Registered Agents must file a listing statement with the Montana Secretary of State.

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Decide on a Registered Agent

Next, figure out who the Registered Agent for the LLC should be. The State of Montana requires every LLC in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately.

Submit Your Articles
of Organization

As you get ready to apply for an LLC in Montana, you will need to register your Montana Limited Liability Company by submitting a form called the Articles of Organization. The Articles of Organization are filed with the Montana Secretary of State. The form includes information such as the LLC's name and address, the Registered Agent’s information, whether the LLC is run by managers or members, etc. If you also have an Operating Agreement written out, you would include a copy of it with the Articles of Organization. Submitting your Articles of Organization in Montana is a requirement.

When filing your Montana LLC application, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of Montana LLC forms, and long wait times whether in person or by mail--especially if you’re filing for an LLC in Montana during peak season. GovDocFiling can speed up the process for you. We offer an easy online application, expedited pricing, and a free business start-up guide and resources with all filings. You can apply here today.

Once your completed Montana LLC Articles of Organization form is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of Montana.

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Submit Your Articles of Organization

As you get ready to apply for an LLC in Montana, you will need to register your Montana Limited Liability Company by submitting a form called the Articles of Organization.

Obtain an Employer
Identification Number

One of the Montana LLC tax filing requirements is getting an EIN. Your LLC will need to file with the IRS for an Employer Identification Number (EIN), which is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. (Note: you do not need an SSN to apply for an EIN, so international applicants are welcome.) Corporations, partnerships, and LLCs require an EIN, while sole proprietors do not. Instead, sole proprietors can use their Social Security Number, but that is not recommended as that exposes you to potential identity theft/fraud. In any case, it is a good idea to obtain one in case the company grows or for banking purposes.

Fortunately, you do not have to waste time dealing with the IRS on your own. Going through the IRS directly to get your EIN can be complicated, confusing, and frustrating. GovDocFiling alleviates the angst and aggravation of Montana business filing with the government, including applying for an EIN, or Tax ID number. Plus, GovDocFiling has one low price for same-day processing and delivery of your EIN (other Tax ID filing services charge more than $300 for same-day service!). Easily apply for your EIN/Tax ID online here. In addition, if you have any questions about obtaining an EIN, we offer 24/7 email and phone support to help you through the process. Emails are answered quickly at info@govdocfiling.com.

Once you designate how you prefer to be taxed, that decision must remain in effect for five years before being changed without approval from the IRS.

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Obtain an Employer Identification Number

One of the Montana LLC tax filing requirements is getting an EIN. Your LLC will need to file with the IRS for an Employer Identification Number (EIN), which is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer.

Fill Out an Operating
Agreement

Once you’ve decided on member roles within your LLC, it is time to create a business contract that holds members to their assigned responsibilities. An LLC Operating Agreement in Montana is a legal document that determines the financial and working relationships among business owners, members, and managers. Member duties would be explained and “what if” scenarios would be covered (such as what happens if a member leaves the LLC). If you do not have an Operating Agreement set up for your business, when something unforeseeable happens, it will be up to the state to decide how to proceed justly, and this may not be what you want.

While it is not a necessary part of a Montana LLC registration to have an Operating Agreement, it is still extremely important to have one in order to protect your business. You can have a lawyer look over your Operating Agreement form prior to submitting it. Get the legal advice you need to protect you and familiarize yourself with Montana LLC law with our partner, Rocket Lawyer. Your company is responsible for maintaining copies of the Operating Agreement.

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Fill Out an Operating Agreement

Once you’ve decided on member roles within your LLC, it is time to create a business contract that holds members to their assigned responsibilities. An LLC Operating Agreement in Montana is a legal document that determines the financial and working relationships among business owners, members, and managers.

Familiarize Yourself with the
State’s Taxes and Licenses

Income from pass-through entities such as Montana Limited Liability Companies and Montana S corps “pass through” the business to the owners, who are required to report this information on their personal tax returns. Each individual LLC member will then have to pay taxes on his or her share of the LLC’s income. The LLC itself does not pay federal income taxes, but some states do charge the LLC other various taxes. For example, employers owe payroll tax on employees wages. Good news for prospective business owners in Montana: the state does not have a general sales, use, or transaction tax.

Like most other states, Montana taxes corporation income, which will apply to you if your LLC is classified as a C corporation. In this case, Montana would treat the LLC as a corporation when it comes to taxes. Therefore, if your Montana LLC files taxes as a corporation, the company itself must file a separate tax return. In Montana, the corporate tax is generally calculated at a flat 6.75% of net income earned in Montana and is filed with the Montana Department of Revenue (DOR). More tax info can be found on the DOR website.

In addition, there may be extra fees for certain insurances, permits, and licenses, depending on the state’s laws and the type of business you own. For example, you may need worker’s compensation, unemployment insurance, building permits, etc. Unemployment insurance information can be found on the Montana Department of Labor and Industry website, with additional information here. You can find a list of state licenses on the Montana Department of Revenue website. Find out the requirements for LLCs in the state you plan to run your business in. Keep in mind that different cities or counties may require certain permits and licenses that other regions do not. Contact your city or county to see if there are any insurances, permits, or licenses you might need to obtain before you begin operating your business.

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Familiarize Yourself with the State’s Taxes and Licenses

Income from pass-through entities such as Montana Limited Liability Companies and Montana S corps “pass through” the business to the owners, who are required to report this information on their personal tax returns.

File an Annual Report

Like most states, the State of Montana requires all LLC owners to file an Annual Report. It is due on or before April 15 of each year, along with a fee payable to the State of Montana. The MT filing fee is $20 if paid by 5pm on April 15, $35 if afterwards.

Online filing is available on the Montana Secretary of State website. Filing an Annual Statement is necessary for maintaining an active status after starting a business in Montana. Not filing an Annual Statement or paying the fee will result in being presented a Montana LLC dissolution form, after which the state will dissolve your business.

The statement can be rather complex–requiring the deciphering of gross receipts, dividends, interest, losses, and all Montana LLC fees–and you should seek the help of an accountant to ensure that it is filled out properly. Our partner, Bench, will provide you with a team of accountants to help you with your franchise tax reports, as well as general bookkeeping services with monthly financial statements and intuitive software to monitor your business profits and expenses.

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File an Annual Report

Like most states, the State of Montana requires all LLC owners to file an Annual Report. It is due on or before April 15 of each year, along with a fee payable to the State of Montana.

Raise Funds for Your LLC

You can’t start a business with zero capital. There are legal fees, the Montana LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC in Montana cost of operating a business. Some of the most commonly-used options for obtaining funding for your LLC are:

  • Personal savings and assets
  • Informal loans from family and friends
  • Peer-to-peer lending sites or crowdfunding
  • Conventional bank loan
  • Short-term credit card loans
  • Government-sponsored grants/loan programs
  • Adding LLC owners
saving_assets

Personal Saving/Assets

Use your own savings, liquidate your assets, refinance your home, borrow your Roth IRA, etc.

informal

Informal Loans From Family/Friends

Ask friends or family members if they would be willing to invest in your business.

pear_to_pear

Peer-to-Peer Landing Sites

LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

convertional

Conventional Bank Loan

LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

Many new LLC owners begin with their savings to fund their new business venture. If your savings are not enough, you may need to look into liquidating your personal assets or use them as collateral for loans. Can you sell your property or refinance your home? Do you have a retirement account such as a Traditional or Roth IRA? Usually, you can withdraw contributions you made to your IRA anytime, tax- and penalty-free, but that is not always the case. Find out what kind of fees your particular retirement plan will hit you with before using your IRA to fund your business.

Next, look into whether you know someone who shares your passion for your business and has the ability to contribute financially to your dream. These personal connections may want to support your startup idea. Although accepting an informal loan from a close friend or relative may feel safe, you should still protect yourself in case your relationship with the friend or family member goes sour. Have an official contract drawn up that all parties agree to. You can choose to have it notarized and have witnesses present for extra protection.

If you prefer not to borrow from friends and family, you can turn to a peer-to-peer (P2P) or social lending website. A P2P site is a place where investors seek out alternative opportunities to invest outside of stocks and bonds. You can apply for a loan and investors can decide whether or not they wish to fund your proposed business through interest-based loans. You can also look into crowdfunding, which is a way for small businesses or startups to raise money online through donations. These options typically require the ability to promote your business well, ensure complete transparency of where the funds go, and sometimes, the possibility of giving up ownership of a piece of your business. Make sure you look into all of the specifics.

You might be hoping to rely on a conventional loan from a bank, credit union or other lending institution for your main source of funds. In this case, you would need a formal business plan to present during your loan application process. If approved, you would be required to sign a legal contract, or a Promissory Note, outlining your obligations to the lender (which would primarily entail regular payments until the loan is paid off). If you are a first-time business owner, it is likely that you may be rejected initially. In that case, you can improve your application and reapply, or look into alternative sources of funding such as short-term financing via credit cards.

Using a credit card as a means of obtaining a fast and easy business loan would grant you use of immediate funds without the hassle and paperwork of loan applications or business plans. This is the best option for a brand new business, and we work with Nav to give our customers access to the credit they need. Visit our financing page and fill out the form for more information.

There are many credit cards that have low or no annual fees, low introductory interest rates, and other rewards depending on your spending. But be careful: make sure you pay back your credit card before the promotional low interest rate expires and skyrockets, or prior to having to pay large annual fees. And don’t make large purchases that can take years to pay back. For example, getting an equipment loan to purchase a piece of equipment is smarter than putting it on a credit card. Credit cards can be a good temporary solution if your business plan will allow you to pay back the debt quickly.

Another option at your disposal is a government-sponsored grant or loan program. Traditional lenders can turn to federal, state, or local governments to finance their business if such a grant or program is available. Typically, these programs consider sponsoring specific type of businesses or certain business owners, so be sure to research what government-sponsored loan your particular business or you might be eligible for.

Lastly, you can invite new members to your team. If you could see your businesses strategy succeeding with a partner or multiple partners, pool together your financial resources with another member to support your startup. An advantage to this funding option is your partner(s) may come with their own social network of business contacts and possibly even their own potential investors. To protect yourself, you can adjust your Operating Agreement and ensure that you are still the primary owner of the LLC.

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Raise Funds for Your LLC

You can’t start a business with zero capital. There are legal fees, the Montana LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC in Montana cost of operating a business.

Create a Business Website

Creating a website for your business is not a requirement but it is recommended to any business owner operating in the modern world. An online presence is important to have and maintain in order to ensure that your customers trust your company and know they will receive good customer service. Having a website gives your business legitimacy; your customers will visit your website and see that you are a real company with an actual website where they can read about the company’s origin and products/services and access contact information. Being able to read up on a company on their website leads to trust between a consumer and an organization. Also, dependable customer service is often offered through a website. By offering an email address, a contact form, and/or live chat with a representative on your website, you are making it easy for a customer to get connected with someone knowledgeable about the product/service. That allows a customer to know that there is a real person who cares about their satisfaction within the company that they are doing business with.

Start LLC formation

If the website is outdated or there is no website, a consumer may feel that you are not a legitimate business but a scam with no licenses to back up your business’ operations. You can avoid losing customers due to not having a professional website by ensuring that you have one. We work with GoNorth Websites to provide new businesses with high quality, cost-effective websites. Find out more about our custom designed, written, and developed websites, plus optional internet marketing add-ons that help you grow your business.

But websites needs maintenance too. You can’t simply have one created and never update it throughout the years. Policies and terms change, companies grow, products/services improve, and all of that (and more) can be reflected on the website. This keeps your customers up-to-date and offers a personal touch that is valued by any consumer.

In addition, you can look into having a blog or utilizing social media as another means of keeping your customers in-the-know and offering them a way to interact with your company. An online and/or social media presence can also lead to responsive customers who can offer you feedback on how you’re doing—plus, it’ll help get your company’s name out there.

If this all sounds like more than you’d like to deal with on your own, know that you can hire someone to maintain your website and social media presence for you—just like you can hire customer representatives to handle all correspondence. You can employ a web agency to monitor your website and/or a social media marketing agency to manage your social media campaign. A social media campaign is a coordinated marketing plan that can assist you with your business goals, which translates into extra advertising for your new business. Marketing your company can help you have a more profitable business and can aid you with paying back your business loans quicker—something any business owner aims for. Regardless of industry, all businesses should consider having a website as part of the first steps of starting a business.

T The Benefits of Having an Online Presence
benefis_hand
You will show your customers that you are a legitimate business and build trust.
benefis_message
Your company will be easy to correspond with and you can provide good, responsive customer service.
benefis_calendar
Your customers will be kept up-to-date on all exciting news related to your business.

If you’ve decided that you want to have a website for your business, keep a few things in mind. When coming up with a website name, make sure that the domain contains your business name and is easy to type and remember for future visits. If you come up with a great web domain that you’d like to use for your business but you don’t plan to create a business website today, you may want to buy the URL to prevent others from acquiring it.

While brainstorming website URLs for your website, you’re going to either realize that you already know what your business is going to be named or that you have no idea what or how to name your business. Here are a few quick Montana LLC name tips:

  • Follow LLC naming guidelines. Make sure that the name of your business ends with the phrase “Limited Liability Company” or the abbreviation “LLC.” It’s also important not to use any words or phrases that will make it easy for someone to mistake your company for a federal agency; think “State Department.”
  • Find a unique name. If you’re getting an LLC in Montana you will need an original name that is not in use by another LLC. To check if a name has already been taken, you can search the Business Name Search Database.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of Montana has a business with the same name. In that case, think of something more original.
liability
Decreased Liability
An LLC separates your personal assets from any business decisions made or actions undertaken by the LLC.
keeping
Reduced Record Keeping
When compared to a corporation structure, an LLC has less registration paperwork and startup expenses.
profit
Sharing of Profits
LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.
ten
step 10 /11

Create a Business Website

Creating a website for your business is not a requirement but it is recommended to any business owner operating in the modern world.

Begin Operating Your Business

Once you complete your Montana LLC formation, make sure to keep your LLC compliant. To do so, keep track of all important dates, such as those for filing annual documents and license/permit renewals, and pay all necessary Montana LLC fees. If you’d rather not do these tasks yourself, you can sign up for a service that will automatically send you alerts ahead of crucial state and federal filing deadlines. Likewise, you can hire an accountant, a tax professional, and/or an attorney to ensure you are not making errors when keeping records, filling out paperwork, and making payments.

You can begin operating your business in Montana with peace of mind, knowing that you are protected by an LLC in case anything unforeseeable affects your new business venture.

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Begin Operating Your Business

Once you complete your Montana LLC formation, make sure to keep your LLC compliant. To do so, keep track of all important dates, such as those for filing annual documents and license/permit renewals, and pay all necessary Montana LLC fees.


Missouri - LLC

Learn the Benefits of an LLC

There are many benefits to setting up your business as an LLC. LLCs not only have more tax options, but they also offer decreased liability, reduced record keeping, and sharing of profits. They are simpler to set up and maintain, with much simpler rules and regulations. There is decidedly less registration paperwork and lower-costing startup expenses.

gistogram
Decreased Liability
An LLC separates your personal assets from any business decisions made or actions undertaken by the LLC
doc
Reduced Record Keeping
When compared to a corporation structure, an LLC has less registration paperwork and startup expenses
profit
Sharing of Profits
LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

But is an LLC the right business structure for you? Some business types come with suggested business structures. For instance, many small business lawyers recommend you create an LLC for an e-commerce business. Why? With e-commerce businesses, products fall under product liability statutes. This means that anyone involved in the sale and distribution of the product could be held liable—even if the problem lies with the manufacturer. An LLC provides you with limited liability in case you are sued by creating a separate and distinct legal entity and isolating business assets from your assets. Therefore, compensation can only be taken from the LLC’s assets, not your personal assets.

