Georgia - LLC

Learn the Benefits of an LLC

There are many benefits of an LLC in Georgia. 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 GA LLC cost is not as high as it is for a GA corp or S-corp.

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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 register as an LLC in GA 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 establishing an LLC in Georgia 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 Georgia.

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 Georgia, 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 Georgia 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 Georgia LLC does not permit this (unless you file as an S corp in Georgia). 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 steps necessary to get an LLC in GA.

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Learn the Benefits of an LLC

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

  • 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 GA State 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 Georgia 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 Georgia 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 Georgia 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. Your Registered Agent’s information would go on your most important Georgia Secretary of State LLC forms.

Generally speaking, a Registered Agent in Georgia for an LLC must meet the following requirements:
  • Possess a physical street address located in Georgia (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 Georgia Registered Agent for an LLC 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 Georgia 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 Georgia 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 Georgia, you will need to register your Georgia Limited Liability Company by submitting a form called the Articles of Organization. Filling out and filing the Articles of Organization is how you form an LLC in Georgia with the 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 a Georgia Operating Agreement written out, you would include a copy of it with the Articles of Organization in your own business records. Submitting your Articles of Organization in Georgia is a precursor to starting your own company.

When filing your Georgia LLC application, there is usually a non-refundable Georgia LLC filing fee that you have to pay with check or money order, additional fees for hand-delivery of Georgia LLC forms, and long wait times whether in person or by mail--especially if you happen to file an LLC in GA 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 at our Georgia LLC formation websitea> today.

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

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Submit Your Articles of Organization

As you get ready to apply for an LLC in Georgia, you will need to register your Georgia Limited Liability Company by submitting a form called the Articles of Organization. Filling out and filing the Articles of Organization is how you form an LLC in Georgia with the Secretary of State.

Obtain an Employer
Identification Number

One of the Georgia 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 Georgia 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 Georgia 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 Georgia 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 Georgia 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 Georgia form prior to submitting it. Get the legal advice you need to protect you and familiarize yourself with Georgia 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 Georgia 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 LLC companies in Georgia or a Georgia S corp, “passes through” the business to the owners, who are then 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. Georgia’s personal income tax rates range from 1% to 6%

There are also other various taxes. For example, employers owe payroll tax on employees wages. Additionally, Georgia has a sales and use tax of 4%, but this can change depending on local municipalities. The total tax rate can go up to 9%. The Georgia Department of Revenue has additional tax information. A list of the taxes a Georgia LLC may have to pay can be found on the business taxes page of the DOR website.

Like most other states, Georgia taxes corporation income, which will apply to you if your LLC is classified as a C corporation. In this case, Georgia would treat the LLC as a corporation when it comes to taxes. Therefore, if your State of Georgia 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 most likely will need worker’s compensation, unemployment insurance, building permits, etc. Use the drop down menu on the Georgia Secretary of State’s website to see if your business may need a specific license. Plus, 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 LLC companies in Georgia or a Georgia S corp, “passes through” the business to the owners, who are then required to report this information on their personal tax returns.

File an Annual Registration

LLC owners are required to submit a report that updates all the information that the GA Secretary of State has on file. This report is typically called the Annual Report, but in Georgia, it is called the Annual Registration. It is due by April 1, but can be filed as early as January 1. Online filing for Annual Registrations is available here. A processing fee of $50 is required.

Filing an Annual Registration is necessary for maintaining an active status after you create an LLC in Georgia. Not filing the report or paying the fee will result in being presented a Georgia 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, and all Georgia 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 Registration

LLC owners are required to submit a report that updates all the information that the GA Secretary of State has on file. This report is typically called the Annual Report, but in Georgia, it is called the Annual Registration.

Raise Funds for Your LLC

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

Create a Business Website

Creating a website for your State of Georgia LLC 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 Georgia 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 Georgia 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 aren’t ready to register a Georgia LLC today, you can reserve your business name for 30 days. All you would need to do is pay $25 to the Georgia Secretary of State and make the request online or by mail. Instructions for the process of a Georgia LLC name reservation are here.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of Georgia 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 State of Georgia LLC 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 Georgia 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 Georgia 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 LLC paperwork for the GA SOS, and making payments.

You can begin operating your business in Georgia 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 Georgia 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 Georgia LLC fees.


Florida - LLC

Learn the Benefits of an LLC

There are many benefits to setting up an LLC in Florida. 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 start an LLC in Florida is not as high as it is for a Florida C corp or Florida 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 FL 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 FL 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 Florida.

In contrast, a corporation only has two choices: Florida 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 Florida, 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 Florida 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 Florida LLC does not permit this (unless you file as an S corp in Florida). 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 Florida.

In addition, there are different types of LLCs in Florida, such as a Florida foreign LLC, anonymous LLC Florida, series LLC in Florida, as well as Florida professional limited liability company--some of which were discussed in Florida’s New Revised LLC Act.

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Learn the Benefits of an LLC

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

  • 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 or Office

Next, figure out who the Registered Agent or Office for the LLC should be. The State of Florida LLC registration process 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 Florida Secretary of State and LLC. Once you assign someone as your Registered Agent or Office, 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 Florida or a business entity or office 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, the Florida LLC Registered Agent requirements are:
  • Possess a physical street address located in Florida (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 Florida LLC 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 Florida 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.

Any changes to the Registered Agent or Office need to be submitted to the Florida Division of Corp. The changes would have to made on this form.

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Decide on a Registered Agent or Office

Next, figure out who the Registered Agent or Office for the LLC should be. The State of Florida LLC registration process requires every LLC in the state to have one.

