South Dakota - LLC
Learn the Benefits of an LLC
There are many benefits to setting up an LLC in South Dakota. 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 South Dakota LLC cost is not as high as it is for a South Dakota corp or South Dakota S-corp.
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 SD 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.
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
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 South Dakota 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 South Dakota.
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 South Dakota, 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 South Dakota 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 South Dakota LLC does not permit this (unless you file as an S corp in South Dakota). 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 South Dakota.
Learn the Benefits of an LLC
For most folks looking to start a business in South Dakota, 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.
- 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.
If you know your South Dakota 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.
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 South Dakota 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 South Dakota 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 South Dakota 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.
- Possess a physical street address located in South Dakota (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 South Dakota 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.
Decide on a Registered Agent
Next, figure out who the Registered Agent for the LLC should be. The State of South Dakota 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 South Dakota, you will need to register your South Dakota Limited Liability Company by submitting a form called the Articles of Organization. The Articles of Organization are filed with the South Dakota Secretary of State. The form includes information such as the LLC's name and address, the Registered Agent’s information, whether the LLC is run by managers or members, etc. If you also have an Operating Agreement written out, you would include a copy of it with the Articles of Organization. Submitting your Articles of Organization form in South Dakota is a requirement.
When filing your South Dakota LLC application, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of South Dakota LLC forms, and long wait times whether in person or by mail--especially if you happen to register an LLC in SD 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 South Dakota LLC Articles of Organization form is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of South Dakota.
Submit Your Articles of Organization
As you get ready to apply for an LLC in South Dakota, you will need to register your South Dakota Limited Liability Company by submitting a form called the Articles of Organization.
Obtain an Employer
Identification Number
One of the South Dakota 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 South Dakota 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.
Obtain an Employer Identification Number
One of the South Dakota 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 South Dakota 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 one of the South Dakota LLC requirements to have an Operating Agreement, it is still extremely important to have one in order to protect your business.
You can have a lawyer look over your South Dakota LLC Operating Agreement form prior to submitting it. Get the legal advice you need to protect you and familiarize yourself with South Dakota LLC law with our partner Rocket Lawyer.Your company is responsible for maintaining copies of the Operating Agreement.
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 South Dakota 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 South Dakota Limited Liability Companies and South Dakota S corps “pass through” the business to the owners, who are required to report this information on their personal tax returns. Each individual LLC member will then have to pay taxes on his or her share of the LLC’s income. The LLC itself does not pay federal income taxes, but some states do charge the LLC other various taxes. For example, South Dakota has a Sales Tax, Use Tax, Contractor's Excise Tax, Municipal Sales and Gross Receipts tax, and more. More tax-related information can be found on the South Dakota Department of Revenue (SD DOR) website.
Good news for prospective business owners in South Dakota: the state is one of the few states that does not have a personal income tax or a corporation income tax. Therefore, members typically do not owe state tax on income they earn from a South Dakota LLC.
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, real estate licenses, etc. Information on South Dakota licenses can be found on the Department of Labor and Regulation (DLR) website. Find out what the requirements are for the location where you plan to open your business. Contact your city or county to see if there are any insurances, permits, or licenses you might need to obtain before you begin operating your business.
Familiarize Yourself with the State’s Taxes and Licenses
Income from pass-through entities such as South Dakota Limited Liability Companies and South Dakota S corps “pass through” the business to the owners, who are required to report this information on their personal tax returns.
File an Annual Report
Like most states, the State of South Dakota requires all LLC owners to file a yearly report that updates all the information that the South Dakota Secretary of State has on file. This report is typically called the Annual Report. It is due by the first day of the registration anniversary month, meaning if you started your business on March 15, then your annual report is due every year by March 1. You must include a filing fee of $50 with your report, payable to the South Dakota Secretary of State. Online filing for Annual Reports can be done here. Filing an Annual Report is necessary for maintaining an active status after starting an LLC in South Dakota. Not filing the report or paying the fee will result in being presented a South Dakota 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 South Dakota 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.
File an Annual Report
Like most states, the State of South Dakota requires all LLC owners to file a yearly report that updates all the information that the South Dakota 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 South Dakota LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC in South Dakota 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
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.