Why is an LLC a good idea for an e-commerce Business?

If there is an issue with a product, an LLC protects you. Compensation can only be taken from the LLC’s assets, not your personal assets.

Start Your LLC Now
transporter

Besides protecting you and your assets, creating an LLC provides a business owner with more options for federal tax purposes.

  • For instance, if an LLC has only one owner, it’s referred to as a single-member LLC or SMLLC.. Owners have the option of being taxed as a Sole Proprietorship, an S Corporation, or a C Corporation.
  • If an LLC has more than one owner, it’s categorized as a multiple-member LLC. Owners have the option of being taxed as a Partnership, an S Corporation, or a C Corporation.

All LLC members will need to pay federal and Missouri income tax plus federal self-employment tax on their share of the profits. Self-employment tax covers the Medicare and Social Security contributions that are not withheld from their paycheck. An advantage to having a MO LLC with multiple members is that the members decide how to report profits and losses for tax purposes and have several options as to how they prefer to be taxed (for example, an S or C corp or a partnership).

For federal tax purposes, if you’re the sole member of an LLC, your business is treated as a disregarded entity. This means that although you and your business are separate entities, the SMLLC’s income and expenses are reported on the owner’s personal tax return rather than an SMLLC tax return, and the IRS ignores the SMLLC’s status as a business entity. However, for purposes of employment tax and certain excise taxes, an SMLLC is still considered a separate entity.

In contrast, a corporation only has two choices: S corporation or C corporation.. A business operated as a sole proprietorship or a partnership also doesn’t have an option as to how it will be taxed.

Missouri LLCs have a few disadvantages. If LLC owners do not choose to file for a tax status as a corporation, individual members pay high self-employment taxes. Those taxes often are higher than corporate taxes. Also, if business owners contemplate taking the company public and selling stock, an LLC does not permit this (unless you file as an S corporation). Despite these disadvantages, creating an LLC for your startup business is usually recommended. It is well worth it to protect your personal assets and simplify the process of starting a business.

one
step 1 /11

Learn the Benefits of an LLC

For most folks looking to start a business in Missouri, the best type of company to form is what's known as a Limited Liability Company (LLC). An LLC can:

  • Run a business
  • Hold assets (such as office equipment/real estate)
  • Open a bank account
  • Enter into contracts

Assign Member Roles

Now it’s the time to decide whether you will run this business on your own or with another member’s or organization’s assistance, how small or large you intend for your team to be, and which duties each member will have.

There are two types of LLC management structures:
  • Member-managed LLC - Member-managed LLC - These may consist of single or multiple members. Each member plays an active role in the management and operation of the business and has the authority to make decisions to bind the LLC. This is ideal if the business is small, has limited resources, and all members have management skills.
  • Manager-managed LLC - These may consist of single or multiple members, but members must relinquish the authority to the manager and cannot interfere with the manager's operational decisions. This is ideal if your business is too large or complex to efficiently allow the sharing of management duties among all members, or if some of your members do not have management skills.

Member-managed LLC

All members can make authoritative decisions.

Works best when:

  • business is small
  • has limited resources
  • all members are skilled
manager
manager

Member-managed LLC

Only the manager can make authoritative decisions.

Works best when:

  • business is too large/complex
  • not all members are skilled

If you know your LLC will have employees, you also know that you will have to pay them. Plus, you will need to figure out the amount you should deduct from their wages for tax purposes. Employees will need to fill out a W-4 Form, and you will need to give them pay stubs with their tax information. Before this all gets overwhelming, keep in mind that we offer Payroll, Tax and HR compliance solutions with our partner, ADP.. We make it easy to pay your employees, track time, and file taxes effortlessly. Plus, you and your employees can view and update payroll information via an app--accessible anywhere, anytime, backed by 24/7 live customer service support.

two
step 2 /11

Assign Member Roles

Now it’s the time to decide whether you will run this business on your own or with another member’s or organization’s assistance, how small or large you intend for your team to be, and which duties each member will have.

Decide on a Registered Agent

Next, figure out who the Registered Agent for your LLC should be. The State of Missouri requires every LLC in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately. The Registered Agent will also act as the contact point between your LLC and the Missouri Secretary of State’s office. Once you assign someone as your Registered Agent, they can receive official correspondence and documents on behalf of your business.

A Registered Agent can be either an individual who is a resident of Missouri or a business entity that is authorized to conduct business in the state (but not your own business). This can be you or someone else within your company, but keep in mind that this person will be through whom the state has contact with your business. This agent will receive legal documents (known as “Service of Process”) that pertain to your business. You are legally required to have one.

Generally speaking, a Registered Agent for a Missouri LLC must meet the following requirements:
  • Possess a physical street address located in Missouri (no P.O. Box address).
  • Be available during regular business hours, typically Monday through Friday, 9 am to 5 pm.

Although the most comfortable option for a Registered Agent would be to name yourself, a friend, or a family member, know that this information will be public record. Not only will the information be searchable on the state of Missouri’s website, it can also be republished on other sites as well. If you work from home and would much rather keep your home address private, this might not be the best choice. An alternative you can look into is hiring a Missouri Registered Agent Service. We also offer a Registered Agent Service for a small charge that you can include as an add-on to your shopping cart.

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step 3 /11

Decide on a Registered Agent

Next, figure out who the Registered Agent for your LLC should be. The State of Missouri requires every LLC in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately.

Submit Your Certificate
of Formation

To create an LLC in Missouri, you will also need to register your business by filing the Articles of Organization form with the Missouri Secretary of State. This form includes information such as the LLC's name and address, the registered agent’s information, whether the LLC is run by managers or members, etc. If you also have an Operating Agreement written out, you would include a copy of it with the Articles of Organization while submitting it.

Submitting your Articles of Organization is a requirement. Failure to register will result in monetary penalties as well as other legal issues. In addition, anyone owing money to the business will not be obligated to pay.

If filing on your own, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of forms, and long wait times whether in person or by mail--especially if you’re filing for an LLC during peak season. GovDocFiling can speed up the process for you. We offer an easy online application, expedited pricing, and a free business start-up guide and resources with all filings. You can apply here today.

Once your completed Articles of Organization are accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of Missouri.

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step 4 /11

Submit Your Certificate of Formation

To create an LLC in Missouri, you will also need to register your business by filing the Articles of Organization form with the Missouri Secretary of State.

Obtain an Employer
Identification Number

Your LLC will need to file with the IRS for an Employer Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. (Note: you do not need an SSN to apply for an EIN, so international applicants are welcome.) Corporations, partnerships, and LLCs require an EIN, while sole proprietors do not. Instead, sole proprietors can use their Social Security Number, but that is not recommended as that exposes you to potential identity theft/fraud. In any case, it is a good idea to obtain one in case the company grows or for banking purposes.

Fortunately, you do not have to waste time dealing with the IRS on your own. Going through the IRS directly to get your EIN can be complicated, confusing, and frustrating. GovDocFiling alleviates the angst and aggravation of filing government documents, including applying for an EIN, or Tax ID number. Plus, GovDocFiling has one low price for same-day processing and delivery of your EIN (other Tax ID filing services charge more than $300 for same-day service!). Easily apply for your EIN/Tax ID online here. In addition, if you have any questions about obtaining an EIN, we offer 24/7 email and phone support to help you through the process. Emails are answered quickly at info@govdocfiling.com.

Once you designate how you prefer to be taxed, that decision must remain in effect for five years before being changed without approval from the IRS.

three
step 5 /11

Obtain an Employer Identification Number

Your LLC will need to file with the IRS for an Employer Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer.

Fill Out an Operating
Agreement

Once you’ve decided on member roles within your LLC, it is time to create a business contract that holds members to their assigned responsibilities. An LLC Operating Agreement in Missouri is a legal document that determines the financial and working relationships among business owners, members, and managers. Member duties would be explained and “what if” scenarios would be covered (such as what happens if a member leaves the LLC).

If you do not have an Operating Agreement set up for your business, when something unforeseeable happens, it will be up to the state to decide how to proceed justly, and this may not be what you want. The State of Missouri recognizes Operating Agreements as governing documents, assigning the roles of each member, who manages the LLC, how members are admitted/removed, dissolution of the LLC, and more.

Missouri is one of the few states where an Operating Agreement is one of the Missouri LLC requirements. You may be buried with Missouri LLC paperwork, but the Operating Agreement form is important to have in order to protect your business. The rules are lax though--the Agreement can be oral or written, and it is not filed with the Missouri Secretary of State. It must discuss how the business is conducted, as well as the rights, powers, and duties of the members, managers, etc, Once it is agreed upon, it must be kept with the company’s records, along with any future amendments. You can have a lawyer look over your Operating Agreement prior to submitting it. Get the legal advice you need to protect yourself with our partner, Rocket Lawyer. company is responsible for maintaining copies of the Operating Agreement.

six
step 6 /11

Fill Out an Operating Agreement

Once you’ve decided on member roles within your LLC, it is time to create a business contract that holds members to their assigned responsibilities. An LLC Operating Agreement in Missouri is a legal document that determines the financial and working relationships among business owners, members, and managers.

Familiarize Yourself with the
State’s Taxes and Permits

First off, Missouri has one of the best tax structures in the nation that benefit any LLC owner. While some states charge an LLC an extra tax for being permitted to do business in their state, Missouri does not. As a result, the corporate tax bill for LLCs doing business in Missouri is typically lower than that of other states.

The Missouri Department of Revenue determines the amount of tax an LLC owes based on all income (using a percentage of the net taxable income) earned by the Missouri LLC. As an LLC is considered a "pass-through" tax entity, federal taxes pass through the LLC and becomes the responsibility of each individual LLC member. Missouri has a progressive income tax with rates that range from 1.5% to 5.9%

There are also other various taxes. For example, Missouri has a sales and use tax rate of 4.225%, but this can change depending on local municipalities. The total tax rate can increase to 10.1%. The Missouri Department of Revenue has additional tax information.

In addition to taxes, there may be extra fees for certain insurances, permits, and licenses. For example, you may need worker’s compensation insurance or a building permit, depending on the state’s laws and the type of business you own. Find out the requirements for LLCs in the state you plan to run your business in. Keep in mind that different cities or counties may require certain permits and licenses that other regions do not. For example, licenses for businesses in the city of St. Louis can be found here. Contact your city or county to see if there are any insurances, permits, or licenses you might need to obtain before you begin operating your business.

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Familiarize Yourself with the State’s Taxes and Permits

Income from pass-through entities such as Missouri Limited Liability Companies and Missouri S corps “pass through” the business to the owners, who are required to report this information on their personal tax returns.

Keep Track of Your Financials

In Missouri, no annual report is necessary for LLCs.

Nevertheless, for your own records, you may want to track all gross receipts, dividends, interest, losses, and Missouri filing fees, and you should seek the help of an accountant to ensure that is taken care of. Our partner, Bench, will provide you with a team of accountants to help you with your franchise tax reports, as well as general bookkeeping services with monthly financial statements and intuitive software to monitor your business profits and expenses.

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step 8 /11

Keep Track of Your Financials

In Missouri, no annual report is necessary for LLCs.

Raise Funds for Your LLC

You can’t start a business with zero capital. There are legal fees, document filing fees, taxes, employees to pay if you are not an SMLLC, as well as the costs of operating a business. Some of the most commonly-used options for obtaining funding for your LLC are:

  • Personal savings and assets
  • Informal loans from family and friends
  • Peer-to-peer lending sites or crowdfunding
  • Conventional bank loan
  • Short-term credit card loans
  • Government-sponsored grants/loan programs
  • Adding LLC owners
saving_assets

Personal Saving/Assets

Use your own savings, liquidate your assets, refinance your home, borrow your Roth IRA, etc.

informal

Informal Loans From Family/Friends

Ask friends or family members if they would be willing to invest in your business.

pear_to_pear

Peer-to-Peer Landing Sites

LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

convertional

Conventional Bank Loan

LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

Many new LLC owners begin with their savings to fund their new business venture. If your savings are not enough, you may need to look into liquidating your personal assets or use them as collateral for loans. Can you sell your property or refinance your home? Do you have a retirement account such as a Traditional or Roth IRA? Usually, you can withdraw contributions you made to your IRA anytime, tax- and penalty-free, but that is not always the case. Find out what kind of fees your particular retirement plan will hit you with before using your IRA to fund your business.

Next, look into whether you know someone who shares your passion for your business and has the ability to contribute financially to your dream. These personal connections may want to support your startup idea. Although accepting an informal loan from a close friend or relative may feel safe, you should still protect yourself in case your relationship with the friend or family member goes sour. Have an official contract drawn up that all parties agree to. You can choose to have it notarized and have witnesses present for extra protection.

If you prefer not to borrow from friends and family, you can turn to a peer-to-peer (P2P) or social lending website. A P2P site is a place where investors seek out alternative opportunities to invest outside of stocks and bonds. You can apply for a loan and investors can decide whether or not they wish to fund your proposed business through interest-based loans. You can also look into crowdfunding, which is a way for small businesses or startups to raise money online through donations. These options typically require the ability to promote your business well, ensure complete transparency of where the funds go, and sometimes, the possibility of giving up ownership of a piece of your business. Make sure you look into all of the specifics.

You might be hoping to rely on a conventional loan from a bank, credit union or other lending institution for your main source of funds. In this case, you would need a formal business plan to present during your loan application process. If approved, you would be required to sign a legal contract, or a Promissory Note, outlining your obligations to the lender (which would primarily entail regular payments until the loan is paid off). If you are a first-time business owner, it is likely that you may be rejected initially. In that case, you can improve your application and reapply, or look into alternative sources of funding such as short-term financing via credit cards.

Using a credit card as a means of obtaining a fast and easy business loan would grant you use of immediate funds without the hassle and paperwork of loan applications or business plans. This is the best option for a brand new business, and we work with Nav to give our customers access to the credit they need. Visit our financing page and fill out the form for more information.

There are many credit cards that have low or no annual fees, low introductory interest rates, and other rewards depending on your spending. But be careful: make sure you pay back your credit card before the promotional low interest rate expires and skyrockets, or prior to having to pay large annual fees. And don’t make large purchases that can take years to pay back. For example, getting an equipment loan to purchase a piece of equipment is smarter than putting it on a credit card. Credit cards can be a good temporary solution if your business plan will allow you to pay back the debt quickly.

Another option at your disposal is a government-sponsored grant or loan program. Traditional lenders can turn to federal, state, or local governments to finance their business if such a grant or program is available. Typically, these programs consider sponsoring specific type of businesses or certain business owners, so be sure to research what government-sponsored loan your particular business or you might be eligible for.