Submit Your Articles
of Organization

While establishing an LLC in Florida, you will need to register your Florida Limited Liability Company by submitting what is called the Articles of Organization--a type of State of Florida LLC registration form. The Articles of Organization are filed with the Secretary of State for Florida LLC registration. 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 a Florida Limited Liability Operating Agreement form written out, you would include a copy of it with the Articles of Organization in your records. Submitting your Articles of Organization is one of the Florida LLC filing requirements and the Articles of Organization is one of the most important State of Florida LLC forms you will need to file.

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

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

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Submit Your Articles of Organization

While establishing an LLC in Florida, you will need to register your Florida Limited Liability Company by submitting what is called the Articles of Organization--a type of State of Florida LLC registration form. The Articles of Organization are filed with the Secretary of State for Florida LLC registration.

Obtain an Employer
Identification Number

The next part to filing an LLC in Florida 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 Florida 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 or how to set up a Florida LLC online, 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 Florida 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

The next step in becoming an LLC in Florida is to create a business contract that holds members to their assigned responsibilities. An LLC Operating Agreement in Florida 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 Florida 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 Florida LLC Operating Agreement prior to submitting it. Get the legal advice you need to protect you and familiarize yourself with Florida LLC law with our partner, Rocket Lawyer. Your company is responsible for maintaining copies of the Operating Agreement, as well as any Florida LLC amendment that may be necessary down the road.

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Fill Out an Operating Agreement

The next step in becoming an LLC in Florida is to create a business contract that holds members to their assigned responsibilities. An LLC Operating Agreement in Florida 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 Florida Limited Liability Company and Florida 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. Plus, there is a sales and use tax in Florida with a rate of 6% that can go up to 8.5% with local taxes. You can find more information about state LLC taxes on the Florida Department of Revenue website. Good news for prospective LLC owners in Florida: there is no state income tax.

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 Florida business licenses for skilled trades can be found on the Florida Department of State website. Find out the LLC Florida requirements regarding insurances, permits, or licenses you might need to obtain before you begin operating your business. 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 request more information.

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Familiarize Yourself with the State’s Taxes and Licenses

Income from pass-through entities such as a Florida Limited Liability Company and Florida 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 Florida requires all LLC owners to file an Annual Report. It is due on or before May 1 of each year, along with a fee of $150. The FL filing fee must be paid when you file. All reports must be filed online with the State of Florida Division of Corporations. If you don’t file or pay the FL Div of Corp on time, there is a $400 late fee. Filing an Annual Report is necessary for maintaining an active status after starting a business in Florida. Not filing an Annual Report or paying the fee will result in the State of Florida assuming you have an inactive LLC in Florida. This means that you will be presented a Florida 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 Florida 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 Florida requires all LLC owners to file an Annual Report. It is due on or before May 1 of each year, along with a fee of $150.

Raise Funds for Your LLC

You may want to start a free LLC in Florida, or at least a cheap LLC in Florida, but you can’t start a business with zero capital. There are legal fees, the Florida LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general Florida LLC 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.

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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 Florida Operating Agreement and ensure that you are still the primary owner of the LLC.

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Raise Funds for Your LLC

You may want to start a free LLC in Florida, or at least a cheap LLC in Florida, but you can’t start a business with zero capital. There are legal fees, the Florida LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general Florida LLC cost of operating a business.

Create a Business Website

While forming an LLC in Florida, you might want to look into getting your business online. Creating a website for your new LLC in Florida is not one of the Florida LLC formation requirements, 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 Florida LLC name requirements:

  • 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 Florida 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 Corporations, Limited Liability Companies, Limited Partnerships, and Trademarks database.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of Florida 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

While forming an LLC in Florida, you might want to look into getting your business online. Creating a website for your new LLC in Florida is not one of the Florida LLC formation requirements, but it is recommended to any business owner operating in the modern world.

Begin Operating Your Business

Once you register an LLC in Florida, 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 Florida LLC formation 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 LLC company in Florida 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 register an LLC in Florida, 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 Florida LLC formation fees.


Delaware - LLC

Learn the Benefits of an LLC

There are many benefits to setting up an LLC in Delaware. 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 Delaware is not as high as it is for a Delaware C-corp or Delaware 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 open an LLC in Delaware 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 a DE 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 Delaware Single Member LLC.

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 Delaware, the best part is the fact that it combines the l iability 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 Delaware corp.

But a State of Delaware LLC has 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 Delaware LLC does not permit this (unless you file as an S corp in Delaware). 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 Delaware.

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Learn the Benefits of an LLC

For most folks looking to start a business in Delaware, 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 Delaware LLC requirement 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 Delaware Division of Corp 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 Delaware 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 Delaware for an LLC must meet the following requirements from the Delaware Div of Corp:
  • Possess a physical street address located in Delaware (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 Delaware LLC 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 Delaware Registered Agent Service, for an LLC. 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 Delaware LLC requirement enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately.

Submit Your Certificate of Formation

As you get ready to apply for an LLC in Delaware, you will need to register your Delaware Limited Liability Company by submitting a form called the Certificate of Formation. This is one of the Delaware LLC formation documents that is necessary for the starting your Delaware LLC. The Certificate of Formation is filed with the Delaware Department 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 a Delaware Operating Agreement written out, you would include a copy of it with the Certificate of Formation. Submitting your Certificate of Formation in Delaware is a requirement.

When filing your Delaware LLC application, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of Delaware LLC forms, and long wait times whether in person or by mail--especially if you form a Delaware LLC online 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 Delaware LLC Certificate of Formation is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of Delaware.

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Submit Your Certificate of Formation

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

Obtain an Employer
Identification Number

To open an LLC in Delaware online, you are required to get 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 Delaware 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

To open an LLC in Delaware online, you are required to get 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 Delaware 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.