Raise Funds for Your LLC
You can’t start a business with zero capital. There are legal fees, the South Dakota LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC in South Dakota 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 formationIf 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
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 South Dakota 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 South Dakota 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 try the Name Availability Search. If you are not ready to file an LLC in South Dakota today but want to reserve a name in the meantime, you can do so by filling out the form (and paying a $25 fee) here. This puts a hold on the name for 120 days.
- Make sure it is available as a web domain. This way, you can find out if another company outside of South Dakota has a business with the same name. In that case, think of something more original.
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 South Dakota 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 South Dakota 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 South Dakota with peace of mind, knowing that you are protected by an LLC in case anything unforeseeable affects your new business venture.
Begin Operating Your Business
Once you complete your South Dakota 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 South Dakota LLC fees.
South Carolina - LLC
Learn the Benefits of an LLC
There are many benefits to setting up an LLC in South Carolina. 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 South Carolina LLC cost is not as high as it is for a South Carolina corp or South Carolina S-corp.
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 S 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.
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 NowBesides 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 South Carolina 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 South Carolina.
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 South Carolina, 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 South Carolina 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 South Carolina LLC does not permit this (unless you file as an S corp in South Carolina). 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 South Carolina.
Learn the Benefits of an LLC
For most folks looking to start a business in South Carolina, 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.
- 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.
If you know your South Carolina 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.
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 South Carolina 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 South Carolina 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 South Carolina 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.
- Possess a physical street address located in South Carolina (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 South Carolina 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.
Decide on a Registered Agent
Next, figure out who the Registered Agent for the LLC should be. The State of South Carolina 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 SC, you will also need to register your South Carolina Limited Liability Company by submitting a form called the Articles of Organization to the South Carolina 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 Articles of Organization. Submitting your Articles of Organization is one of the South Carolina filing requirements.
If filing on your own, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of forms, and long wait times whether in person or by mail--especially if you’re filing for an LLC during peak season. GovDocFiling can speed up the process for you. We offer an easy online application, expedited pricing, and a free business start-up guide and resources with all filings. You can apply here today.
Once your completed South Carolina LLC Articles of Organization form is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of South Carolina.
Submit Your Articles of Organization
As you get ready to apply for an LLC in South Carolina, you will need to register your South Carolina Limited Liability Company by submitting a form called the Articles of Organization.
Obtain an Employer
Identification Number
One of the South Carolina 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 South Carolina 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.
Obtain an Employer Identification Number
One of the South Carolina 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 South Carolina 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 one of the South Carolina LLC requirements to have an Operating Agreement, it is still extremely important to have one in order to protect your business.
You can have a lawyer look over your South Carolina LLC Operating Agreement form prior to submitting it. Get the legal advice you need to protect you and familiarize yourself with South Carolina LLC law with our partner Rocket Lawyer.Your company is responsible for maintaining copies of the Operating Agreement.
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 South Carolina 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.
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 income tax rate for traditional (C) corporations is 5% on all South Carolina taxable income.
Additionally, most businesses in SC have to pay a sales tax on products. Self-employment taxes for a South Carolina LLC’s net income are paid as well. 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 South Carolina's Department of Employment & Workforce (DEW). More information is on the DEW website.
In addition, there may be extra fees for certain insurances, permits, and licenses. For example, you may need worker’s compensation insurance or a building permit, depending on the state’s laws and the type of business you own. Find out the requirements for LLCs in the state you plan to run your business in. The South Carolina Department of Labor, Licensing and Regulation website has more information. For a breakdown of requirements per profession, visit the South Carolina Division of Professional and Occupational Licensing Boards. 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.
Familiarize Yourself with the State’s Taxes and Licenses
Income from pass-through entities such as South Carolina Limited Liability Companies and South Carolina S corps “pass through” the business to the owners, who are required to report this information on their personal tax returns.
Keep Track of Your Business Financials
While most states require an Annual Report, a South Carolina corporation doesn’t have to file an Annual Report unless it elects to be taxed as an S corp. While an Initial Annual Report is due with the Articles of Organization (along with a $25 fee), LLC applications in South Carolina do not require annual reports of business expenses each year. It is not one of the South Carolina LLC filing requirements to file an Annual Report with the Secretary of State (SOS) or Department of Revenue (DOR).
Still, it would greatly benefit you, as a business owner, to decipher all gross receipts, dividends, interest, losses, etc. and keep track of all South Carolina 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 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.
Keep Track of Your Business Financials
While most states require an Annual Report, a South Carolina corporation doesn’t have to file an Annual Report unless it elects to be taxed as an S corp.