Lastly, you can invite new members to your team. If you could see your businesses strategy succeeding with a partner or multiple partners, pool together your financial resources with another member to support your startup. An advantage to this funding option is your partner(s) may come with their own social network of business contacts and possibly even their own potential investors. To protect yourself, you can adjust your Operating Agreement and ensure that you are still the primary owner of the LLC.

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step 9 /11

Raise Funds for Your LLC

You can’t start a business with zero capital. There are legal fees, document filing fees, taxes, employees to pay if you are not an SMLLC, as well as the costs of operating a business.

Create a Business Website

Creating a website for your Missouri business is not a requirement but it is recommended to any business owner operating in the modern world. An online presence is important to have and maintain in order to ensure that your customers trust your company and know they will receive good customer service. Having a website gives your business legitimacy; your customers will visit your website and see that you are a real company with an actual website where they can read about the company’s origin and products/services and access contact information. Being able to read up on a company on their website leads to trust between a consumer and an organization. Also, dependable customer service is often offered through a website. By offering an email address, a contact form, and/or live chat with a representative on your website, you are making it easy for a customer to get connected with someone knowledgeable about the product/service. That allows a customer to know that there is a real person who cares about their satisfaction within the company that they are doing business with.

Start LLC formation

If the website is outdated or there is no website, a consumer may feel that you are not a legitimate business but a scam with no licenses to back up your business’ operations. You can avoid losing customers due to not having a professional website by ensuring that you have one. We work with GoNorth Websites to provide new businesses with high quality, cost-effective websites. Find out more about our custom designed, written, and developed websites, plus optional internet marketing add-ons that help you grow your business.

But websites needs maintenance too. You can’t simply have one created and never update it throughout the years. Policies and terms change, companies grow, products/services improve, and all of that (and more) can be reflected on the website. This keeps your customers up-to-date and offers a personal touch that is valued by any consumer.

In addition, you can look into having a blog or utilizing social media as another means of keeping your customers in-the-know and offering them a way to interact with your company. An online and/or social media presence can also lead to responsive customers who can offer you feedback on how you’re doing—plus, it’ll help get your company’s name out there.

If this all sounds like more than you’d like to deal with on your own, know that you can hire someone to maintain your website and social media presence for you—just like you can hire customer representatives to handle all correspondence. You can employ a web agency to monitor your website and/or a social media marketing agency to manage your social media campaign. A social media campaign is a coordinated marketing plan that can assist you with your business goals, which translates into extra advertising for your new business. Marketing your company can help you have a more profitable business and can aid you with paying back your business loans quicker—something any business owner aims for. Regardless of industry, all businesses should consider having a website as part of the first steps of starting a business.

T The Benefits of Having an Online Presence
benefis_hand
You will show your customers that you are a legitimate business and build trust.
benefis_message
Your company will be easy to correspond with and you can provide good, responsive customer service.
benefis_calendar
Your customers will be kept up-to-date on all exciting news related to your business.

If you’ve decided that you want to have a website for your business, keep a few things in mind. When coming up with a website name, make sure that the domain contains your business name and is easy to type and remember for future visits. If you come up with a great web domain that you’d like to use for your business but you don’t plan to create a business website today, you may want to buy the URL to prevent others from acquiring it.

While brainstorming website URLs for your website, you’re going to either realize that you already know what your business is going to be named or that you have no idea what or how to name your business. Here are a few quick Missouri LLC name tips:

  • Follow LLC naming guidelines. Make sure that the name of your business ends with the phrase “Limited Liability Company” or the abbreviation “LLC.” It’s also important not to use any words or phrases that will make it easy for someone to mistake your company for a federal agency; think “State Department.”
  • Find a unique name. If you’re creating an LLC in the State of Missouri, you will need an original name that is not in use by another LLC. To check if a name has already been taken, you can search the Missouri Business Name Database.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of Missouri has a business with the same name. In that case, think of something more original.
liability
Decreased Liability
An LLC separates your personal assets from any business decisions made or actions undertaken by the LLC.
keeping
Reduced Record Keeping
When compared to a corporation structure, an LLC has less registration paperwork and startup expenses.
profit
Sharing of Profits
LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.
ten
step 10 /11

Create a Business Website

Creating a website for your Missouri business is not a requirement but it is recommended to any business owner operating in the modern world.

Begin Operating Your Business

Once you become a Missouri LLC, make sure you keep your LLC compliant. Remember to file all necessary reports and keep up with all tax payments. If you’d rather not do these tasks yourself, you can sign up for a service that will automatically send you alerts ahead of crucial state and federal filing deadlines. Likewise, you can hire an accountant, a tax professional, and/or an attorney to ensure you are not making errors when keeping records, filling out paperwork, and making payments.

Next, make sure you’ve obtained all necessary licenses and obtained any extra insurance that your LLC might need—and you’re good to go! Register for an LLC in Missouri online with GovDocFiling and begin operating your business in MO with peace of mind, knowing that you are protected by an LLC in case anything unforeseeable affects your new business venture.

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step 11 /11

Begin Operating Your Business

Once you become a Missouri LLC, make sure you keep your LLC compliant. Remember to file all necessary reports and keep up with all tax payments. If you’d rather not do these tasks yourself, you can sign up for a service that will automatically send you alerts ahead of crucial state and federal filing deadlines.


Mississippi - LLC

Learn the Benefits of an LLC

There are many benefits to setting up an LLC in MN. LLCs not only have more tax options, but they also offer decreased liability, reduced record keeping, and sharing of profits. They are simpler to set up and maintain, with much simpler rules and regulations. There is decidedly less registration paperwork and lower-costing startup expenses. The Mississippi LLC cost is not as high as it is for a Mississippi C-corp or Mississippi S-corp.

gistogram
Decreased Liability
An LLC separates your personal assets from any business decisions made or actions undertaken by the LLC
doc
Reduced Record Keeping
When compared to a corporation structure, an LLC has less registration paperwork and startup expenses
profit
Sharing of Profits
LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

But is an LLC the right business structure for you? Some business types come with suggested business structures. For instance, many small business lawyers recommend you create an LLC in MS for an e-commerce business. Why? With e-commerce businesses, products fall under product liability statutes. This means that anyone involved in the sale and distribution of the product could be held liable—even if the problem lies with the manufacturer. An LLC provides you with limited liability in case you are sued by creating a separate and distinct legal entity and isolating business assets from your assets. Therefore, compensation can only be taken from the LLC’s assets, not your personal assets.

Why is an LLC a good idea for an e-commerce Business?

If there is an issue with a product, an LLC protects you. Compensation can only be taken from the LLC’s assets, not your personal assets.

Start Your LLC Now
transporter

Besides protecting you and your assets, creating an LLC provides a business owner with more options for federal tax purposes.

  • For instance, if an LLC has only one owner, it’s referred to as a single-member LLC or SMLLC.. Owners have the option of being taxed as a Sole Proprietorship, an S Corporation, or a C Corporation.
  • If an LLC has more than one owner, it’s categorized as a multiple-member LLC. Owners have the option of being taxed as a Partnership, an S Corporation, or a C Corporation.

An advantage to having an MS LLC with multiple members is that the members decide how to report profits and losses for tax purposes and have several options as to how they prefer to be taxed.

For federal tax purposes, if you’re the sole member of an LLC, your business is treated as a disregarded entity. This means that although you and your business are separate entities, the SMLLC’s income and expenses are reported on the owner’s personal tax return rather than an SMLLC tax return, and the IRS ignores the SMLLC’s status as a business entity. However, for purposes of employment tax and certain excise taxes, an SMLLC is still considered a separate entity. The way a sole proprietorship is taxed is the IRS’ default option for a single member LLC in Mississippi.

In contrast, a corporation only has two choices: S corporation or C corporation.. A business operated as a sole proprietorship or a partnership also doesn’t have an option as to how it will be taxed.

For those wanting to open an LLC in Mississippi, the best part is the fact that it combines the liability protection of a C Corporation with the tax treatment of any of the above business entities. Plus, it is easier to set up than a corporation.

But Mississippi LLCs have a few disadvantages. If LLC owners do not choose to file for a tax status as a corporation, individual members pay high self-employment taxes. Also, if business owners decide they may want to take the company public and sell stock, a Mississippi LLC does not permit this (unless you file as an S corp in Mississippi). Despite these disadvantages, creating an LLC for your startup business is usually recommended. It is well worth it to protect your personal assets and simplify the process of forming an LLC in Mississippi.

one
step 1 /11

Learn the Benefits of an LLC

For most folks looking to start a business in Mississippi, the best type of company to form is what's known as a Limited Liability Company (LLC). An LLC can:

  • Run a business
  • Hold assets (such as office equipment/real estate)
  • Open a bank account
  • Enter into contracts

Assign Member Roles

Now it’s the time to decide whether you will run this business on your own or with another member’s or organization’s assistance, how small or large you intend for your team to be, and which duties each member will have.

There are two types of LLC management structures:
  • Member-managed LLC - Member-managed LLC - These may consist of single or multiple members. Each member plays an active role in the management and operation of the business and has the authority to make decisions to bind the LLC. This is ideal if the business is small, has limited resources, and all members have management skills.
  • Manager-managed LLC - These may consist of single or multiple members, but members must relinquish the authority to the manager and cannot interfere with the manager's operational decisions. This is ideal if your business is too large or complex to efficiently allow the sharing of management duties among all members, or if some of your members do not have management skills.

Member-managed LLC

All members can make authoritative decisions.

Works best when:

  • business is small
  • has limited resources
  • all members are skilled
manager
manager

Member-managed LLC

Only the manager can make authoritative decisions.

Works best when:

  • business is too large/complex
  • not all members are skilled

If you know your LLC will have employees, you also know that you will have to pay them. Plus, you will need to figure out the amount you should deduct from their wages for tax purposes. Employees will need to fill out a W-4 Form, and you will need to give them pay stubs with their tax information. Before this all gets overwhelming, keep in mind that we offer Payroll, Tax and HR compliance solutions with our partner, ADP.. We make it easy to pay your employees, track time, and file taxes effortlessly. Plus, you and your employees can view and update payroll information via an app--accessible anywhere, anytime, backed by 24/7 live customer service support.

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Assign Member Roles

Now it’s the time to decide whether you will run this business on your own or with another member’s or organization’s assistance, how small or large you intend for your team to be, and which duties each member will have.

Decide on a Registered Agent

Next, figure out who the Registered Agent for the LLC should be. The State of Mississippi requires every LLC in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately. The Registered Agent will also act as the contact point between the Mississippi Secretary of State and the LLC. Once you assign someone as your Registered Agent, they can receive official correspondence and documents on behalf of your business.

A Registered Agent can be either an individual who is a resident of Mississippi or a business entity that is authorized to conduct business in the state (but not your own business). This can be you or someone else within your company, but keep in mind that this person will be through whom the state has contact with your business. This agent will receive legal documents (known as “Service of Process”) that pertain to your business. You are legally required to have one.

Generally speaking, a Registered Agent in Mississippi for an LLC must meet the following requirements:
  • Possess a physical street address located in Mississippi (no P.O. Box address).
  • Be available during regular business hours, typically Monday through Friday, 9 am to 5 pm.

Although the most comfortable option for a Registered Agent would be to name yourself, a friend, or a family member, know that this information will be public record. Not only will the information be searchable on the Secretary of State’s website, it can also be republished on other sites as well. If you work from home and would much rather keep your home address private, this might not be the best choice. An alternative you can look into is hiring a Mississippi Registered Agent LLC Service. We also offer a Registered Agent Service for a small charge that you can include as an add-on to your shopping cart.

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Decide on a Registered Agent

Next, figure out who the Registered Agent for the LLC should be. The State of Mississippi requires every LLC in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately.

Submit Your Certificate
of Organization

As you get ready to apply for an LLC in Mississippi, you will need to register your Mississippi Limited Liability Company by submitting a form called the Certificate of Organization (typically called the Articles of Organization in other states). The Certificate of Organization is filed with the Mississippi Secretary of State. The form includes information such as the LLC's name and address, the Registered Agent’s information, whether the LLC is run by managers or members, etc. If you also have an Operating Agreement written out, you would include a copy of it with the Certificate of Organization. Submitting your Certificate of Organization form in Mississippi is a requirement.

When filing your Mississippi LLC application, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of Mississippi LLC forms, and long wait times whether in person or by mail--especially if you’re filing for an LLC in Mississippi during peak season. GovDocFiling can speed up the process for you. We offer an easy online application, expedited pricing, and a free business start-up guide and resources with all filings. You can apply here today.

Once your completed Mississippi LLC Certificate of Organization form is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of Mississippi.

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Submit Your Certificate of Organization

As you get ready to apply for an LLC in Mississippi, you will need to register your Mississippi Limited Liability Company by submitting a form called the Certificate of Organization (typically called the Articles of Organization in other states).

Obtain an Employer
Identification Number

One of the Mississippi LLC tax filing requirements is getting an EIN. Your LLC will need to file with the IRS for an Employer Identification Number (EIN), which is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. (Note: you do not need an SSN to apply for an EIN, so international applicants are welcome.) Corporations, partnerships, and LLCs require an EIN, while sole proprietors do not. Instead, sole proprietors can use their Social Security Number, but that is not recommended as that exposes you to potential identity theft/fraud. In any case, it is a good idea to obtain one in case the company grows or for banking purposes.

Fortunately, you do not have to waste time dealing with the IRS on your own. Going through the IRS directly to get your EIN can be complicated, confusing, and frustrating. GovDocFiling alleviates the angst and aggravation of Mississippi business filing with the government, including applying for an EIN, or Tax ID number. Plus, GovDocFiling has one low price for same-day processing and delivery of your EIN (other Tax ID filing services charge more than $300 for same-day service!). Easily apply for your EIN/Tax ID online here. In addition, if you have any questions about obtaining an EIN, we offer 24/7 email and phone support to help you through the process. Emails are answered quickly at info@govdocfiling.com.

Once you designate how you prefer to be taxed, that decision must remain in effect for five years before being changed without approval from the IRS.

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Obtain an Employer Identification Number

One of the Mississippi LLC tax filing requirements is getting an EIN. Your LLC will need to file with the IRS for an Employer Identification Number (EIN), which is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer.

Fill Out an Operating
Agreement

Once you’ve decided on member roles within your LLC, it is time to create a business contract that holds members to their assigned responsibilities. An LLC Operating Agreement in Mississippi is a legal document that determines the financial and working relationships among business owners, members, and managers. Member duties would be explained and “what if” scenarios would be covered (such as what happens if a member leaves the LLC). If you do not have an Operating Agreement set up for your business, when something unforeseeable happens, it will be up to the state to decide how to proceed justly, and this may not be what you want.

While it is not a necessary part of a Mississippi LLC registration to have an Operating Agreement, it is still extremely important to have one in order to protect your business. You can have a lawyer look over your Mississippi LLC Operating Agreement form prior to submitting it. Get the legal advice you need to protect you and familiarize yourself with Mississippi LLC law with our partner, Rocket Lawyer. Your company is responsible for maintaining copies of the Operating Agreement.

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Fill Out an Operating Agreement

Once you’ve decided on member roles within your LLC, it is time to create a business contract that holds members to their assigned responsibilities. An LLC Operating Agreement in Mississippi is a legal document that determines the financial and working relationships among business owners, members, and managers.