You may feel buried with Delaware LLC paperwork, but the Operating Agreement form is important to have in order to protect your business. The state agrees. While most states do not require an Operating Agreement, it is one of the Delaware LLC requirements to have an Operating Agreement agreed upon by all members. The rules are lax though: the Delaware LLC Agreement can be oral, written, or even implied, and it can be entered at any time during the formation of a Delaware LLC--before, during, or after. It is not filed with the Delaware Department of State. LLC owners are recommended to keep the f orm with the company’s records, along with any future amendments

You can have a lawyer look over your Delaware LLC Operating Agreement form prior to submitting it. Get the legal advice you need to protect you and familiarize yourself with Delaware LLC law with our partner, 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 Delaware 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 Delaware Limited Liability Company and Delaware 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 Delaware LLC owners need to report their LLC’s income/losses on their state income return. The state of Delaware collects income taxes with rates ranging from 0% to 6.6%. Certain cities have their own rates.

There are other various taxes an LLC must pay. For example, if you have employees, you will have to pay a withholding tax. Fortunately, Delaware does not have a state or local sales tax. Instead, the state has a gross receipts tax on any seller of goods or services within Delaware. More information on the gross receipts tax can be found on the Official Delaware Division of Revenue website.

Like most other states, Delaware taxes corporation income, which will apply to you if your LLC is classified as a C corporation. In this case, Delaware would treat the LLC as a corporation when it comes to taxes. Therefore, if your Delaware LLC files taxes as a corporation, the company itself must file a separate tax return. Delaware corporation income is taxed at 8.7%.

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. More information on Delaware licenses 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 Delaware Limited Liability Company and Delaware S corp, “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 Delaware, no annual report is necessary for LLCs. Instead, there is an annual tax of $300 that must be paid each year by June 1st. This is called the Alternative Entity Tax. There is a $200 late fee if you miss the deadline. Plus, interest accrues at a rate of 1.5% on the amount due. You can file a Delaware LLC online and pay online at the Delaware Division of Corporations.

When paying any kind of Delaware LLC fee, you may want to track all gross receipts, dividends, interest, losses, etc. 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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Keep Track of Your Financials

In Delaware, no annual report is necessary for LLCs. Instead, there is an annual tax of $300 that must be paid each year by June 1st.

Raise Funds for Your LLC

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

  • 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 Delaware LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general Delaware LLC 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 an LLC in Delaware.

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 Delaware 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 establish an LLC in Delaware, 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 Delaware 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. 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.

Begin Operating Your Business

Once you complete your DE 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 LLC Delaware company 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 for your Delaware Limited Liability Company.

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

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Begin Operating Your Business

Once you complete your DE 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 LLC Delaware company 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.


Connecticut - LLC

Learn the Benefits of an LLC

There are many benefits to setting up an LLC in CT. 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 Connecticut is not as high as it is for a CT corp or 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 CT 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 a CT 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 Connecticut.

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 CT, 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 Connecticut 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 Connecticut LLC formation does not permit this (unless you file as an S corp in Connecticut). 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 CT.

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Learn the Benefits of an LLC

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

  • 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 Connecticut 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 Connecticut 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 Connecticut 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 Connecticut for an LLC must meet the following requirements:
  • Possess a physical street address located in Connecticut (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 Connecticut 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 Connecticut 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

While establishing an LLC in CT, you will need to register an LLC in CT by submitting what is called the Certificate of Organization--a type of State of CT LLC registration form. 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 a Connecticut Limited Liability Operating Agreement form written out, you would include a copy of it with the Certificate of Organization in your records. Submitting your Certificate of Organization is one of the Connecticut LLC filing requirements and the Certificate of Organization is one of the most important State of Connecticut LLC forms you will need to file.

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

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

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Submit Your Certificate of Organization

While establishing an LLC in CT, you will need to register an LLC in CT by submitting what is called the Certificate of Organization--a type of State of CT LLC registration form.

Obtain an Employer
Identification Number

One of the Connecticut 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 Connecticut 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 Connecticut 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. A Connecticut LLC Operating Agreement form 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 Connecticut 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 CT LLC Operating Agreement form prior to submitting it. Get the legal advice you need to protect you and familiarize yourself with Connecticut 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. A Connecticut LLC Operating Agreement form 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 Connecticut Limited Liability Company and Connecticut 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. Furthermore, Mississippi has a sales and use tax. More information can be found on the Connecticut Department of Revenue Services website. Plus, Connecticut has a biennial Business Entity Tax (BET) of $250 that is due on April 15 every odd-numbered year, payable to the Department of Revenue Services. A document that contains all of the details on the BET can be found here.

Like most other states, Connecticut taxes corporation income, which will apply to you if your LLC is classified as a C corporation. In this case, Connecticut would treat the LLC as a corporation when it comes to taxes. Therefore, if your Connecticut LLC files taxes as a corporation, the company itself must file a separate Connecticut S corp 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 Connecticut licenses and permits can be found on the Business Registration and Licensing page on the Connecticut Government 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 a Connecticut Limited Liability Company and Connecticut 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 Connecticut requires all LLC owners to file a report that updates all the information that the Connecticut Secretary of State has on file. This is called the Annual Report and it is submitted every year. Each Annual Report is due by March 31 along with a fee of $20.

Connecticut LLC filing is available online on the Connecticut Secretary of State website. Filing an Annual Report is necessary for maintaining an active status after starting an LLC in CT. Not filing the report or paying the fee will result in being presented a Connecticut 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 Connecticut 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 Connecticut requires all LLC owners to file a report that updates all the information that the Connecticut Secretary of State has on file. This is called the Annual Report and it is submitted every year. Each Annual Report is due by March 31 along with a fee of $20.