Raise Funds for Your LLC
You can’t start a business with zero capital. There are legal fees, the South Carolina LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC in South Carolina 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
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.
Raise Funds for Your LLC
You can’t start a business with zero capital. There are legal fees, the South Carolina LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC in South Carolina 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 formationIf 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
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 South Carolina 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 South Carolina, 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 South Carolina Name Availability Database.
- Make sure it is available as a web domain. This way, you can find out if another company outside of South Carolina has a business with the same name. In that case, think of something more original.
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 South Carolina 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 South Carolina 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 South Carolina with peace of mind, knowing that you are protected by an LLC in case anything unforeseeable affects your new business venture.
Begin Operating Your Business
Once you complete your South Carolina 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 South Carolina LLC fees.
Rhode Island - LLC
Learn the Benefits of an LLC
There are many benefits to setting up an LLC in Rhode Island. 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 Rhode Island LLC cost is not as high as it is for a Rhode Island C-corp or Rhode Island S-corp.
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 RI 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.
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 NowBesides 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 Rhode Island 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 Rhode Island.
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 Rhode Island, 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 Rhode Island 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 Rhode Island LLC does not permit this (unless you file as an S corp in Rhode Island). 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 Rhode Island.
Learn the Benefits of an LLC
For most folks looking to start a business in Rhode Island, 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.
- 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.
If you know your Rhode Island 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.
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 Rhode Island 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 Rhode Island 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 Rhode Island 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.
- Possess a physical street address located in Rhode Island (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 Rhode Island 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.
Decide on a Registered Agent
Next, figure out who the Registered Agent for the LLC should be. The State of Rhode Island 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 RI, you will need to register your Rhode Island Limited Liability Company by submitting a form called the Articles of Organization. The Articles of Organization are filed with the Rhode Island Secretary of State. The form includes information such as the LLC's name and address, the Registered Agent’s information, whether the LLC is run by managers or members, etc. If you also have an Operating Agreement written out, you would include a copy of it with the Articles of Organization. Submitting your Articles of Organization form in Rhode Island is a requirement.
When filing your Rhode Island LLC application, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of Rhode Island LLC forms, and long wait times whether in person or by mail--especially if you happen to register an LLC in Rhode Island 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 Rhode Island LLC Articles of Organization form is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of Rhode Island.
Submit Your Articles of Organization
As you get ready to apply for an LLC in RI, you will need to register your Rhode Island Limited Liability Company by submitting a form called the Articles of Organization. The Articles of Organization are filed with the Rhode Island Secretary of State.
Obtain an Employer
Identification Number
One of the Rhode Island 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 Rhode Island 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.
Obtain an Employer Identification Number
One of the Rhode Island 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 Rhode Island 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 one of the Rhode Island LLC requirements to have an Operating Agreement, it is still extremely important to have one in order to protect your business.
You can have a lawyer look over your Rhode Island LLC Operating Agreement form prior to submitting it. Get the legal advice you need to protect you and familiarize yourself with Rhode Island LLC law with our partner Rocket Lawyer.Your company is responsible for maintaining copies of the Operating Agreement.
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 Rhode Island 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 Rhode Island Limited Liability Companies and Rhode Island S corps “pass through” the business to the owners, who are required to report this information on their personal tax returns. Each individual LLC member will then have to pay taxes on his or her share of the LLC’s income. The LLC itself does not pay federal income taxes, but some states do charge the LLC other various taxes. For example, employers owe payroll tax on employees wages. Additionally, Rhode Island has a sales tax for businesses that sell, rent or lease taxable tangible personal property at retail in the state of Rhode Island. Rhode Island’s personal income tax rates are progressive, ranging from 3.75% to 5.99%. For more information on Rhode Island taxes, visit the Rhode Island Division of Taxation.
Like most other states, Rhode Island taxes corporation income, which will apply to you if your LLC is classified as a C corporation. In this case, Rhode Island would treat the LLC as a corporation when it comes to taxes. Therefore, if your State of Rhode Island LLC files taxes as a corporation, the company itself must file a separate tax return. In that case, the LLC would also be required to pay Rhode Island’s business corporate tax. Rhode Island C corporation income is taxed at a flat rate of 7.0%, and the minimum business corporation tax is $400.
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, retail sales permits, etc. Most Rhode Island licenses can be found here Find out what the requirements are for the location where you plan to open your Rhode Island 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.