Familiarize Yourself with the
State’s Taxes and Licenses

Income from pass-through entities such as Mississippi Limited Liability Companies and Mississippi S corps “pass through” the business to the owners, who are required to report this information on their personal tax returns. Each individual LLC member will then have to pay taxes on his or her share of the LLC’s income. The LLC itself does not pay federal income taxes, but some states do charge the LLC other various taxes. For example, employers owe payroll tax on employees wages. Additionally, Mississippi has a sales and use tax, plus others. More information on these various taxes can be found here. The State of Mississippi has a graduated tax rate of three tax brackets--3%, 4% and 5%. More information on these rates can be found here.

Like most other states, Mississippi taxes corporation income, which will apply to you if your LLC is classified as a corporation. In this case, Mississippi would treat the LLC as a corporation when it comes to taxes and the company itself must file a separate tax return. The LLC would be required to pay Mississippi’s corporate income tax and corporate franchise tax. Questions about the corporate income tax and corporate franchise tax are answered on the Department of Revenue in the State of Mississippi website.

In addition, there may be extra fees for certain insurances, permits, and licenses, depending on the state’s laws and the type of business you own. For example, you may need worker’s compensation, unemployment insurance, building permits, etc. Some common licenses can be found on the Mississippi Small Business Development Center website. Most cities/counties in Mississippi require their own licences and permits. Find out what the requirements are for the location where you plan to open your business. Contact your city or county to see if there are any insurances, permits, or licenses you might need to obtain before you begin operating your business.

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Familiarize Yourself with the State’s Taxes and Licenses

Income from pass-through entities such as Mississippi Limited Liability Companies and Mississippi S corps “pass through” the business to the owners, who are required to report this information on their personal tax returns.

File an Annual Report

Like most states, the State of Mississippi requires all LLC owners to file a yearly report that updates all the information that the Mississippi Secretary of State has on file. This report is called the Annual Report, and it can be filed any time on or after January 1 and is due by April 15. All annual reports must be filed online. Online filing is available on the Mississippi Secretary of State website, after you create an account. Filing an Annual Report is necessary for maintaining an active status after starting an LLC in Mississippi. Not filing the report or paying the fee will result in being presented a Mississippi LLC dissolution form, after which the state will dissolve your business. $23.25

Good news for prospective LLC owners in Mississippi: while some states charge over $500 as a required fee that all LLC owners must pay when submitting their Annual Reports, Mississippi does not have a required fee for LLC owners. Corporations are treated differently and do require a fee.

The report can be rather complex–requiring the deciphering of gross receipts, dividends, interest, losses, and all Mississippi LLC fees–and you should seek the help of an accountant to ensure that it is filled out properly. Our partner, Bench, will provide you with a team of accountants to help you with your franchise tax reports, as well as general bookkeeping services with monthly financial statements and intuitive software to monitor your business profits and expenses.

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File an Annual Report

Like most states, the State of Mississippi requires all LLC owners to file a yearly report that updates all the information that the Mississippi Secretary of State has on file.

Raise Funds for Your LLC

You can’t start a business with zero capital. There are legal fees, the Mississippi LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC in Mississippi cost of operating a business. Some of the most commonly-used options for obtaining funding for your LLC are:

  • Personal savings and assets
  • Informal loans from family and friends
  • Peer-to-peer lending sites or crowdfunding
  • Conventional bank loan
  • Short-term credit card loans
  • Government-sponsored grants/loan programs
  • Adding LLC owners
saving_assets

Personal Saving/Assets

Use your own savings, liquidate your assets, refinance your home, borrow your Roth IRA, etc.

informal

Informal Loans From Family/Friends

Ask friends or family members if they would be willing to invest in your business.

pear_to_pear

Peer-to-Peer Landing Sites

LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

convertional

Conventional Bank Loan

LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

Many new LLC owners begin with their savings to fund their new business venture. If your savings are not enough, you may need to look into liquidating your personal assets or use them as collateral for loans. Can you sell your property or refinance your home? Do you have a retirement account such as a Traditional or Roth IRA? Usually, you can withdraw contributions you made to your IRA anytime, tax- and penalty-free, but that is not always the case. Find out what kind of fees your particular retirement plan will hit you with before using your IRA to fund your business.

Next, look into whether you know someone who shares your passion for your business and has the ability to contribute financially to your dream. These personal connections may want to support your startup idea. Although accepting an informal loan from a close friend or relative may feel safe, you should still protect yourself in case your relationship with the friend or family member goes sour. Have an official contract drawn up that all parties agree to. You can choose to have it notarized and have witnesses present for extra protection.

If you prefer not to borrow from friends and family, you can turn to a peer-to-peer (P2P) or social lending website. A P2P site is a place where investors seek out alternative opportunities to invest outside of stocks and bonds. You can apply for a loan and investors can decide whether or not they wish to fund your proposed business through interest-based loans. You can also look into crowdfunding, which is a way for small businesses or startups to raise money online through donations. These options typically require the ability to promote your business well, ensure complete transparency of where the funds go, and sometimes, the possibility of giving up ownership of a piece of your business. Make sure you look into all of the specifics.

You might be hoping to rely on a conventional loan from a bank, credit union or other lending institution for your main source of funds. In this case, you would need a formal business plan to present during your loan application process. If approved, you would be required to sign a legal contract, or a Promissory Note, outlining your obligations to the lender (which would primarily entail regular payments until the loan is paid off). If you are a first-time business owner, it is likely that you may be rejected initially. In that case, you can improve your application and reapply, or look into alternative sources of funding such as short-term financing via credit cards.

Using a credit card as a means of obtaining a fast and easy business loan would grant you use of immediate funds without the hassle and paperwork of loan applications or business plans. This is the best option for a brand new business, and we work with Nav to give our customers access to the credit they need. Visit our financing page and fill out the form for more information.

There are many credit cards that have low or no annual fees, low introductory interest rates, and other rewards depending on your spending. But be careful: make sure you pay back your credit card before the promotional low interest rate expires and skyrockets, or prior to having to pay large annual fees. And don’t make large purchases that can take years to pay back. For example, getting an equipment loan to purchase a piece of equipment is smarter than putting it on a credit card. Credit cards can be a good temporary solution if your business plan will allow you to pay back the debt quickly.

Another option at your disposal is a government-sponsored grant or loan program. Traditional lenders can turn to federal, state, or local governments to finance their business if such a grant or program is available. Typically, these programs consider sponsoring specific type of businesses or certain business owners, so be sure to research what government-sponsored loan your particular business or you might be eligible for.

Lastly, you can invite new members to your team. If you could see your businesses strategy succeeding with a partner or multiple partners, pool together your financial resources with another member to support your startup. An advantage to this funding option is your partner(s) may come with their own social network of business contacts and possibly even their own potential investors. To protect yourself, you can adjust your Operating Agreement and ensure that you are still the primary owner of the LLC.

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Raise Funds for Your LLC

You can’t start a business with zero capital. There are legal fees, the Mississippi LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC in Mississippi cost of operating a business.

Create a Business Website

Creating a website for your business is not a requirement but it is recommended to any business owner operating in the modern world. An online presence is important to have and maintain in order to ensure that your customers trust your company and know they will receive good customer service. Having a website gives your business legitimacy; your customers will visit your website and see that you are a real company with an actual website where they can read about the company’s origin and products/services and access contact information. Being able to read up on a company on their website leads to trust between a consumer and an organization. Also, dependable customer service is often offered through a website. By offering an email address, a contact form, and/or live chat with a representative on your website, you are making it easy for a customer to get connected with someone knowledgeable about the product/service. That allows a customer to know that there is a real person who cares about their satisfaction within the company that they are doing business with.

Start LLC formation

If the website is outdated or there is no website, a consumer may feel that you are not a legitimate business but a scam with no licenses to back up your business’ operations. You can avoid losing customers due to not having a professional website by ensuring that you have one. We work with GoNorth Websites to provide new businesses with high quality, cost-effective websites. Find out more about our custom designed, written, and developed websites, plus optional internet marketing add-ons that help you grow your business.

But websites needs maintenance too. You can’t simply have one created and never update it throughout the years. Policies and terms change, companies grow, products/services improve, and all of that (and more) can be reflected on the website. This keeps your customers up-to-date and offers a personal touch that is valued by any consumer.

In addition, you can look into having a blog or utilizing social media as another means of keeping your customers in-the-know and offering them a way to interact with your company. An online and/or social media presence can also lead to responsive customers who can offer you feedback on how you’re doing—plus, it’ll help get your company’s name out there.

If this all sounds like more than you’d like to deal with on your own, know that you can hire someone to maintain your website and social media presence for you—just like you can hire customer representatives to handle all correspondence. You can employ a web agency to monitor your website and/or a social media marketing agency to manage your social media campaign. A social media campaign is a coordinated marketing plan that can assist you with your business goals, which translates into extra advertising for your new business. Marketing your company can help you have a more profitable business and can aid you with paying back your business loans quicker—something any business owner aims for. Regardless of industry, all businesses should consider having a website as part of the first steps of starting a business.

T The Benefits of Having an Online Presence
benefis_hand
You will show your customers that you are a legitimate business and build trust.
benefis_message
Your company will be easy to correspond with and you can provide good, responsive customer service.
benefis_calendar
Your customers will be kept up-to-date on all exciting news related to your business.

If you’ve decided that you want to have a website for your business, keep a few things in mind. When coming up with a website name, make sure that the domain contains your business name and is easy to type and remember for future visits. If you come up with a great web domain that you’d like to use for your business but you don’t plan to create a business website today, you may want to buy the URL to prevent others from acquiring it.

While brainstorming website URLs for your website, you’re going to either realize that you already know what your business is going to be named or that you have no idea what or how to name your business. Here are a few quick Mississippi LLC name tips:

  • Follow LLC naming guidelines. Make sure that the name of your business ends with the phrase “Limited Liability Company” or the abbreviation “LLC.” It’s also important not to use any words or phrases that will make it easy for someone to mistake your company for a federal agency; think “State Department.”
  • Find a unique name. If you’re getting an LLC in Mississippi you will need an original name that is not in use by another LLC. To check if a name has already been taken, you can search the Business Name Search Database.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of Mississippi has a business with the same name. In that case, think of something more original.
liability
Decreased Liability
An LLC separates your personal assets from any business decisions made or actions undertaken by the LLC.
keeping
Reduced Record Keeping
When compared to a corporation structure, an LLC has less registration paperwork and startup expenses.
profit
Sharing of Profits
LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.
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Create a Business Website

Creating a website for your business is not a requirement but it is recommended to any business owner operating in the modern world.

Begin Operating Your Business

Once you complete your Mississippi LLC formation, make sure to keep your LLC compliant. To do so, keep track of all important dates, such as those for filing annual documents and license/permit renewals, and pay all necessary Mississippi LLC fees. If you’d rather not do these tasks yourself, you can sign up for a service that will automatically send you alerts ahead of crucial state and federal filing deadlines. Likewise, you can hire an accountant, a tax professional, and/or an attorney to ensure you are not making errors when keeping records, filling out paperwork, and making payments.

You can begin operating your business in Mississippi with peace of mind, knowing that you are protected by an LLC in case anything unforeseeable affects your new business venture.

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Begin Operating Your Business

Once you complete your Mississippi LLC formation, make sure to keep your LLC compliant. To do so, keep track of all important dates, such as those for filing annual documents and license/permit renewals, and pay all necessary Mississippi LLC fees.


Minnesota - LLC

Learn the Benefits of an LLC

There are many benefits to setting up an LLC in MN. LLCs not only have more tax options, but they also offer decreased liability, reduced record keeping, and sharing of profits. They are simpler to set up and maintain, with much simpler rules and regulations. There is decidedly less registration paperwork and lower-costing startup expenses. The Minnesota LLC cost is not as high as it is for a Minnesota C-corp or Minnesota S-corp.

gistogram
Decreased Liability
An LLC separates your personal assets from any business decisions made or actions undertaken by the LLC
doc
Reduced Record Keeping
When compared to a corporation structure, an LLC has less registration paperwork and startup expenses
profit
Sharing of Profits
LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

But is an LLC the right business structure for you? Some business types come with suggested business structures. For instance, many small business lawyers recommend you create an LLC in MN for an e-commerce business. Why? With e-commerce businesses, products fall under product liability statutes. This means that anyone involved in the sale and distribution of the product could be held liable—even if the problem lies with the manufacturer. An LLC provides you with limited liability in case you are sued by creating a separate and distinct legal entity and isolating business assets from your assets. Therefore, compensation can only be taken from the LLC’s assets, not your personal assets.

Why is an LLC a good idea for an e-commerce Business?

If there is an issue with a product, an LLC protects you. Compensation can only be taken from the LLC’s assets, not your personal assets.

Start Your LLC Now
transporter

Besides protecting you and your assets, creating an LLC provides a business owner with more options for federal tax purposes.

  • For instance, if an LLC has only one owner, it’s referred to as a single-member LLC or SMLLC.. Owners have the option of being taxed as a Sole Proprietorship, an S Corporation, or a C Corporation.
  • If an LLC has more than one owner, it’s categorized as a multiple-member LLC. Owners have the option of being taxed as a Partnership, an S Corporation, or a C Corporation.

An advantage to having an MN LLC with multiple members is that the members decide how to report profits and losses for tax purposes and have several options as to how they prefer to be taxed.

For federal tax purposes, if you’re the sole member of an LLC, your business is treated as a disregarded entity. This means that although you and your business are separate entities, the SMLLC’s income and expenses are reported on the owner’s personal tax return rather than an SMLLC tax return, and the IRS ignores the SMLLC’s status as a business entity. However, for purposes of employment tax and certain excise taxes, an SMLLC is still considered a separate entity. The way a sole proprietorship is taxed is the IRS’ default option for a single member LLC in Minnesota.

In contrast, a corporation only has two choices: S corporation or C corporation.. A business operated as a sole proprietorship or a partnership also doesn’t have an option as to how it will be taxed.

For those wanting to open an LLC in Minnesota, the best part is the fact that it combines the liability protection of a C Corporation with the tax treatment of any of the above business entities. Plus, it is easier to set up than a corporation

But Minnesota LLCs have a few disadvantages. If LLC owners do not choose to file for a tax status as a corporation, individual members pay high self-employment taxes. Also, if business owners decide they may want to take the company public and sell stock, a Minnesota LLC does not permit this (unless you file as an S corp in Minnesota). Despite these disadvantages, creating an LLC for your startup business is usually recommended. It is well worth it to protect your personal assets and simplify the process of forming an LLC in Minnesota.

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Learn the Benefits of an LLC

For most folks looking to start a business in Minnesota, the best type of company to form is what's known as a Limited Liability Company (LLC). An LLC can:

  • Run a business
  • Hold assets (such as office equipment/real estate)
  • Open a bank account
  • Enter into contracts

Assign Member Roles

Now it’s the time to decide whether you will run this business on your own or with another member’s or organization’s assistance, how small or large you intend for your team to be, and which duties each member will have.

There are two types of LLC management structures:
  • Member-managed LLC - Member-managed LLC - These may consist of single or multiple members. Each member plays an active role in the management and operation of the business and has the authority to make decisions to bind the LLC. This is ideal if the business is small, has limited resources, and all members have management skills.
  • Manager-managed LLC - These may consist of single or multiple members, but members must relinquish the authority to the manager and cannot interfere with the manager's operational decisions. This is ideal if your business is too large or complex to efficiently allow the sharing of management duties among all members, or if some of your members do not have management skills.