Raise Funds for Your LLC

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


Colorado - LLC

Learn the Benefits of an LLC

There are many benefits to setting up your Colorado 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. The cost to set up an LLC in Colorado is not as high as it is for a Colorado corp or 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 establishing an LLC in Colorado 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 a CO 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 Colorado.

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 Colorado, 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 Colorado 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 Colorado LLC formation does not permit this (unless you file as an S corp in Colorado). 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 Colorado.

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Learn the Benefits of an LLC

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

  • 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 Colorado 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 Colorado 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 Colorado 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 Colorado for an LLC must meet the following requirements:
  • Possess a physical street address located in Colorado (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 Colorado 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 Colorado 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 setting up an LLC in Colorado, you will need to register an LLC in Colorado by submitting what is called the Articles of Organization to the Secretary of State for Colorado LLC registration. 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 a Colorado Limited Liability Operating Agreement form written out, you would include a copy of it with the Articles of Organization in your records. Submitting your Articles of Organization is one of the Colorado LLC requirements and the Articles of Organization is one of the most important State of Colorado LLC forms you will need to file.

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

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

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Submit Your Articles of Organization

While setting up an LLC in Colorado, you will need to register an LLC in Colorado by submitting what is called the Articles of Organization to the Secretary of State for Colorado LLC registration.

Obtain an Employer
Identification Number

One of the Colorado LLC 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 Colorado 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 Colorado LLC 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. A Colorado Operating Agreement form 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 LLC Operating Agreement in Colorado 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 Colorado 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 Colorado LLC Operating Agreement form prior to submitting it. Get the legal advice you need to protect you and familiarize yourself with Colorado 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. A Colorado Operating Agreement form 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 Colorado Limited Liability Company and Colorado S corp, “passes 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, the State of Colorado has a sales and use tax that anyone with a business that sells products or services must pay, an excise and fuel tax, as well as other taxes. You can view a list of business-related taxes on the Colorado Department of Revenue: Tax Division website.

Like most other states, Colorado taxes corporation income, which will apply to you if your LLC is classified as a C corporation. In this case, Colorado would treat the LLC as a corporation when it comes to taxes. Therefore, if your Colorado 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 Colorado 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. For example, if you plan to start a Denver LLC, the city of Denver has its own requirements which you can see on the Denver Government website. 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 Colorado Limited Liability Company and Colorado S corp, “passes through” the business to the owners, who are required to report this information on their personal tax returns.

File a Periodic Report

Like most states, the State of Colorado requires all LLC owners to file a report that updates all the information that the Colorado Secretary of State has on file. This is usually called an Annual Report in other states, but in Colorado, it is called a Periodic Report. Like an Annual Report, the Periodic Report is submitted every year. Periodic Reports are due by the end of the month of initial registration.

Good news for prospective LLC owners in Colorado: while some states charge over $500 as a required fee that all LLC owners must pay when submitting their Reports, Colorado requires a fee of only $10 that owners need to pay when submitting their Periodic Reports.

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

Periodic Reports can be rather complex–requiring the deciphering of gross receipts, dividends, interest, losses, and all Colorado 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 Periodic Report

Like most states, the State of Colorado requires all LLC owners to file a report that updates all the information that the Colorado 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 Colorado LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC cost in Colorado. 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 Colorado LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC cost in Colorado.

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 Colorado 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 Colorado 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 Database.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of Colorado 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

After starting an LLC business in Colorado, 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 CO 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 Colorado 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

After starting an LLC business in Colorado, 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 CO LLC fees.


Arkansas - LLC

Learn the Benefits of an LLC

There are many benefits to setting up an LLC in Arkansas. 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 form an LLC in Arkansas is not as high as it is for an Arkansas corp or 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 apply for an LLC in Arkansas 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 AR 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 Arkansas State.

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 Arkansas, 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 Arkansas 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, an Arkansas LLC formation does not permit this (unless you file as an S corp in Arkansas). 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 Arkansas.

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Learn the Benefits of an LLC

For most folks looking to start a business in Arkansas, 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 Arkansas 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 Arkansas 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 Arkansas 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 Arkansas for an LLC must meet the following requirements:
  • Possess a physical street address located in Arkansas (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 an Arkansas 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 Arkansas 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 setting up an LLC in Arkansas, you will need to register an LLC in Arkansas by submitting what is called the Articles of Organization. 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 Arkansas Limited Liability Operating Agreement form written out, you would include a copy of it with the Articles of Organization in your records. Submitting your Articles of Organization is one of the Arkansas LLC requirements and the Articles of Organization is one of the most important State of Arkansas LLC forms you will need to file.

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

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

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Submit Your Articles of Organization

While setting up an LLC in Arkansas, you will need to register an LLC in Arkansas by submitting what is called the Articles of Organization. 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.

Obtain an Employer
Identification Number

One of the Arkansas LLC 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 Arkansas business LLC 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 Arkansas LLC 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 Arkansas Operating Agreement form 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 LLC Operating Agreement in Arkansas 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 an Arkansas 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 Arkansas LLC Operating Agreement form prior to submitting it. Get the legal advice you need to protect you and familiarize yourself with Arkansas 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 Arkansas Operating Agreement form 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 an Arkansas Limited Liability Company and Arkansas S corp, “passes 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. More information on Arkansas income taxes can be found here.

There are other various taxes an LLC must also pay. For example, if you have employees, you will have to pay a withholding tax. Plus, if your business sells goods or services, you will have to pay a sales and use tax of 6.5%. Arkansas cities/municipalities can collect taxes at their own rates that can get up to 3.5%. The Arkansas Department of Finance and Administration website has more information on Arkansas taxes.