Familiarize Yourself with the State’s Taxes and Licenses
Income from pass-through entities such as Rhode Island Limited Liability Companies and Rhode Island S corps “pass through” the business to the owners, who are required to report this information on their personal tax returns.
File an Annual Report
It is required by the State of Rhode Island for LLC owners to file a yearly report that updates all the information that the RI Secretary of State has on file. This report is typically called the Annual Report. It is due by November 1--you can start filing on September 1--along with a fee of $50, payable to the Rhode Island Secretary of State. You can file online on the Rhode Island Secretary of State website. You can also use the same website to download the paper form if you do not prefer to file online. Filing an Annual Report is necessary for maintaining an active status after starting an LLC in Rhode Island. Not filing the report or paying the fee will result in being presented a Rhode Island 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 Rhode Island 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.
File an Annual Report
It is required by the State of Rhode Island for LLC owners to file a yearly report that updates all the information that the RI 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 Rhode Island LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC in Rhode Island 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
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.
Raise Funds for Your LLC
You can’t start a business with zero capital. There are legal fees, the Rhode Island LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC in Rhode Island 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 formationIf 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
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 Rhode Island 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 Rhode Island 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 Rhode Island has a business with the same name. In that case, think of something more original.
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 Rhode Island 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 Rhode Island 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 Rhode Island with peace of mind, knowing that you are protected by an LLC in case anything unforeseeable affects your new business venture.
Begin Operating Your Business
Once you complete your Rhode Island 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 Rhode Island LLC fees.
Pennsylvania - LLC
Learn the Benefits of an LLC
There are many benefits to setting up an LLC in PA. 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 PA LLC cost is not as high as it is for a PA corp or S corp.
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 PA 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.
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 NowBesides 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 Pennsylvania 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 Pennsylvania.
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 PA, 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 Pennsylvania 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 Pennsylvania LLC does not permit this (unless you file as an S corp in Pennsylvania). 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 PA.
Learn the Benefits of an LLC
For most folks looking to start a business in Pennsylvania, 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.
- 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.
If you know your PA 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.
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 Office for the LLC should be. This is what most states call a Registered Agent. The State of Pennsylvania 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 Office will also act as the contact point between the Pennsylvania Department of State and the LLC. Once you assign an address to your Registered Office, it will be used to receive official correspondence and documents on behalf of your business.
A Registered Office can be either an individual who is a resident of Pennsylvania 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.
- Possess a physical street address located in Pennsylvania (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 Pennsylvania 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.
Decide on a Registered Agent
Next, figure out who the Registered Office for the LLC should be. This is what most states call a Registered Agent. The State of Pennsylvania 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 PA, you will need to register your Pennsylvania Limited Liability Company by submitting a form called the Certificate of Organization. The Certificate of Organization is filed with the Pennsylvania Department of State. The form includes information such as the LLC's name and address, the Registered Office’s information, whether the LLC is run by managers or members, etc. If you also have a PA LLC Operating Agreement form written out, you would include a copy of it with the Certificate of Organization. Submitting your Certificate of Organization form in Pennsylvania is a requirement.
When establishing an LLC in PA, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of Pennsylvania LLC forms, and long wait times whether in person or by mail--especially if you happen to register an LLC in PA 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 Pennsylvania LLC Certificate of Organization form is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of Pennsylvanias.
Submit Your Articles of Organization
As you get ready to apply for an LLC in PA, you will need to register your Pennsylvania Limited Liability Company by submitting a form called the Certificate of Organization. The Certificate of Organization is filed with the Pennsylvania Department of State.
Obtain an Employer
Identification Number
One of the Pennsylvania 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 Pennsylvania 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.
Obtain an Employer Identification Number
One of the Pennsylvania 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 Pennsylvania 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 one of the Pennsylvania LLC requirements to have an Operating Agreement, it is still extremely important to have one in order to protect your business.
You can have a lawyer look over your Pennsylvania LLC Operating Agreement form prior to submitting it. Get the legal advice you need to protect you and familiarize yourself with Pennsylvania LLC law with our partner Rocket Lawyer.Your company is responsible for maintaining copies of the Operating Agreement.