Member-managed LLC

All members can make authoritative decisions.

Works best when:

  • business is small
  • has limited resources
  • all members are skilled
manager
manager

Member-managed LLC

Only the manager can make authoritative decisions.

Works best when:

  • business is too large/complex
  • not all members are skilled

If you know your Minnesota LLC will have employees, you also know that you will have to pay them. Plus, you will need to figure out the amount you should deduct from their wages for tax purposes. Employees will need to fill out a W-4 Form, and you will need to give them pay stubs with their tax information. Before this all gets overwhelming, keep in mind that we offer Payroll, Tax and HR compliance solutions with our partner, ADP.. We make it easy to pay your employees, track time, and file taxes effortlessly. Plus, you and your employees can view and update payroll information via an app--accessible anywhere, anytime, backed by 24/7 live customer service support.

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Assign Member Roles

Now it’s the time to decide whether you will run this business on your own or with another member’s or organization’s assistance, how small or large you intend for your team to be, and which duties each member will have.

Decide on a Registered Agent

Next, figure out who the Registered Agent for the LLC should be. The State of Minnesota requires every LLC in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately. The Registered Agent will also act as the contact point between the Minnesota Secretary of State and the LLC. Once you assign someone as your Registered Agent, they can receive official correspondence and documents on behalf of your business.

A Registered Agent can be either an individual who is a resident of Minnesota or a business entity that is authorized to conduct business in the state (but not your own business). This can be you or someone else within your company, but keep in mind that this person will be through whom the state has contact with your business. This agent will receive legal documents (known as “Service of Process”) that pertain to your business. You are legally required to have one.

Generally speaking, a Registered Agent in Minnesota for an LLC must meet the following requirements:
  • Possess a physical street address located in Minnesota (no P.O. Box address).
  • Be available during regular business hours, typically Monday through Friday, 9 am to 5 pm.

Although the most comfortable option for a Registered Agent would be to name yourself, a friend, or a family member, know that this information will be public record. Not only will the information be searchable on the state’s LLC website, it can also be republished on other sites as well. If you work from home and would much rather keep your home address private, this might not be the best choice. An alternative you can look into is hiring a Minnesota Registered Agent LLC Service. We also offer a Registered Agent Service for a small charge that you can include as an add-on to your shopping cart.

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Decide on a Registered Agent

Next, figure out who the Registered Agent for the LLC should be. The State of Minnesota requires every LLC in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately.

Submit Your Articles
of Organization

As you get ready to apply for an LLC in Minnesota, you will need to register your Minnesota Limited Liability Company by submitting a form called the Articles of Organization. The Articles of Organization are filed with the Minnesota Secretary of State. The form includes information such as the LLC's name and address, the Registered Agent’s information, whether the LLC is run by managers or members, etc. If you also have an Operating Agreement written out, you would include a copy of it with the Articles of Organization. Submitting your Articles of Organization form in Minnesota is a requirement.

When filing your Minnesota LLC application, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of Minnesota LLC forms, and long wait times whether in person or by mail--especially if you happen to register an LLC in MN during peak season. GovDocFiling can speed up the process for you. We offer an easy online application, expedited pricing, and a free business start-up guide and resources with all filings. You can apply here today.

Once your completed Minnesota LLC Articles of Organization form is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of Minnesota.

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Submit Your Articles of Organization

As you get ready to apply for an LLC in Minnesota, you will need to register your Minnesota Limited Liability Company by submitting a form called the Articles of Organization.

Obtain an Employer
Identification Number

One of the Minnesota LLC tax filing requirements is getting an EIN. Your LLC will need to file with the IRS for an Employer Identification Number (EIN), which is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. (Note: you do not need an SSN to apply for an EIN, so international applicants are welcome.) Corporations, partnerships, and LLCs require an EIN, while sole proprietors do not. Instead, sole proprietors can use their Social Security Number, but that is not recommended as that exposes you to potential identity theft/fraud. In any case, it is a good idea to obtain one in case the company grows or for banking purposes.

Fortunately, you do not have to waste time dealing with the IRS on your own. Going through the IRS directly to get your EIN can be complicated, confusing, and frustrating. GovDocFiling alleviates the angst and aggravation of Minnesota business filing with the government, including applying for an EIN, or Tax ID number. Plus, GovDocFiling has one low price for same-day processing and delivery of your EIN (other Tax ID filing services charge more than $300 for same-day service!). Easily apply for your EIN/Tax ID online here. In addition, if you have any questions about obtaining an EIN, we offer 24/7 email and phone support to help you through the process. Emails are answered quickly at info@govdocfiling.com.

Once you designate how you prefer to be taxed, that decision must remain in effect for five years before being changed without approval from the IRS.

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Obtain an Employer Identification Number

One of the Minnesota LLC tax filing requirements is getting an EIN. Your LLC will need to file with the IRS for an Employer Identification Number (EIN), which is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer.

Fill Out an Operating
Agreement

Once you’ve decided on member roles within your LLC, it is time to create a business contract that holds members to their assigned responsibilities. An LLC Operating Agreement in Minnesota is a legal document that determines the financial and working relationships among business owners, members, and managers. Member duties would be explained and “what if” scenarios would be covered (such as what happens if a member leaves the LLC). If you do not have an Operating Agreement set up for your business, when something unforeseeable happens, it will be up to the state to decide how to proceed justly, and this may not be what you want.

While it is not a necessary part of a Minnesota LLC registration to have an Operating Agreement, it is still extremely important to have one in order to protect your business. You can have a lawyer look over your Minnesota LLC Operating Agreement form prior to submitting it. Get the legal advice you need to protect you and familiarize yourself with Minnesota LLC law with our partner, Rocket Lawyer. Your company is responsible for maintaining copies of the Operating Agreement.

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Fill Out an Operating Agreement

Once you’ve decided on member roles within your LLC, it is time to create a business contract that holds members to their assigned responsibilities. An LLC Operating Agreement in Minnesota is a legal document that determines the financial and working relationships among business owners, members, and managers.

Familiarize Yourself with the
State’s Taxes and Licenses

Income from pass-through entities such as Minnesota Limited Liability Companies and Minnesota S corps “pass through” the business to the owners, who are required to report this information on their personal tax returns. Each individual LLC member will then have to pay taxes on his or her share of the LLC’s income. The LLC itself does not pay federal income taxes, but some states do charge the LLC other various taxes. For example, employers owe payroll tax on employees wages. Additionally, Minnesota has a sales and use tax, as well as other taxes. More information can be found on the Minnesota Department of Revenue website. Minnesota has an income tax with four different rates. Details can be found here.

Like most other states, Minnesota taxes corporation income, which will apply to you if your LLC is classified as a C corporation. In this case, Minnesota would treat the LLC as a corporation when it comes to taxes. Therefore, if your State of Minnesota LLC files taxes as a corporation, the company itself must file a separate tax return. If your Minnesota LLC is taxed as a corporation, it will need to pay income taxes or fees to the state. Minnesota has a flat corporate income tax rate of 9.800% of gross income, the 3rd highest in the United States. The LLC would also be required to pay Minnesota’s corporate franchise tax.The corporate franchise tax rate information can be found here.

In addition, there may be extra fees for certain insurances, permits, and licenses, depending on the state’s laws and the type of business you own. For example, you may need worker’s compensation, unemployment insurance, building permits, etc. Most cities/counties in Minnesota require their own licences and permits. A detailed breakdown of certain specific local licenses and permits can be found on the Minnesota Employment and Economic Development website. Find out what the requirements are for the location where you plan to open your business. Contact your city or county to see if there are any insurances, permits, or licenses you might need to obtain before you begin operating your business.

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Familiarize Yourself with the State’s Taxes and Licenses

Income from pass-through entities such as Minnesota Limited Liability Companies and Minnesota S corps “pass through” the business to the owners, who are required to report this information on their personal tax returns.

File an Annual Renewal Report

Like most states, the State of Minnesota requires all LLC owners to file a yearly report that updates all the information that the Minnesota Secretary of State has on file. This report is typically called the Annual Report, but in Minnesota, it is referred to as an Annual Renewal Report. It is filed once every year, starting the year following your original filing with the MN Secretary of State, LLC submissions needed by the end of the year (December 31). You can either mail the form or file online. Instructions on how to file the Annual Renewal form can be found here. Filing an Annual Renewal Report is necessary for maintaining an active status after starting an LLC in MN. Not filing the report or paying the fee will result in being presented a Minnesota LLC dissolution form, after which the state will dissolve your business.

Good news for prospective LLC owners in Minnesota: while some states charge over $500 as a required fee that all LLCs must pay when submitting their Annual Renewal Reports, Minnesota does not have a required fee--if you are filing online. If you are filing in person, the fee is $20.

The report can be rather complex–requiring the deciphering of gross receipts, dividends, interest, losses, and all Minnesota LLC fees–and you should seek the help of an accountant to ensure that it is filled out properly. Our partner, Bench, will provide you with a team of accountants to help you with your franchise tax reports, as well as general bookkeeping services with monthly financial statements and intuitive software to monitor your business profits and expenses.

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File an Annual Renewal Report

Like most states, the State of Minnesota requires all LLC owners to file a yearly report that updates all the information that the Minnesota Secretary of State has on file.

Raise Funds for Your LLC

You can’t start a business with zero capital. There are legal fees, the Minnesota LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC in Minnesota cost of operating a business. Some of the most commonly-used options for obtaining funding for your LLC are:

  • Personal savings and assets
  • Informal loans from family and friends
  • Peer-to-peer lending sites or crowdfunding
  • Conventional bank loan
  • Short-term credit card loans
  • Government-sponsored grants/loan programs
  • Adding LLC owners
saving_assets

Personal Saving/Assets

Use your own savings, liquidate your assets, refinance your home, borrow your Roth IRA, etc.

informal

Informal Loans From Family/Friends

Ask friends or family members if they would be willing to invest in your business.

pear_to_pear

Peer-to-Peer Landing Sites

LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

convertional

Conventional Bank Loan

LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

Many new LLC owners begin with their savings to fund their new business venture. If your savings are not enough, you may need to look into liquidating your personal assets or use them as collateral for loans. Can you sell your property or refinance your home? Do you have a retirement account such as a Traditional or Roth IRA? Usually, you can withdraw contributions you made to your IRA anytime, tax- and penalty-free, but that is not always the case. Find out what kind of fees your particular retirement plan will hit you with before using your IRA to fund your business.

Next, look into whether you know someone who shares your passion for your business and has the ability to contribute financially to your dream. These personal connections may want to support your startup idea. Although accepting an informal loan from a close friend or relative may feel safe, you should still protect yourself in case your relationship with the friend or family member goes sour. Have an official contract drawn up that all parties agree to. You can choose to have it notarized and have witnesses present for extra protection.

If you prefer not to borrow from friends and family, you can turn to a peer-to-peer (P2P) or social lending website. A P2P site is a place where investors seek out alternative opportunities to invest outside of stocks and bonds. You can apply for a loan and investors can decide whether or not they wish to fund your proposed business through interest-based loans. You can also look into crowdfunding, which is a way for small businesses or startups to raise money online through donations. These options typically require the ability to promote your business well, ensure complete transparency of where the funds go, and sometimes, the possibility of giving up ownership of a piece of your business. Make sure you look into all of the specifics.

You might be hoping to rely on a conventional loan from a bank, credit union or other lending institution for your main source of funds. In this case, you would need a formal business plan to present during your loan application process. If approved, you would be required to sign a legal contract, or a Promissory Note, outlining your obligations to the lender (which would primarily entail regular payments until the loan is paid off). If you are a first-time business owner, it is likely that you may be rejected initially. In that case, you can improve your application and reapply, or look into alternative sources of funding such as short-term financing via credit cards.

Using a credit card as a means of obtaining a fast and easy business loan would grant you use of immediate funds without the hassle and paperwork of loan applications or business plans. This is the best option for a brand new business, and we work with Nav to give our customers access to the credit they need. Visit our financing page and fill out the form for more information.

There are many credit cards that have low or no annual fees, low introductory interest rates, and other rewards depending on your spending. But be careful: make sure you pay back your credit card before the promotional low interest rate expires and skyrockets, or prior to having to pay large annual fees. And don’t make large purchases that can take years to pay back. For example, getting an equipment loan to purchase a piece of equipment is smarter than putting it on a credit card. Credit cards can be a good temporary solution if your business plan will allow you to pay back the debt quickly.

Another option at your disposal is a government-sponsored grant or loan program. Traditional lenders can turn to federal, state, or local governments to finance their business if such a grant or program is available. Typically, these programs consider sponsoring specific type of businesses or certain business owners, so be sure to research what government-sponsored loan your particular business or you might be eligible for.

Lastly, you can invite new members to your team. If you could see your businesses strategy succeeding with a partner or multiple partners, pool together your financial resources with another member to support your startup. An advantage to this funding option is your partner(s) may come with their own social network of business contacts and possibly even their own potential investors. To protect yourself, you can adjust your Operating Agreement and ensure that you are still the primary owner of the LLC.

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Raise Funds for Your LLC

You can’t start a business with zero capital. There are legal fees, the Minnesota LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC in Minnesota cost of operating a business.

Create a Business Website

Creating a website for your business is not a requirement but it is recommended to any business owner operating in the modern world. An online presence is important to have and maintain in order to ensure that your customers trust your company and know they will receive good customer service. Having a website gives your business legitimacy; your customers will visit your website and see that you are a real company with an actual website where they can read about the company’s origin and products/services and access contact information. Being able to read up on a company on their website leads to trust between a consumer and an organization. Also, dependable customer service is often offered through a website. By offering an email address, a contact form, and/or live chat with a representative on your website, you are making it easy for a customer to get connected with someone knowledgeable about the product/service. That allows a customer to know that there is a real person who cares about their satisfaction within the company that they are doing business with.

Start LLC formation

If the website is outdated or there is no website, a consumer may feel that you are not a legitimate business but a scam with no licenses to back up your business’ operations. You can avoid losing customers due to not having a professional website by ensuring that you have one. We work with GoNorth Websites to provide new businesses with high quality, cost-effective websites. Find out more about our custom designed, written, and developed websites, plus optional internet marketing add-ons that help you grow your business.

But websites needs maintenance too. You can’t simply have one created and never update it throughout the years. Policies and terms change, companies grow, products/services improve, and all of that (and more) can be reflected on the website. This keeps your customers up-to-date and offers a personal touch that is valued by any consumer.

In addition, you can look into having a blog or utilizing social media as another means of keeping your customers in-the-know and offering them a way to interact with your company. An online and/or social media presence can also lead to responsive customers who can offer you feedback on how you’re doing—plus, it’ll help get your company’s name out there.

If this all sounds like more than you’d like to deal with on your own, know that you can hire someone to maintain your website and social media presence for you—just like you can hire customer representatives to handle all correspondence. You can employ a web agency to monitor your website and/or a social media marketing agency to manage your social media campaign. A social media campaign is a coordinated marketing plan that can assist you with your business goals, which translates into extra advertising for your new business. Marketing your company can help you have a more profitable business and can aid you with paying back your business loans quicker—something any business owner aims for. Regardless of industry, all businesses should consider having a website as part of the first steps of starting a business.