Like most other states, Arkansas taxes corporation income, which will apply to you if your LLC is classified as a corporation. In this case, Arkansas would treat the LLC as a corporation when it comes to taxes. Therefore, if your Arkansas LLC files taxes as a corporation, the company itself must file a separate tax return. The corporate income tax in Arkansas is a graduated tax based on net income with rates that range from 1% to 6.5%.

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. Find out the requirements for LLCs in the state you plan to run your business in. This pamphlet created by the Arkansas Small Business and Technology Development Center explains all permits, licenses, and local zoning regulations in Arkansas. 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 an Arkansas Limited Liability Company and Arkansas S corp, “passes through” the business to the owners, who are required to report this information on their personal tax returns.

File an Annual Franchise
Tax Report

Most states require that all LLC owners file a report that updates all the information that the Arkansas Secretary of State has on file. This report is usually called an Annual Report, but in Arkansas, it is called an Annual Franchise Tax Report. All Annual Franchise Tax Reports are due each year by May 1, along with a fee of $150 (with an additional $5 if filing online).

Arkansas LLC filing is available online or via printing and mailing the report. Instructions for both methods can be found on the Arkansas Secretary of State LLC website. Filing an Annual Franchise Tax Report is necessary for maintaining an active status after starting an LLC in Arkansas. Not filing the report or paying the fee will result in being presented an Arkansas LLC dissolution form, after which the state will dissolve your business.

Annual Franchise Tax Reports can be rather complex–requiring the deciphering of gross receipts, dividends, interest, losses, and all Arkansas 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 Franchise Tax Report

Most states require that all LLC owners file a report that updates all the information that the Arkansas Secretary of State has on file. This report is usually called an Annual Report, but in Arkansas, it is called an Annual Franchise Tax Report.

Raise Funds for Your LLC

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

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 Arkansas 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 Arkansas you will need an original name that is not in use by another LLC.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of Arkansas 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

After starting an LLC business in Arkansas, 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 AR 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 Arkansas 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

After starting an LLC business in Arkansas, 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 AR LLC fees.


Arizona - LLC

Learn the Benefits of an LLC

There are many benefits to setting up an LLC in Arizona. 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 AZ 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.

But Arizona LLCs have a few disadvantages. If LLC owners do not choose to file for a tax status as a corporation, individual members pay 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. 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 Arizona.

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Learn the Benefits of an LLC

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

  • 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 Statutory Agent

Another step necessary to register an LLC in Arizona is having a Statutory Agent on file. In most states, the “Statutory Agent” is called a “Registered Agent.” In Arizona, “Statutory Agent” is the official term that the state of uses. A Statutory Agent can be either an individual who is a resident of Arizona 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 Statutory Agent must meet the following requirements:
  • Possess a physical street address located in Arizona (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 Statutory 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. Additionally, you or the friend/family member has to be at that address during those hours. If it doesn’t work out and you have to change your agent, you’ll have to file a new form and pay a fee. An alternative you can look into is hiring a professional agent. We offer a Statutory 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 Statutory Agent

Another step necessary to register an LLC in Arizona is having a Statutory Agent on file. In most states, the “Statutory Agent” is called a “Registered Agent.”

Submit Your Articles
of Organization

As you get ready to file your LLC in Arizona, you will need to fill out a form called the Articles of Organization. Unlike businesses in many other states, the Arizona Secretary of State does not process corporations or LLCs for the state of Arizona. Anyone needing to file their Articles of Organization as a corporation or LLC will need to contact an entirely separate agency called the Arizona Corporation Commission. All LLCs are required to fill out and submit the Articles of Organization with the Arizona Corp Comm. With this form, you will also need to file a cover sheet, member/manager-structure attachment (whether your LLC will be member-managed or manager-managed), and Statutory Agent Acceptance form.

Within 60 days after the Commission has approved your LLC’s Articles of Organization, a letter will be sent to the Statutory Agent containing instructions regarding the publication of the notice of LLC formation. Arizona law states that you must publish the Articles of Organization in a newspaper of general circulation in the Arizona county where you plan to do business--for three consecutive publications. A list of acceptable newspapers per county where this publication can go out is posted on the Arizona Corporation Commission website. This is a requirement for all LLCs, with an exception granted to only a few counties, so find out whether your county is one of the few. The LLC may be forced to liquidate if it fails to publish this information in a timely manner.

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 Arizona 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 Arizona.

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Submit Your Articles of Organization

As you get ready to file your LLC in Arizona, you will need to fill out a form called the Articles of Organization.

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 Arizona 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 Arizona 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 an Operating Agreement is not always one of the legally required Arizona LLC forms, it is still extremely important to have one in order to protect your business. You can have a lawyer look over your Arizona 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 Arizona 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

Arizona LLC owners pay self-employment tax on business profits. On top of that, business owners also pay AZ state tax and federal income tax on any profits (minus allowances or deductions). Employers pay payroll tax on any salaries they pay to employees, and employees pay federal, state, and payroll tax on their earnings.

Instead of a sales tax, Arizona has a tax called Transaction Privilege Tax (TPT). A TPT is different from sales tax. Instead of taxing the buyer, the state taxes the seller on income from retail sales. Fortunately, it is legal to pass this tax on to the customer, so most businesses end up treating the TPT like a sales tax and have the customer pay it during a transaction. Arizona's tax rates vary primarily depending on personal net income (and county, so look up the specific details for your county).

You will also need to pay additional taxes, such as unemployment tax and workers’ compensation tax. Unemployment insurance tax helps unemployed individuals, and you can learn about it on the Arizona Department of Economic Security website. More information on worker’s comp is available on the Industrial Commission of Arizona’s website.