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 Pennsylvania 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 Pennsylvania Limited Liability Company or a Pennsylvania 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. For example, employers owe payroll tax on employees wages. Additionally, Pennsylvania has a sales and use tax, as well as other taxes. Pennsylvania’s personal income tax rate is 3.07%, but this can change. Both Pennsylvania corporations and Pennsylvania Limited Liability Companies are required to pay capital stock/foreign franchise tax. For more information on Pennsylvania taxes, visit the Commonwealth of Pennsylvania website.
Like most other states, Pennsylvania taxes corporation income, which will apply to you if your LLC is classified as a C corporation. In this case, Pennsylvania would treat the LLC as a corporation when it comes to taxes. Therefore, if your State of Pennsylvania 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. Pennsylvania has a handy Local Registrations, Permits, Zoning feature on the Pennsylvania Government website which, when you type in your LLC’s address, will tell you which additional requirements there are for the location where you plan to open your Pennsylvania business.
Familiarize Yourself with the State’s Taxes and Licenses
Income from pass-through entities, such as a Pennsylvania Limited Liability Company or a Pennsylvania 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 Report
ILLC owners are typically required to submit a report that updates all the information that the Secretary of State (SOS) has on file so that business names that are no longer in use may be placed back into the stream of commerce. This report is usually called the Annual Report, it is usually submitted yearly to the SOS in most states. In Pennsylvania, it is called the Decennial Report, and it is filed every ten years only during the years that end with the number one (for example, 2001, 2011, 2021). It is due by May 15 during those years along with a PA filing fee of $70 payable to the PA Department of State (not the SOS). There isn’t an online filing option at the moment. Instead, you can print the form here.
Filing a Decennial Report is necessary for maintaining an active status after starting an LLC in PA. Not filing the report or paying the fee will result in being presented a Pennsylvania 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 Pennsylvania 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.
File an Annual Report
LLC owners are typically required to submit a report that updates all the information that the Secretary of State (SOS) has on file so that business names that are no longer in use may be placed back into the stream of commerce.
Raise Funds for Your LLC
You can’t start a business with zero capital. There is the general Pennsylvania LLC cost to form an LLC in Pennsylvania, 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
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.
Raise Funds for Your LLC
You can’t start a business with zero capital. There is the general Pennsylvania LLC cost to form an LLC in Pennsylvania, 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 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 formationIf 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
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 Pennsylvania 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 Pennsylvania 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 Pennsylvania has a business with the same name. In that case, think of something more original.
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 PA 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 Pennsylvania 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 PA SOS, and making payments.
You can begin operating your business in Pennsylvania with peace of mind, knowing that you are protected by an LLC in case anything unforeseeable affects your new business venture.
Begin Operating Your Business
Once you complete your PA 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 Pennsylvania LLC fees.
Oregon - LLC
Learn the Benefits of an LLC
There are many benefits to setting up your business as an Oregon 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.
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.
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 NowBesides 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 OR LLC with multiple members is that the members decide how to report profits and losses for tax purposes and have several options as to how they prefer to be taxed.
For federal tax purposes, if you’re the sole member of an LLC, your business is treated as a disregarded entity. This means that although you and your business are separate entities, the SMLLC’s income and expenses are reported on the owner’s personal tax return rather than an SMLLC tax return, and the IRS ignores the SMLLC’s status as a business entity. However, for purposes of employment tax and certain excise taxes, an SMLLC is still considered a separate entity. The way a sole proprietorship is taxed is the IRS’ default option for an SMLLC.
In contrast, a corporation only has two choices: S corporation or C corporation.. A business operated as a sole proprietorship or a partnership also doesn’t have an option as to how it will be taxed.
The best part of opening an LLC in Oregon 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 Oregon 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 Oregon LLC does not permit this (unless you file as an Oregon 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 an LLC in Oregon.
Learn the Benefits of an LLC
For most folks looking to start a business in Oregon, 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.
- 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.
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.
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 Oregon 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 Oregon Secretary of State (SOS) and your Oregon 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 Oregon 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.
- Possess a physical street address located in Oregon (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 Oregon 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.
Decide on a Registered Agent
Next, figure out who the Registered Agent for the LLC should be. The State of Oregon 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 Oregon, you will also need to register your Oregon Limited Liability Company by submitting a form called the Articles of Organization. The Articles of Organization are filed with the Oregon Secretary of State. The form includes information such as the LLC's name and address, the Registered Agent’s information, whether the LLC is run by managers or members, etc. If you also have an Operating Agreement written out, you would include a copy of it with the Articles of Organization. Submitting your Articles of Organization is one of the Oregon LLC filing requirements.