T The Benefits of Having an Online Presence
benefis_hand
You will show your customers that you are a legitimate business and build trust.
benefis_message
Your company will be easy to correspond with and you can provide good, responsive customer service.
benefis_calendar
Your customers will be kept up-to-date on all exciting news related to your business.

If you’ve decided that you want to have a website for your business, keep a few things in mind. When coming up with a website name, make sure that the domain contains your business name and is easy to type and remember for future visits. If you come up with a great web domain that you’d like to use for your business but you don’t plan to create a business website today, you may want to buy the URL to prevent others from acquiring it.

While brainstorming website URLs for your website, you’re going to either realize that you already know what your business is going to be named or that you have no idea what or how to name your business. Here are a few quick Minnesota LLC name tips:

  • Follow LLC naming guidelines. Make sure that the name of your business ends with the phrase “Limited Liability Company” or the abbreviation “LLC.” It’s also important not to use any words or phrases that will make it easy for someone to mistake your company for a federal agency; think “State Department.”
  • Find a unique name. If you’re getting an LLC in Minnesota you will need an original name that is not in use by another LLC. To check if a name has already been taken, you can search the Minnesota Business Name Availability page.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of Minnesota has a business with the same name. In that case, think of something more original.
liability
Decreased Liability
An LLC separates your personal assets from any business decisions made or actions undertaken by the LLC.
keeping
Reduced Record Keeping
When compared to a corporation structure, an LLC has less registration paperwork and startup expenses.
profit
Sharing of Profits
LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.
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Create a Business Website

Creating a website for your business is not a requirement but it is recommended to any business owner operating in the modern world.

Begin Operating Your Business

Once you complete your Minnesota LLC formation, make sure to keep your LLC compliant. To do so, keep track of all important dates, such as those for filing annual documents and license/permit renewals, and pay all necessary Minnesota LLC fees. If you’d rather not do these tasks yourself, you can sign up for a service that will automatically send you alerts ahead of crucial state and federal filing deadlines. Likewise, you can hire an accountant, a tax professional, and/or an attorney to ensure you are not making errors when keeping records, filling out paperwork, and making payments.

You can begin operating your business in Minnesota with peace of mind, knowing that you are protected by an LLC in case anything unforeseeable affects your new business venture.

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Begin Operating Your Business

Once you complete your Minnesota LLC formation, make sure to keep your LLC compliant. To do so, keep track of all important dates, such as those for filing annual documents and license/permit renewals, and pay all necessary Minnesota LLC fees.


Michigan - LLC

Learn the Benefits of an LLC

There are many benefits to setting up an LLC in Michigan. LLCs not only have more tax options, but they also offer decreased liability, reduced record keeping, and sharing of profits. They are simpler to set up and maintain, with much simpler rules and regulations. There is decidedly less registration paperwork and lower-costing startup expenses. The cost to set up an LLC in Michigan is not as high as it is for a Michigan C corp or Michigan S corp.

gistogram
Decreased Liability
An LLC separates your personal assets from any business decisions made or actions undertaken by the LLC
doc
Reduced Record Keeping
When compared to a corporation structure, an LLC has less registration paperwork and startup expenses
profit
Sharing of Profits
LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

But is an LLC the right business structure for you? Some business types come with suggested business structures. For instance, many small business lawyers recommend you create an LLC in MI for an e-commerce business. Why? With e-commerce businesses, products fall under product liability statutes. This means that anyone involved in the sale and distribution of the product could be held liable—even if the problem lies with the manufacturer. An LLC provides you with limited liability in case you are sued by creating a separate and distinct legal entity and isolating business assets from your assets. Therefore, compensation can only be taken from the LLC’s assets, not your personal assets.

Why is an LLC a good idea for an e-commerce Business?

If there is an issue with a product, an LLC protects you. Compensation can only be taken from the LLC’s assets, not your personal assets.

Start Your LLC Now
transporter

Besides protecting you and your assets, creating an LLC provides a business owner with more options for federal tax purposes.

  • For instance, if an LLC has only one owner, it’s referred to as a single-member LLC or SMLLC.. Owners have the option of being taxed as a Sole Proprietorship, an S Corporation, or a C Corporation.
  • If an LLC has more than one owner, it’s categorized as a multiple-member LLC. Owners have the option of being taxed as a Partnership, an S Corporation, or a C Corporation.

An advantage to having an MI LLC with multiple members is that the members decide how to report profits and losses for tax purposes and have several options as to how they prefer to be taxed.

For federal tax purposes, if you’re the sole member of an LLC, your business is treated as a disregarded entity. This means that although you and your business are separate entities, the SMLLC’s income and expenses are reported on the owner’s personal tax return rather than an SMLLC tax return, and the IRS ignores the SMLLC’s status as a business entity. However, for purposes of employment tax and certain excise taxes, an SMLLC is still considered a separate entity. The way a sole proprietorship is taxed is the IRS’ default option for a Single Member LLC in Michigan.

In contrast, a corporation only has two choices: S corporation or C corporation.. A business operated as a sole proprietorship or a partnership also doesn’t have an option as to how it will be taxed.

For those wanting to open an LLC in Michigan, the best part is the fact that it combines the liability protection of a C Corporation with the tax treatment of any of the above business entities. Plus, it is easier to set up than a corporation.

But Michigan LLCs have a few disadvantages. If LLC owners do not choose to file for a tax status as a corporation, individual members pay high self-employment taxes. Also, if business owners decide they may want to take the company public and sell stock, a Michigan LLC does not permit this (unless you file as an S corp in Michigan). Despite these disadvantages, creating an LLC for your startup business is usually recommended. It is well worth it to protect your personal assets and simplify the process of starting an LLC in Michigan.

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Learn the Benefits of an LLC

For most folks looking to start a business in Michigan, the best type of company to form is what's known as a Limited Liability Company (LLC). An LLC can:

  • Run a business
  • Hold assets (such as office equipment/real estate)
  • Open a bank account
  • Enter into contracts

Assign Member Roles

Now it’s the time to decide whether you will run this business on your own or with another member’s or organization’s assistance, how small or large you intend for your team to be, and which duties each member will have.

There are two types of LLC management structures:
  • Member-managed LLC - Member-managed LLC - These may consist of single or multiple members. Each member plays an active role in the management and operation of the business and has the authority to make decisions to bind the LLC. This is ideal if the business is small, has limited resources, and all members have management skills.
  • Manager-managed LLC - These may consist of single or multiple members, but members must relinquish the authority to the manager and cannot interfere with the manager's operational decisions. This is ideal if your business is too large or complex to efficiently allow the sharing of management duties among all members, or if some of your members do not have management skills.

Member-managed LLC

All members can make authoritative decisions.

Works best when:

  • business is small
  • has limited resources
  • all members are skilled
manager
manager

Member-managed LLC

Only the manager can make authoritative decisions.

Works best when:

  • business is too large/complex
  • not all members are skilled

If you know your LLC will have employees, you also know that you will have to pay them. Plus, you will need to figure out the amount you should deduct from their wages for tax purposes. Employees will need to fill out a W-4 Form, and you will need to give them pay stubs with their tax information. Before this all gets overwhelming, keep in mind that we offer Payroll, Tax and HR compliance solutions with our partner, ADP.. We make it easy to pay your employees, track time, and file taxes effortlessly. Plus, you and your employees can view and update payroll information via an app--accessible anywhere, anytime, backed by 24/7 live customer service support.

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Assign Member Roles

Now it’s the time to decide whether you will run this business on your own or with another member’s or organization’s assistance, how small or large you intend for your team to be, and which duties each member will have.

Decide on a Registered Agent

Next, figure out who the Registered Agent for the LLC should be. The State of Michigan requires every LLC in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately. The Registered Agent will also act as the contact point between the Secretary of the Commonwealth and your State of Michigan LLC. Once you assign someone as your Registered Agent, they can receive official correspondence and documents on behalf of your business.

A Registered Agent can be either an individual who is a resident of Michigan or a business entity that is authorized to conduct business in the state (but not your own business). This can be you or someone else within your company, but keep in mind that this person will be through whom the state has contact with your business. This agent will receive legal documents (known as “Service of Process”) that pertain to your business. You are legally required to have one.

Generally speaking, a Registered Agent in Michigan for an LLC must meet the following requirements:
  • Possess a physical street address located in Michigan (no P.O. Box address).
  • Be available during regular business hours, typically Monday through Friday, 9 am to 5 pm.

Although the most comfortable option for a Registered Agent would be to name yourself, a friend, or a family member, know that this information will be public record. Not only will the information be searchable on the state’s LLC website, it can also be republished on other sites as well. If you work from home and would much rather keep your home address private, this might not be the best choice. An alternative you can look into is hiring a Michigan Registered Agent LLC Service. We also offer a Registered Agent Service for a small charge that you can include as an add-on to your shopping cart.

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Decide on a Registered Agent

Next, figure out who the Registered Agent for the LLC should be. The State of Michigan requires every LLC in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately.

Submit Your Articles
of Organization

As you get ready to apply for an LLC in Michigan, you will need to register your Michigan Limited Liability Company by submitting a form called the Articles of Organization. The Articles of Organization are filed with the for Michigan LLC registration, called the Secretary of the Commonwealth. The form includes information such as the LLC's name and address, the Registered Agent’s information, whether the LLC is run by managers or members, etc. If you also have an Operating Agreement written out, you would include a copy of it with the Articles of Organization. Submitting your Articles of Organization is one of the Michigan LLC filing requirements and the Articles of Organization is one of the most important State of Michigan LLC forms you will need to file.

When filing your Michigan LLC application, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of Michigan LLC forms, and long wait times whether in person or by mail--especially if you’re filing for an LLC in Michigan during peak season. GovDocFiling can speed up the process for you. We offer an easy online application, expedited pricing, and a free business start-up guide and resources with all filings. You can apply here today.

Once your completed Articles of Organization Michigan LLC form is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of Michigan.

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Submit Your Articles of Organization

As you get ready to apply for an LLC in Michigan, you will need to register your Michigan Limited Liability Company by submitting a form called the Articles of Organization.

Obtain an Employer
Identification Number

The next part to filing an LLC in Michigan is getting an EIN. Your LLC will need to file with the IRS for an Employer Identification Number (EIN), which is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. (Note: you do not need an SSN to apply for an EIN, so international applicants are welcome.) Corporations, partnerships, and LLCs require an EIN, while sole proprietors do not. Instead, sole proprietors can use their Social Security Number, but that is not recommended as that exposes you to potential identity theft/fraud. In any case, it is a good idea to obtain one in case the company grows or for banking purposes.

Fortunately, you do not have to waste time dealing with the IRS on your own. Going through the IRS directly to get your EIN can be complicated, confusing, and frustrating. GovDocFiling alleviates the angst and aggravation of Michigan business filing with the government, including applying for an EIN, or Tax ID number. Plus, GovDocFiling has one low price for same-day processing and delivery of your EIN (other Tax ID filing services charge more than $300 for same-day service!). Easily apply for your EIN/Tax ID online here. In addition, if you have any questions about obtaining an EIN, we offer 24/7 email and phone support to help you through the process. Emails are answered quickly at info@govdocfiling.com.

Once you designate how you prefer to be taxed, that decision must remain in effect for five years before being changed without approval from the IRS.

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Obtain an Employer Identification Number

The next part to filing an LLC in Michigan is getting an EIN. Your LLC will need to file with the IRS for an Employer Identification Number (EIN), which is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer.

Fill Out an Operating
Agreement

Once you’ve decided on member roles within your LLC, it is time to create a business contract that holds members to their assigned responsibilities. An LLC Operating Agreement in Michigan is a legal document that determines the financial and working relationships among business owners, members, and managers. Member duties would be explained and “what if” scenarios would be covered (such as what happens if a member leaves the LLC). If you do not have an Operating Agreement set up for your business, when something unforeseeable happens, it will be up to the state to decide how to proceed justly, and this may not be what you want.

While it is not a necessary part of a Michigan LLC registration to have an Operating Agreement, it is still extremely important to have one in order to protect your business. You can have a lawyer look over your LLC Operating Agreement Template Michigan prior to submitting it. Get the legal advice you need to protect you and familiarize yourself with Michigan LLC law with our partner, Rocket Lawyer. Your company is responsible for maintaining copies of the Operating Agreement.

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Fill Out an Operating Agreement

Once you’ve decided on member roles within your LLC, it is time to create a business contract that holds members to their assigned responsibilities. An LLC Operating Agreement in Michigan is a legal document that determines the financial and working relationships among business owners, members, and managers.

Familiarize Yourself with the
State’s Taxes and Licenses

Income from pass-through entities such as Michigan Limited Liability Companies and Michigan S corps “pass through” the business to the owners, who are required to report this information on their personal tax returns. Each individual LLC member will then have to pay taxes on his or her share of the LLC’s income. The LLC itself does not pay federal income taxes, but some states do charge the LLC other various taxes. For example, employers owe payroll tax on employees wages. Plus, there are state taxes and city taxes--and this can vary by city. If you plan to start an LLC in Detroit, Michigan, you can learn more on the Michigan Department of Treasury website.

Like most other states, Michigan taxes corporation income, which will apply to you if your LLC is classified as a C corporation. In this case, Michigan would treat the LLC as a corporation when it comes to taxes. Therefore, if your Michigan LLC files taxes as a corporation, the company itself must file a separate tax return.

In addition, there may be extra fees for certain insurances, permits, and licenses, depending on the state’s laws and the type of business you own. For example, you may need worker’s compensation, unemployment insurance, building permits, etc. Most Michigan permits and licenses can be found on the State License Search. Find out the requirements for LLCs in the state you plan to run your business in. Keep in mind that different cities or counties may require certain permits and licenses that other regions do not. Contact your city or county to see if there are any insurances, permits, or licenses you might need to obtain before you begin operating your business.

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Familiarize Yourself with the State’s Taxes and Licenses

Income from pass-through entities such as Michigan Limited Liability Companies and Michigan S corps “pass through” the business to the owners, who are required to report this information on their personal tax returns.

File an Annual Statement

Like most states, the State of Michigan requires all LLC owners to file an Annual Statement. It is due on or before February 15th of each year, along with a fee of $25 payable to the State of Michigan. The MI filing fee can be paid by credit card, check, or money order, depending on whether the statement is filed online or via mail. Online filing is available here. Mailed applications are sent to the Michigan Corporations Division.

Note that your MI LLC was formed after September 30, you are not required to file an Annual Statement on February 15 during the first year of your LLC formation. Instead, you would file the following year on February 15th.

Filing an Annual Statement is necessary for maintaining an active status after starting a business in Michigan. The bureau sends an Annual Statement template to the Registered Agent on file 90 days before the due date, but all LLC business owners should keep track of such important dates on their own or with the help of a service. Not filing an Annual Statement or paying the fee will result in being presented a Michigan LLC dissolution form, after which the state will dissolve your business.

The statement can be rather complex–requiring the deciphering of gross receipts, dividends, interest, losses, and all Michigan LLC fees–and you should seek the help of an accountant to ensure that it is filled out properly. Our partner, Bench, will provide you with a team of accountants to help you with your franchise tax reports, as well as general bookkeeping services with monthly financial statements and intuitive software to monitor your business profits and expenses.