Plus, find out from your city or county if there are any permits you might need to obtain before you begin operating your business. In Arizona, most licenses and permits fall into one of the following categories:

  • State and City Transaction Privilege Tax Licenses
  • Regulatory or Professional and Special Licensing and Permits
  • Local Business/Occupational Licenses and Permits

There may be extra fees for certain AZ LLC insurances, permits, and licenses. Visit the Arizona Commerce Authority website to view a variety of permits and licenses that you may need.

To keep your business running smoothly, make sure that your company is in compliance with all the current AZ business regulations, like the Arizona new hire reporting requirements. There may be changes to what’s required, so stay up to date by checking state websites regularly. 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

Arizona LLC owners pay self-employment tax on business profits. On top of that, business owners also pay AZ state tax and federal income tax on any profits (minus allowances or deductions).

Keep Track of Your
Business Financials

A bonus for applications in Arizona--no annual report of business expenses, etc. is necessary for your LLC as it is not one of the Arizona LLC filing requirements to file an Annual Report. Still, it would greatly benefit you, as a business owner, to decipher all gross receipts, dividends, interest, losses, etc. and keep track of all Arizona LLC fees. You most likely will be busy running your business, in which case, 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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Keep Track of Your Business Financials

A bonus for applications in Arizona--no annual report of business expenses, etc. is necessary for your LLC as it is not one of the Arizona LLC filing requirements to file an Annual Report.

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, the Arizona LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general Arizona LLC 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 Arizona business 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 Arizona, 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 name database here.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of Arizona 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

One more detail and you’re done: As you get that Grand Opening sign ready, make sure you find a suitable newspaper to publish in. This is not a recommendation, it is actually Arizona law that, within 60 days of your LLC’s approval, you are required to notify the public of your LLC’s formation by publishing an ad in one newspaper for 3 consecutive publications. The newspaper must be located in the same county as your LLC. There are few counties that are granted an exception, so look into whether your business will be operating from one of those.

Now that you’ve brushed up on your AZ LLC info and have officially become an LLC, make sure you keep your LLC compliant. Remember to keep track of all important dates and keep up with all necessary 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.

Begin operating your Arizona Limited Liability Company with peace of mind, knowing that you are protected by the benefits of an LLC in case anything unforeseeable affects your new business venture.

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Begin Operating Your Business

One more detail and you’re done: As you get that Grand Opening sign ready, make sure you find a suitable newspaper to publish in.


Alabama - LLC

Learn the Benefits of an LLC

There are many benefits to setting up an LLC in Alabama. 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 in Alabama 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 AL 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 Alabama.

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 Alabama 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 Alabama 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 starting a business.

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Learn the Benefits of an LLC

For most folks looking to register an LLC in AL, 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

One of the steps of your Alabama LLC formation is deciding 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 in Alabama 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

One of the steps of your Alabama LLC formation is deciding 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 Alabama 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 Alabama 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 Alabama 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 Alabama (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 Alabama 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 Alabama 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

While forming an LLC in Alabama, you will also need to register your business by submitting a form called the Certificate of Formation--usually called the Articles of Organization in other states--to the Alabama Secretary of State (SOS). 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 in your business records. Submitting your Certificate of Formation is one of the Alabama 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 in Alabama 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 Alabama 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 Alabama.

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Submit Your Certificate of Formation

While forming an LLC in Alabama, you will also need to register your business by submitting a form called the Certificate of Formation--usually called the Articles of Organization in other states--to the Alabama Secretary of State (SOS).

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 Alabama 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 LLC Operating Agreement for an Alabama 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 your business and familiarize yourself with Alabama LLC law with the assistance of 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 Alabama 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 limited liability companies (LLCs) and S corporations “pass through” the business to the LLC 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, Alabama has a sales and use tax, as well as other taxes. See more information here.

Keep in mind that an advantage of having an LLC is its tax flexibility. LLC members can choose how the entity will be taxed--as a sole proprietorship, partnership, or C or S corporation. SMLLCs are treated the same as sole proprietorships. While it is possible to choose to have your LLC classified as a corporation, in that case, the company itself must file a separate tax return and pay a corporation income tax. The corporate tax is prone to change so look it up on the Department of Revenue website.

An Alabama LLC annual fee that every corporation, limited liability entity, and disregarded entity doing business in Alabama is required to file an Alabama Business Privilege Tax Return and Annual Report. This means that all LLCs are subject to an annual Business Privilege Tax (BPT). Plus, Alabama pass-through entities (LLCs and S corps) require an Annual Report form with the yearly tax return. Typically, the BPT is assessed based on the total amount of income passed through to the LLC members. The minimum tax is $100, paid to the Alabama Department of Revenue.

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. A list of Alabama licenses can be found here. 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 limited liability companies (LLCs) and S corporations “pass through” the business to the LLC owners, who are required to report this information on their personal tax returns.

Keep Track of Your
Business Financials

There is no annual report that is required on its own each year, but updated information on all entities is requested annually along with the business privilege tax return that you should submit every calendar year by April 15. This updates the Alabama Secretary of State of LLC structural changes and declares that your business is still in operation.

To prepare for tax season and decipher all gross receipts, dividends, interest, losses, and Alabama LLC fees, you should seek the help of an accountant to ensure that it is all 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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Keep Track of Your Business Financials

There is no annual report that is required on its own each year, but updated information on all entities is requested annually along with the business privilege tax return that you should submit every calendar year by April 15.

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 one of the Alabama LLC requirements, 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 Alabama 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 Alabama, 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 Alabama Name Availability Database.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of Alabama 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 one of the Alabama LLC requirements, but it is recommended to any business owner operating in the modern world.

Begin Operating Your Business

Once you’re finished getting an LLC in Alabama, make sure you keep your 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 Alabama 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’re finished getting an LLC in Alabama, make sure you keep your LLC compliant. Remember all important dates and make all necessary payments on time.


Alaska - LLC

Learn the Benefits of an LLC

There are many benefits to setting up an LLC in Alaska. 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 in Alaska 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 Alaska 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 Alaska.

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 Alaska 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 Alaska 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 starting a business.

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Learn the Benefits of an LLC

For most folks looking to register an LLC in AK, 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

One of the steps of creating an Alaska LLC is deciding 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 in Alaska 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

One of the steps of your Alaska LLC formation is deciding 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 Alaska 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 state. 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 Alaska 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 Alaska (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 Alaska 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 Alaska 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 Alaska, you will also need to register your business by submitting a form called the Articles of Organization to the State of Alaska Division of Corporations, Business and Professional Licensing. 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. Submitting your Articles of Organization is one of the Alaska 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 in Alaska 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 Alaska 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 Alaska.

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Submit Your Articles of Organization

While forming an LLC in Alaska, you will also need to register your business by submitting a form called the Articles of Organization to the State of Alaska Division of Corporations, Business and Professional Licensing.

Obtain an Employer
Identification Number

A part of the Alaska LLC formation process 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 an EIN in case the company grows and obtains employees or for banking purposes--in which case one will be required.

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

A part of the Alaska LLC formation process 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 Alaska 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 an Alaska LLC legal requirement 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 your business and familiarize yourself with Alaska LLC law with the assistance of 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 Alaska 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 limited liability companies (LLCs) and S corporations “passes through” the business to the LLC 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.

Keep in mind that an advantage of having an LLC is its tax flexibility. LLC members can choose how the entity will be taxed--as a sole proprietorship, partnership, or C or S corporation. SMLLCs are treated the same as sole proprietorships. While it is possible to choose to have your LLC classified as a corporation, in that case, the company itself must file a separate tax return and pay a corporation income tax. The corporate tax is prone to change so look it up on the Department of Revenue website.

One of the Alaska LLC advantages is that there is no statewide income or sales taxes. Instead, residents actually receive annual checks from the state just for living there due to the Permanent Fund Dividend. There are other taxes that are a requirement in the state of Alaska though. Self-employment taxes for an LLC’s net income are paid; plus, employers owe payroll tax on employees wages, and employees pay federal, state and payroll tax on their earnings. Furthermore, it is usually a requirement to pay state unemployment insurance taxes to Alaska's Department of Labor (DOL). More information is on the DOL website. Additional Alaska tax info can be found here.

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. 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 limited liability companies (LLCs) and S corporations “passes through” the business to the LLC owners, who are required to report this information on their personal tax returns.

File a Biennial Report

One of the State of Alaska LLC requirements is having to file an Initial Report within the first six months of creating your LLC. For the Initial Report, there is no fee, but the overall Alaska LLC cost includes a Biennial Report that costs $100 to file. This report is identical to an Annual Report, like most states require, and likewise, it updates the Alaska Secretary of State of LLC structural changes and declares that your business is still in operation. Unlike most states, Alaska does not have an actual Secretary of State though. Instead, these reports must be filed with the Department of Commerce, Community, and Economic Development (DCCED), which can be done on the DCCED website. Biennial reports are due every two years before January 2 of the filing year.

The report can be rather complex–requiring the deciphering of gross receipts, dividends, interest, losses, and all Alaska 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 Report

One of the State of Alaska LLC requirements is having to file an Initial Report within the first six months of creating your LLC.

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, the Alaska LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general Alaska LLC cost of operating a business.

Create a Business Website

Creating a website for your business is not one of the Alaska LLC requirements, 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 Alaska, 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 Alaska Name Availability Database.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of Alaska 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 one of the Alaska LLC requirements, but it is recommended to any business owner operating in the modern world.

Begin Operating Your Business

Once you’re finished getting an LLC in Alaska, make sure you keep your 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 Alaska 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’re finished getting an LLC in Alaska, make sure you keep your LLC compliant. Remember all important dates and make all necessary payments on time.


California - LLC

Learn the Benefits of Creating an LLC

There are many ts to setting up your business as an LLC. LLCs not only have more taxoptions, 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 California 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 CA 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.

LLCs have one significant disadvantage. The IRS and the State of California’s Franchise Tax Board consider LLC members as self-employed. As a result, they each must pay the self-employment tax contributions towards Medicare and Social Security. The entire net income of the LLC is subject to this tax. Despite this disadvantage, 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
step1/11

Learn the Benefits of Creating an LLC

Forming a Limited Liability Company (LLC) is the easiest and most flexible way to start your business in California. An LLC can offer personal asset protection, management flexibility, pass-through taxation, and minimal compliance requirements.

All of these reasons make LLCs a popular choice for people who are starting a business in California.

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 - 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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step2/11

Assign Member Roles

You need to decide whether you want to run a single-member LLC or a multi-member LLC and what responsibilities each member will have.

You also need to choose an LLC management structure for your business in California. Do you want to run a member-managed LLC where all members will play active roles in business operations and decision-making? Or, do you want to run a manager-managed LLC where only the manager can make authoritative decisions?

Decide on a Registered Agent

Next, figure out who the Registered Agent for the LLC should be. The California 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.

Generally speaking, a Registered Agent must meet the following requirements:
  • Possess a physical street address located in California (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 California Registered Agent Service, also known as a Commercial Registered Agent. We offer a Registered Agent Service for a small charge that you can include as an add-on to your shopping cart.

three
step3/11

Decide on a Registered Agent for Your LLC

The California Secretary of State requires that every LLC in the state has a Registered Agent. This is to ensure that the state can ensure the delivery of all legal mail and track court documents. We can provide one for a small fee.

Submit Your Articles
of Organization

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

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Submit Your Articles of Organization

You need to submit the Articles of Organization (Form LLC-1) that includes details needed to form your LLC in California - your company’s name, address, structure.