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File an Annual Statement

Like most states, the State of Michigan requires all LLC owners to file an Annual Statement. It is due on or before February 15th of each year, along with a fee of $25 payable to the State of Michigan.

Raise Funds for Your LLC

You can’t start a business with zero capital. There are legal fees, the Michigan LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC Michigan cost of operating a business. Some of the most commonly-used options for obtaining funding for your LLC are:

  • Personal savings and assets
  • Informal loans from family and friends
  • Peer-to-peer lending sites or crowdfunding
  • Conventional bank loan
  • Short-term credit card loans
  • Government-sponsored grants/loan programs
  • Adding LLC owners
saving_assets

Personal Saving/Assets

Use your own savings, liquidate your assets, refinance your home, borrow your Roth IRA, etc.

informal

Informal Loans From Family/Friends

Ask friends or family members if they would be willing to invest in your business.

pear_to_pear

Peer-to-Peer Landing Sites

LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

convertional

Conventional Bank Loan

LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

Many new LLC owners begin with their savings to fund their new business venture. If your savings are not enough, you may need to look into liquidating your personal assets or use them as collateral for loans. Can you sell your property or refinance your home? Do you have a retirement account such as a Traditional or Roth IRA? Usually, you can withdraw contributions you made to your IRA anytime, tax- and penalty-free, but that is not always the case. Find out what kind of fees your particular retirement plan will hit you with before using your IRA to fund your business.

Next, look into whether you know someone who shares your passion for your business and has the ability to contribute financially to your dream. These personal connections may want to support your startup idea. Although accepting an informal loan from a close friend or relative may feel safe, you should still protect yourself in case your relationship with the friend or family member goes sour. Have an official contract drawn up that all parties agree to. You can choose to have it notarized and have witnesses present for extra protection.

If you prefer not to borrow from friends and family, you can turn to a peer-to-peer (P2P) or social lending website. A P2P site is a place where investors seek out alternative opportunities to invest outside of stocks and bonds. You can apply for a loan and investors can decide whether or not they wish to fund your proposed business through interest-based loans. You can also look into crowdfunding, which is a way for small businesses or startups to raise money online through donations. These options typically require the ability to promote your business well, ensure complete transparency of where the funds go, and sometimes, the possibility of giving up ownership of a piece of your business. Make sure you look into all of the specifics.

You might be hoping to rely on a conventional loan from a bank, credit union or other lending institution for your main source of funds. In this case, you would need a formal business plan to present during your loan application process. If approved, you would be required to sign a legal contract, or a Promissory Note, outlining your obligations to the lender (which would primarily entail regular payments until the loan is paid off). If you are a first-time business owner, it is likely that you may be rejected initially. In that case, you can improve your application and reapply, or look into alternative sources of funding such as short-term financing via credit cards.

Using a credit card as a means of obtaining a fast and easy business loan would grant you use of immediate funds without the hassle and paperwork of loan applications or business plans. This is the best option for a brand new business, and we work with Nav to give our customers access to the credit they need. Visit our financing page and fill out the form for more information.

There are many credit cards that have low or no annual fees, low introductory interest rates, and other rewards depending on your spending. But be careful: make sure you pay back your credit card before the promotional low interest rate expires and skyrockets, or prior to having to pay large annual fees. And don’t make large purchases that can take years to pay back. For example, getting an equipment loan to purchase a piece of equipment is smarter than putting it on a credit card. Credit cards can be a good temporary solution if your business plan will allow you to pay back the debt quickly.

Another option at your disposal is a government-sponsored grant or loan program. Traditional lenders can turn to federal, state, or local governments to finance their business if such a grant or program is available. Typically, these programs consider sponsoring specific type of businesses or certain business owners, so be sure to research what government-sponsored loan your particular business or you might be eligible for.

Lastly, you can invite new members to your team. If you could see your businesses strategy succeeding with a partner or multiple partners, pool together your financial resources with another member to support your startup. An advantage to this funding option is your partner(s) may come with their own social network of business contacts and possibly even their own potential investors. To protect yourself, you can adjust your Operating Agreement and ensure that you are still the primary owner of the LLC.

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Raise Funds for Your LLC

You can’t start a business with zero capital. There are legal fees, the Michigan LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC Michigan cost of operating a business.

Create a Business Website

Creating a website for your business is not a requirement but it is recommended to any business owner operating in the modern world. An online presence is important to have and maintain in order to ensure that your customers trust your company and know they will receive good customer service. Having a website gives your business legitimacy; your customers will visit your website and see that you are a real company with an actual website where they can read about the company’s origin and products/services and access contact information. Being able to read up on a company on their website leads to trust between a consumer and an organization. Also, dependable customer service is often offered through a website. By offering an email address, a contact form, and/or live chat with a representative on your website, you are making it easy for a customer to get connected with someone knowledgeable about the product/service. That allows a customer to know that there is a real person who cares about their satisfaction within the company that they are doing business with.

Start LLC formation

If the website is outdated or there is no website, a consumer may feel that you are not a legitimate business but a scam with no licenses to back up your business’ operations. You can avoid losing customers due to not having a professional website by ensuring that you have one. We work with GoNorth Websites to provide new businesses with high quality, cost-effective websites. Find out more about our custom designed, written, and developed websites, plus optional internet marketing add-ons that help you grow your business.

But websites needs maintenance too. You can’t simply have one created and never update it throughout the years. Policies and terms change, companies grow, products/services improve, and all of that (and more) can be reflected on the website. This keeps your customers up-to-date and offers a personal touch that is valued by any consumer.

In addition, you can look into having a blog or utilizing social media as another means of keeping your customers in-the-know and offering them a way to interact with your company. An online and/or social media presence can also lead to responsive customers who can offer you feedback on how you’re doing—plus, it’ll help get your company’s name out there.

If this all sounds like more than you’d like to deal with on your own, know that you can hire someone to maintain your website and social media presence for you—just like you can hire customer representatives to handle all correspondence. You can employ a web agency to monitor your website and/or a social media marketing agency to manage your social media campaign. A social media campaign is a coordinated marketing plan that can assist you with your business goals, which translates into extra advertising for your new business. Marketing your company can help you have a more profitable business and can aid you with paying back your business loans quicker—something any business owner aims for. Regardless of industry, all businesses should consider having a website as part of the first steps of starting a business.

T The Benefits of Having an Online Presence
benefis_hand
You will show your customers that you are a legitimate business and build trust.
benefis_message
Your company will be easy to correspond with and you can provide good, responsive customer service.
benefis_calendar
Your customers will be kept up-to-date on all exciting news related to your business.

If you’ve decided that you want to have a website for your business, keep a few things in mind. When coming up with a website name, make sure that the domain contains your business name and is easy to type and remember for future visits. If you come up with a great web domain that you’d like to use for your business but you don’t plan to create a business website today, you may want to buy the URL to prevent others from acquiring it.

While brainstorming website URLs for your website, you’re going to either realize that you already know what your business is going to be named or that you have no idea what or how to name your business. Here are a few quick Michigan LLC name tips:

  • Follow LLC naming guidelines. Make sure that the name of your business ends with the phrase “Limited Liability Company” or the abbreviation “LLC.” It’s also important not to use any words or phrases that will make it easy for someone to mistake your company for a federal agency; think “State Department.”
  • Find a unique name. If you’re getting an LLC in Michigan you will need an original name that is not in use by another LLC. To check if a name has already been taken, you can search the Business Entity Name Database.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of Michigan has a business with the same name. In that case, think of something more original.
liability
Decreased Liability
An LLC separates your personal assets from any business decisions made or actions undertaken by the LLC.
keeping
Reduced Record Keeping
When compared to a corporation structure, an LLC has less registration paperwork and startup expenses.
profit
Sharing of Profits
LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.
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Create a Business Website

Creating a website for your business is not a requirement but it is recommended to any business owner operating in the modern world.

Begin Operating Your Business

Once you complete your Michigan LLC formation, make sure to keep your LLC compliant. To do so, keep track of all important dates, such as those for filing annual documents and license/permit renewals, and pay all necessary Michigan LLC fees. If you’d rather not do these tasks yourself, you can sign up for a service that will automatically send you alerts ahead of crucial state and federal filing deadlines. Likewise, you can hire an accountant, a tax professional, and/or an attorney to ensure you are not making errors when keeping records, filling out paperwork, and making payments.

You can begin operating your business in Michigan with peace of mind, knowing that you are protected by an LLC in case anything unforeseeable affects your new business venture.

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Begin Operating Your Business

Once you complete your Michigan LLC formation, make sure to keep your LLC compliant. To do so, keep track of all important dates, such as those for filing annual documents and license/permit renewals, and pay all necessary Michigan LLC fees.


Massachusetts - LLC

Learn the Benefits of an LLC

There are many benefits to setting up your business as a Massachusetts LLC. LLCs not only have more tax options, but they also offer decreased liability, reduced record keeping, and sharing of profits. They are simpler to set up and maintain, with much simpler rules and regulations. There is decidedly less registration paperwork and lower-costing startup expenses. The cost to set up an LLC in Massachusetts is not as high as it is for a Massachusetts C corp or Massachusetts S corp.

gistogram
Decreased Liability
An LLC separates your personal assets from any business decisions made or actions undertaken by the LLC
doc
Reduced Record Keeping
When compared to a corporation structure, an LLC has less registration paperwork and startup expenses
profit
Sharing of Profits
LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

But is an LLC the right business structure for you? Some business types come with suggested business structures. For instance, many small business lawyers recommend you create an LLC in MA for an e-commerce business. Why? With e-commerce businesses, products fall under product liability statutes. This means that anyone involved in the sale and distribution of the product could be held liable—even if the problem lies with the manufacturer. An LLC provides you with limited liability in case you are sued by creating a separate and distinct legal entity and isolating business assets from your assets. Therefore, compensation can only be taken from the LLC’s assets, not your personal assets.

Why is an LLC a good idea for an e-commerce Business?

If there is an issue with a product, an LLC protects you. Compensation can only be taken from the LLC’s assets, not your personal assets.

Start Your LLC Now
transporter

Besides protecting you and your assets, creating an LLC provides a business owner with more options for federal tax purposes.

  • For instance, if an LLC has only one owner, it’s referred to as a single-member LLC or SMLLC.. Owners have the option of being taxed as a Sole Proprietorship, an S Corporation, or a C Corporation.
  • If an LLC has more than one owner, it’s categorized as a multiple-member LLC. Owners have the option of being taxed as a Partnership, an S Corporation, or a C Corporation.

An advantage to having an MA LLC with multiple members is that the members decide how to report profits and losses for tax purposes and have several options as to how they prefer to be taxed.

For federal tax purposes, if you’re the sole member of an LLC, your business is treated as a disregarded entity. This means that although you and your business are separate entities, the SMLLC’s income and expenses are reported on the owner’s personal tax return rather than an SMLLC tax return, and the IRS ignores the SMLLC’s status as a business entity. However, for purposes of employment tax and certain excise taxes, an SMLLC is still considered a separate entity. The way a sole proprietorship is taxed is the IRS’ default option for a Single Member LLC in Massachusetts

In contrast, a corporation only has two choices: S corporation or C corporation.. A business operated as a sole proprietorship or a partnership also doesn’t have an option as to how it will be taxed.

For those wanting to open an LLC in Massachusetts, the best part is the fact that it combines the liability protection of a C Corporation with the tax treatment of any of the above business entities. Plus, it is easier to set up than a corporation.

But Massachusetts LLCs have a few disadvantages. If LLC owners do not choose to file for a tax status as a corporation, individual members pay high self-employment taxes. Also, if business owners decide they may want to take the company public and sell stock, a Massachusetts LLC does not permit this (unless you file as an S corp in Massachusetts). Despite these disadvantages, creating an LLC for your startup business is usually recommended. It is well worth it to protect your personal assets and simplify the process of starting an LLC in MA.

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Learn the Benefits of an LLC

For most folks looking to start a business in Massachusetts, the best type of company to form is what's known as a Limited Liability Company (LLC). An LLC can:

  • Run a business
  • Hold assets (such as office equipment/real estate)
  • Open a bank account
  • Enter into contracts

Assign Member Roles

Now it’s the time to decide whether you will run this business on your own or with another member’s or organization’s assistance, how small or large you intend for your team to be, and which duties each member will have.

There are two types of LLC management structures:
  • Member-managed LLC - Member-managed LLC - These may consist of single or multiple members. Each member plays an active role in the management and operation of the business and has the authority to make decisions to bind the LLC. This is ideal if the business is small, has limited resources, and all members have management skills.
  • Manager-managed LLC - These may consist of single or multiple members, but members must relinquish the authority to the manager and cannot interfere with the manager's operational decisions. This is ideal if your business is too large or complex to efficiently allow the sharing of management duties among all members, or if some of your members do not have management skills.

Member-managed LLC

All members can make authoritative decisions.

Works best when:

  • business is small
  • has limited resources
  • all members are skilled
manager
manager

Member-managed LLC

Only the manager can make authoritative decisions.

Works best when:

  • business is too large/complex
  • not all members are skilled

If you know your LLC will have employees, you also know that you will have to pay them. Plus, you will need to figure out the amount you should deduct from their wages for tax purposes. Employees will need to fill out a W-4 Form, and you will need to give them pay stubs with their tax information. Before this all gets overwhelming, keep in mind that we offer Payroll, Tax and HR compliance solutions with our partner, ADP.. We make it easy to pay your employees, track time, and file taxes effortlessly. Plus, you and your employees can view and update payroll information via an app--accessible anywhere, anytime, backed by 24/7 live customer service support.

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Assign Member Roles

Now it’s the time to decide whether you will run this business on your own or with another member’s or organization’s assistance, how small or large you intend for your team to be, and which duties each member will have.

Decide on a Registered Agent

Next, figure out who the Registered Agent for the LLC should be. The State of Massachusetts requires every LLC in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately. The Registered Agent will also act as the contact point between the state of Massachusetts and your Massachusetts LLC. Once you assign someone as your Registered Agent, they can receive official correspondence and documents on behalf of your business.

A Registered Agent can be either an individual who is a resident of Massachusetts or a business entity that is authorized to conduct business in the state (but not your own business). This can be you or someone else within your company, but keep in mind that this person will be through whom the state has contact with your business. This agent will receive legal documents (known as “Service of Process”) that pertain to your business. You are legally required to have one.

Generally speaking, a Registered Agent in Massachusetts for an LLC must meet the following requirements:
  • Possess a physical street address located in Massachusetts (no P.O. Box address).
  • Be available during regular business hours, typically Monday through Friday, 9 am to 5 pm.

Although the most comfortable option for a Registered Agent would be to name yourself, a friend, or a family member, know that this information will be public record. Not only will the information be searchable on the state’s LLC website, it can also be republished on other sites as well. If you work from home and would much rather keep your home address private, this might not be the best choice. An alternative you can look into is hiring a Massachusetts Registered Agent LLC Service. We also offer a Registered Agent Service for a small charge that you can include as an add-on to your shopping cart.

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Decide on a Registered Agent

Next, figure out who the Registered Agent for the LLC should be. The State of Massachusetts requires every LLC in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately.

Submit Your Articles
of Organization

While forming an LLC in MA, you will also need to register your Massachusetts Limited Liability Company by submitting a form called the Articles of Organization. The Articles of Organization are filed with the Secretary of State for Massachusetts LLC registration, called the Secretary of the Commonwealth in this state. The form includes information such as the LLC's name and address, the Registered Agent’s information, whether the LLC is run by managers or members, etc. If you also have an Operating Agreement written out, you would include a copy of it with the Articles of Organization. Submitting your Articles of Organization is one of the Massachusetts LLC filing requirements.

If filing on your own, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of forms, and long wait times whether in person or by mail--especially if you’re filing for an LLC during peak season. GovDocFiling can speed up the process for you. We offer an easy online application, expedited pricing, and a free business start-up guide and resources with all filings. You can apply here today.

Once your completed Articles of Organization Massachusetts LLC form is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of Massachusetts. Once your completed Massachusetts Certificate of Formation form is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of Massachusetts.

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Submit Your Articles of Organization

While forming an LLC in MA, you will also need to register your Massachusetts Limited Liability Company by submitting a form called the Articles of Organization.

Obtain an Employer
Identification Number

The next part to setting up an LLC in Massachusetts is getting an EIN. Your LLC will need to file with the IRS for an Employer Identification Number (EIN), which is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. (Note: you do not need an SSN to apply for an EIN, so international applicants are welcome.) Corporations, partnerships, and LLCs require an EIN, while sole proprietors do not. Instead, sole proprietors can use their Social Security Number, but that is not recommended as that exposes you to potential identity theft/fraud. In any case, it is a good idea to obtain one in case the company grows or for banking purposes.

Fortunately, you do not have to waste time dealing with the IRS on your own. Going through the IRS directly to get your EIN can be complicated, confusing, and frustrating. GovDocFiling alleviates the angst and aggravation of Massachusetts business filing with the government, including applying for an EIN, or Tax ID number. Plus, GovDocFiling has one low price for same-day processing and delivery of your EIN (other Tax ID filing services charge more than $300 for same-day service!). Easily apply for your EIN/Tax ID online here. In addition, if you have any questions about obtaining an EIN, we offer 24/7 email and phone support to help you through the process. Emails are answered quickly at info@govdocfiling.com.

Once you designate how you prefer to be taxed, that decision must remain in effect for five years before being changed without approval from the IRS.

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Obtain an Employer Identification Number

The next part to setting up an LLC in Massachusetts is getting an EIN. Your LLC will need to file with the IRS for an Employer Identification Number (EIN), which is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer.

Fill Out an Operating
Agreement

Once you’ve decided on member roles within your LLC, it is time to create a business contract that holds members to their assigned responsibilities. An LLC Operating Agreement in Massachusetts is a legal document that determines the financial and working relationships among business owners, members, and managers. Member duties would be explained and “what if” scenarios would be covered (such as what happens if a member leaves the LLC). If you do not have an Operating Agreement set up for your business, when something unforeseeable happens, it will be up to the state to decide how to proceed justly, and this may not be what you want.

While it is not a necessary part of a Massachusetts LLC registration to have an Operating Agreement, it is still extremely important to have one in order to protect your business. You can have a lawyer look over your LLC Operating Agreement Template Massachusetts prior to submitting it. Get the legal advice you need to protect you and familiarize yourself with Massachusetts LLC law with our partner, Rocket Lawyer. Your company is responsible for maintaining copies of the Operating Agreement.

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Fill Out an Operating Agreement

Once you’ve decided on member roles within your LLC, it is time to create a business contract that holds members to their assigned responsibilities. An LLC Operating Agreement in Massachusetts is a legal document that determines the financial and working relationships among business owners, members, and managers.

Familiarize Yourself with the
State’s Taxes and Licenses

Income from pass-through entities such as Massachusetts Limited Liability Companies and Massachusetts S corps “pass through” the business to the owners, who are required to report this information on their personal tax returns. Each individual LLC member will then have to pay taxes on his or her share of the LLC’s income. The LLC itself does not pay federal income taxes, but some states do charge the LLC other various taxes. For example, employers owe payroll tax on employees wages. You can learn more on the MassTax Connect Department of Revenue website.

Like most other states, Massachusetts taxes corporation income, which will apply to you if your LLC is classified as a C corporation. In this case, Massachusetts would treat the LLC as a corporation when it comes to taxes. Therefore, if your Massachusetts LLC files taxes as a corporation, the company itself must file a separate tax return. Massachusetts corporations pay a corporation income tax, which is generally calculated based on taxable tangible property plus 8% of income (from Massachusetts sources). The minimum tax is $456.

In addition, there may be extra fees for certain insurances, permits, and licenses, depending on the state’s laws and the type of business you own. For example, you may need worker’s compensation, unemployment insurance, building permits, etc. Unemployment insurance information is here. Most Massachusetts permits and licenses can be found on the Commonwealth of Massachusetts website. Find out the requirements for LLCs in the state you plan to run your business in. Keep in mind that different cities or counties may require certain permits and licenses that other regions do not. Contact your city or county to see if there are any insurances, permits, or licenses you might need to obtain before you begin operating your business.

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Familiarize Yourself with the State’s Taxes and Licenses

Income from pass-through entities such as Massachusetts Limited Liability Companies and Massachusetts S corps “pass through” the business to the owners, who are required to report this information on their personal tax returns.

File an Annual Report

Like most states, the State of Massachusetts requires all LLC owners to file an Annual Report. This report is due on or before the anniversary date of your Massachusetts LLC formation, along with a fee payable to the Massachusetts Corporations Division. The MA filing fee varies depending on whether you file online or by mail--$500 for mailed forms and $520 for online. You can file online on the Secretary of the Commonwealth of Massachusetts’ website, after you create an account. Filing an Annual Report is necessary for maintaining an active status after starting a business in Massachusetts. Refusal to file or pay the fee will result in being presented a Massachusetts LLC dissolution form, after which the state will dissolve your business.

The report can be rather complex–requiring the deciphering of gross receipts, dividends, interest, losses, etc.–and you should seek the help of an accountant to ensure that it is filled out properly. Our partner, Bench, will provide you with a team of accountants to help you with your franchise tax reports, as well as general bookkeeping services with monthly financial statements and intuitive software to monitor your business profits and expenses.

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File an Annual Report

Like most states, the State of Massachusetts requires all LLC owners to file an Annual Report. This report is due on or before the anniversary date of your Massachusetts LLC formation, along with a fee payable to the Massachusetts Corporations Division.

Raise Funds for Your LLC

You can’t start a business with zero capital. There are legal fees, document filing fees, taxes, employees to pay if you are not an SMLLC, as well as the general LLC Massachusetts cost of operating a business. Some of the most commonly-used options for obtaining funding for your LLC are:

  • Personal savings and assets
  • Informal loans from family and friends
  • Peer-to-peer lending sites or crowdfunding
  • Conventional bank loan
  • Short-term credit card loans
  • Government-sponsored grants/loan programs
  • Adding LLC owners
saving_assets

Personal Saving/Assets

Use your own savings, liquidate your assets, refinance your home, borrow your Roth IRA, etc.

informal

Informal Loans From Family/Friends

Ask friends or family members if they would be willing to invest in your business.

pear_to_pear

Peer-to-Peer Landing Sites

LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

convertional

Conventional Bank Loan

LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.

Many new LLC owners begin with their savings to fund their new business venture. If your savings are not enough, you may need to look into liquidating your personal assets or use them as collateral for loans. Can you sell your property or refinance your home? Do you have a retirement account such as a Traditional or Roth IRA? Usually, you can withdraw contributions you made to your IRA anytime, tax- and penalty-free, but that is not always the case. Find out what kind of fees your particular retirement plan will hit you with before using your IRA to fund your business.

Next, look into whether you know someone who shares your passion for your business and has the ability to contribute financially to your dream. These personal connections may want to support your startup idea. Although accepting an informal loan from a close friend or relative may feel safe, you should still protect yourself in case your relationship with the friend or family member goes sour. Have an official contract drawn up that all parties agree to. You can choose to have it notarized and have witnesses present for extra protection.

If you prefer not to borrow from friends and family, you can turn to a peer-to-peer (P2P) or social lending website. A P2P site is a place where investors seek out alternative opportunities to invest outside of stocks and bonds. You can apply for a loan and investors can decide whether or not they wish to fund your proposed business through interest-based loans. You can also look into crowdfunding, which is a way for small businesses or startups to raise money online through donations. These options typically require the ability to promote your business well, ensure complete transparency of where the funds go, and sometimes, the possibility of giving up ownership of a piece of your business. Make sure you look into all of the specifics.

You might be hoping to rely on a conventional loan from a bank, credit union or other lending institution for your main source of funds. In this case, you would need a formal business plan to present during your loan application process. If approved, you would be required to sign a legal contract, or a Promissory Note, outlining your obligations to the lender (which would primarily entail regular payments until the loan is paid off). If you are a first-time business owner, it is likely that you may be rejected initially. In that case, you can improve your application and reapply, or look into alternative sources of funding such as short-term financing via credit cards.

Using a credit card as a means of obtaining a fast and easy business loan would grant you use of immediate funds without the hassle and paperwork of loan applications or business plans. This is the best option for a brand new business, and we work with Nav to give our customers access to the credit they need. Visit our financing page and fill out the form for more information.

There are many credit cards that have low or no annual fees, low introductory interest rates, and other rewards depending on your spending. But be careful: make sure you pay back your credit card before the promotional low interest rate expires and skyrockets, or prior to having to pay large annual fees. And don’t make large purchases that can take years to pay back. For example, getting an equipment loan to purchase a piece of equipment is smarter than putting it on a credit card. Credit cards can be a good temporary solution if your business plan will allow you to pay back the debt quickly.

Another option at your disposal is a government-sponsored grant or loan program. Traditional lenders can turn to federal, state, or local governments to finance their business if such a grant or program is available. Typically, these programs consider sponsoring specific type of businesses or certain business owners, so be sure to research what government-sponsored loan your particular business or you might be eligible for.

Lastly, you can invite new members to your team. If you could see your businesses strategy succeeding with a partner or multiple partners, pool together your financial resources with another member to support your startup. An advantage to this funding option is your partner(s) may come with their own social network of business contacts and possibly even their own potential investors. To protect yourself, you can adjust your Operating Agreement and ensure that you are still the primary owner of the LLC.

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Raise Funds for Your LLC

You can’t start a business with zero capital. There are legal fees, document filing fees, taxes, employees to pay if you are not an SMLLC, as well as the general LLC Massachusetts cost of operating a business.

Create a Business Website

Creating a website for your business is not a requirement but it is recommended to any business owner operating in the modern world. An online presence is important to have and maintain in order to ensure that your customers trust your company and know they will receive good customer service. Having a website gives your business legitimacy; your customers will visit your website and see that you are a real company with an actual website where they can read about the company’s origin and products/services and access contact information. Being able to read up on a company on their website leads to trust between a consumer and an organization. Also, dependable customer service is often offered through a website. By offering an email address, a contact form, and/or live chat with a representative on your website, you are making it easy for a customer to get connected with someone knowledgeable about the product/service. That allows a customer to know that there is a real person who cares about their satisfaction within the company that they are doing business with.

Start LLC formation

If the website is outdated or there is no website, a consumer may feel that you are not a legitimate business but a scam with no licenses to back up your business’ operations. You can avoid losing customers due to not having a professional website by ensuring that you have one. We work with GoNorth Websites to provide new businesses with high quality, cost-effective websites. Find out more about our custom designed, written, and developed websites, plus optional internet marketing add-ons that help you grow your business.

But websites needs maintenance too. You can’t simply have one created and never update it throughout the years. Policies and terms change, companies grow, products/services improve, and all of that (and more) can be reflected on the website. This keeps your customers up-to-date and offers a personal touch that is valued by any consumer.

In addition, you can look into having a blog or utilizing social media as another means of keeping your customers in-the-know and offering them a way to interact with your company. An online and/or social media presence can also lead to responsive customers who can offer you feedback on how you’re doing—plus, it’ll help get your company’s name out there.

If this all sounds like more than you’d like to deal with on your own, know that you can hire someone to maintain your website and social media presence for you—just like you can hire customer representatives to handle all correspondence. You can employ a web agency to monitor your website and/or a social media marketing agency to manage your social media campaign. A social media campaign is a coordinated marketing plan that can assist you with your business goals, which translates into extra advertising for your new business. Marketing your company can help you have a more profitable business and can aid you with paying back your business loans quicker—something any business owner aims for. Regardless of industry, all businesses should consider having a website as part of the first steps of starting a business.

T The Benefits of Having an Online Presence
benefis_hand
You will show your customers that you are a legitimate business and build trust.
benefis_message
Your company will be easy to correspond with and you can provide good, responsive customer service.
benefis_calendar
Your customers will be kept up-to-date on all exciting news related to your business.

If you’ve decided that you want to have a website for your business, keep a few things in mind. When coming up with a website name, make sure that the domain contains your business name and is easy to type and remember for future visits. If you come up with a great web domain that you’d like to use for your business but you don’t plan to create a business website today, you may want to buy the URL to prevent others from acquiring it.

While brainstorming website URLs for your website, you’re going to either realize that you already know what your business is going to be named or that you have no idea what or how to name your business. Here are a few quick Massachusetts LLC name tips:

  • Follow LLC naming guidelines. Make sure that the name of your business ends with the phrase “Limited Liability Company” or the abbreviation “LLC.” It’s also important not to use any words or phrases that will make it easy for someone to mistake your company for a federal agency; think “State Department.”
  • Find a unique name. If you’re getting ready to file an LLC in Massachusetts you will need an original name that is not in use by another LLC. To check if a name has already been taken, you can search the Business Entity Name Database. If you are not ready to start your LLC just yet but want to reserve a name, you can do for $30 by filling out the Application for Reservation of Name. This will put a hold on your business name for 60 days. If necessary, you can extend the name reservation for another 60 days for an additional $30 fee before the original reservation expires.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of Massachusetts has a business with the same name. In that case, think of something more original.
liability
Decreased Liability
An LLC separates your personal assets from any business decisions made or actions undertaken by the LLC.
keeping
Reduced Record Keeping
When compared to a corporation structure, an LLC has less registration paperwork and startup expenses.
profit
Sharing of Profits
LLC members might contribute different proportions of capital and sweat equity, and they must determine for themselves what percentage of the profits/losses goes to whom.
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Create a Business Website

Creating a website for your business is not a requirement but it is recommended to any business owner operating in the modern world.

Begin Operating Your Business

Once you complete your Massachusetts LLC formation, make sure to keep your LLC compliant. To do so, keep track of all important dates, such as those for filing annual documents and license/permit renewals, and pay all necessary Massachusetts LLC fees. If you’d rather not do these tasks yourself, you can sign up for a service that will automatically send you alerts ahead of crucial state and federal filing deadlines. Likewise, you can hire an accountant, a tax professional, and/or an attorney to ensure you are not making errors when keeping records, filling out paperwork, and making payments.

You can begin operating your business in Massachusetts with peace of mind, knowing that you are protected by an LLC in case anything unforeseeable affects your new business venture.

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step 11 /11

Begin Operating Your Business

Once you complete your Massachusetts LLC formation, make sure to keep your LLC compliant. To do so, keep track of all important dates, such as those for filing annual documents and license/permit renewals, and pay all necessary Massachusetts LLC fees.