Once your submitted Articles of Organization are accepted, your company will be legally ready to operate and do business within the state of California.

Obtain an Employer
Identification Number

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

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

three
step5/11

Obtain an Employer Identification Number (EIN)

The Federal Employer Identification Number (EIN) is a 9-digit number assigned to LLCs and other kinds of businesses for tax filing and other operational purposes. Obtaining an EIN is extremely important for paying taxes, hiring employees, and even opening a bank account for your LLC.

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 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).

While it is not one of the California LLC requirements to have an Operating Agreement it is still a good idea to have one. You may be buried with California LLC paperwork, but form is important to have 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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step6/11

Create an LLC Operating Agreement

This is the foundational backbone of a new business. An LLC Operating Agreement is a necessary legal document that determines the financial and working relationships among owners, managers, and other members.

Familiarize Yourself with the
State’s Taxes and Licenses

The State of California requires all LLCs to pay an annual Franchise Tax of a minimum of $800 (whether or not your LLC had any activity or revenue that year). This payment is not income tax, but rather the price every LLC must pay each year as the cost of doing business in California. Keep in mind that the first payment is due three and a half months after your LLC is approved--which means if your LLC is approved on March 1, your Franchise Tax fee is due on June 15.

Plus, there is an LLC fee, which increases as the LLC’s revenue goes up. There are a few exceptions, such as when an LLC chooses to be taxed as an S corporation. Brush up on CA’s taxes so that you knowledgeable about all fees that you may be required to pay.

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. 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.

seven
step7/11

Familiarize Yourself with California Taxes & Licenses

The State of California needs all LLCs to pay an annual Franchise tax of a minimum of $800 for doing business in California. Your first tax is due three and a half months after your LLC is approved.

Submit Your Statement
of Information

The State of California requires all LLCs to file a report called a Statement of Information. While most states require an annual report, to be submitted annually, it is different for California. The Statement of Information form must be submitted within 90 days of your LLC being approved, and then every 2 years for the lifetime of your LLC.

This particular form is intended to keep your California LLC’s contact information current with the Secretary of State. You can file the report online at the Secretary of State website. It asks some information on your LLC, particularly regarding any necessary updates that were made during the past year. 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– sometimes 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. But it’s not over yet.

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step8/11

Submit Your Statement of Information

The state of California requires all LLCs to file a Statement of Information form within 90 days of your LLC formation and then every two years thereafter. This is to ensure that your California LLC’s contact information is up-to-date with the Secretary of State.

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.

nine
step9/11

Raise Funds for Your LLC in California

To start your LLC in California, you will need capital to take care of legal fees, document filing fees, taxes, employees pay, and operational costs.

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.

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 trips:

  • 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 forming an LLC in the State of California, you will need an original name that is not in use by another LLC. Fortunately, the state has made this part of the process easier; you can search California’s online database of LLC names to see if your preferred company name has already been taken. Or you can request a name’s availability by mailing a completed Name Availability Inquiry Letter to the California Secretary of State’s office. Additionally, you can reserve a name for up to 60 days for $10. This would require filling out a Name Reservation Request form and sending it by mail or dropping it off in person.
  • Make sure it is available as a web domain. This way, you can find out if another company outside of California (and therefore not on the database) 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
step10/11

Create a Business Website for Your LLC

Though it is not a legal requirement, every business operating in the modern world should have a business website. It is necessary to build an online presence for your business and get people to trust your brand.

Begin Operating Your Business

Once you have finished setting up an LLC in California, make sure you keep your state of CA 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 California 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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step11/11

Start Operating Your LLC Business

Once your LLC is approved, you can begin operating your business in California. You will have to file an annual report and keep up with your quarterly tax payments. You can also hire a professional to send you alerts about your filing deadlines.

Our LLC Formation Packages for Businesses in California

Starting an LLC in California has never been easier.

We provide reliable, easy, quick, and cost-effective LLC formation packages to freelancers, consultants, startups, small businesses, and anyone who needs one.

We are a small business ourselves, and we have curated the process to give new businesses the essentials they need to start out without constant additional upselling of other products and services they do not need.

We have a unique LLC formation package that includes all the essentials. Launch your business successfully with GovDocFiling.

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Why Choose GovDocFiling?

GovDocFiling is a small business. We’ve been where you are, and know exactly what you need and the mistakes to avoid.

Here’s what makes us stand out from the other LLC registration solutions out there:

  • More value for your money. Expedited processing without any additional cost.
  • A simplified process. Fill out one simple form that covers all the information we need for Federal EIN/Tax ID filing & LLC formation.
  • Five essential legal documents for your business operations (written by lawyers) for FREE in our LLC formation package.
  • A step-by-step guide to legally starting, maintaining compliance, and growing a business, including starting an LLC in California.
  • Discounts to vetted and curated partners that offer common LLC business services such as accounting, credit card processing, and bookkeeping.
  • Free tax-saving analysis.
  • Cashback on business bank accounts with Chase and Bank of America.

So, what are you waiting for?

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Our LLC filing packages include:

  • Filing for State Articles of Organization, Federal Employer Identification Number (EIN)/Tax ID Number from the IRS
  • Single & Multi-Member LLC Operating Agreement
  • 5 Essential Legal Documents
    • Mutual Non-Disclosure Agreement
    • Unilateral Non-Disclosure Agreement
    • Independent Contractor Agreement
    • Employee Agreement
    • Confidentiality Agreement
  • Free Business Start Up Guide with over $3K in potential savings

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Our LLC Formation Package + Pricing

GovDocFiling is committed to processing your LLC formation application quickly, securely, and accurately. We offer expedited processing without any additional costs, whereas many other filing solutions upsell this service.

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Quick & easy California LLC registration