If filing on your own, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of forms, and long wait times whether in person or by mail--especially if you’re filing for an LLC during peak season. GovDocFiling can speed up the process for you. We offer an easy online application, expedited pricing, and a free business start-up guide and resources with all filings. You can apply here today.
Once your completed Oregon LLC Articles of Organization form is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of Oregon.
Submit Your Articles of Organization
While forming an LLC in Oregon, you will also need to register your Oregon Limited Liability Company by submitting a form called the Articles of Organization. The Articles of Organization are filed with the Oregon Secretary of State.
Obtain an Employer
Identification Number
The next part to setting up an LLC in Oregon 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 Oregon 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.
Obtain an Employer Identification Number
The next part to setting up an LLC in Oregon 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 Oregon 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 one of the Oregon LLC requirements to have an Operating Agreement, it is still extremely important to have one in order to protect your business. You can have a lawyer look over your Oregon 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.
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 Oregon 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 Oregon Limited Liability Companies (LLCs) and Oregon S corps “pass through” the business to the owners, who are required to report this information on their personal tax returns. Each individual LLC member will then have to pay taxes on his or her share of the LLC’s income. The LLC itself does not pay federal income taxes, but if you are an Oregon LLC owner, you need to report your LLC’s income/losses on your state income return.
There are also other various taxes that an Oregon business may have to pay. For example, employers owe payroll tax on their employees’ wages. Good news for prospective business owners in Oregon: the state of Oregon does not have a sales tax. More Oregon tax info can be found on the Oregon Business Xpress website.
Like most other states, Oregon taxes corporation income, which will apply to you if your LLC is classified as a C corporation. In this case, Oregon would treat the LLC as a corporation when it comes to taxes. Therefore, if your Oregon LLC files taxes as a corporation, the company itself must file a separate tax return.
You can also choose to classify your business as an Oregon S corp in order to save money on self-employment taxes. In this situation, you would need to ensure that your Oregon LLC’s net income is approximately $70,000 per year (per member). At this net income level, the costs of maintaining the Oregon S corporation tax election for the LLC are offset by the self-employment tax savings.
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 Oregon permits and 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.
Familiarize Yourself with the State’s Taxes and Licenses
Income from pass-through entities such as Oregon Limited Liability Companies (LLCs) and Oregon S corps “pass through” the business to the owners, who are required to report this information on their personal tax returns.
File an Annual Report
Like most states, the State of Oregon requires all LLC owners to file a report that updates all the information that the Oregon Secretary of State (SOS) has on file. This is called an Annual Report and it is due every year, with the initial report due the year following the year of formation of your Oregon LLC. A fee of $100 payable to the Oregon Secretary of State Business Registry must accompany the form. You can file online on the Oregon SOS LLC website. Filing this form is necessary for maintaining an active business status. Not filing the report or paying the fee will result in being presented an Oregon LLC dissolution form, after which the state will dissolve your business.
The report can be rather complex–requiring the deciphering of gross receipts, dividends, interest, losses etc.–and you should seek the help of an accountant to ensure that it is filled out properly. Our partner, Bench, will provide you with a team of accountants to help you with your franchise tax reports, as well as general bookkeeping services with monthly financial statements and intuitive software to monitor your business profits and expenses.
File an Annual Report
Like most states, the State of Oregon requires all LLC owners to file a report that updates all the information that the Oregon Secretary of State (SOS) has on file.
Raise Funds for Your LLC
You can’t start a business with zero capital. There are legal fees, document filing fees, taxes, employees to pay if you are not an SMLLC, as well as the general Oregon 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
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.
Raise Funds for Your LLC
You can’t start a business with zero capital. There are legal fees, document filing fees, taxes, employees to pay if you are not an SMLLC, as well as the general Oregon 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 formationIf 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
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 Oregon 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 registering an LLC in Oregon, 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 Oregon Business Name Availability Check Database.
- Make sure it is available as a web domain. This way, you can find out if another company outside of Oregon has a business with the same name. In that case, think of something more original..
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 Oregon 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 Oregon 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 Oregon with peace of mind, knowing that you are protected by an LLC in case anything unforeseeable affects your new business venture.
Begin Operating Your Business
Once you complete your Oregon 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 Oregon LLC fees.
Oklahoma - LLC
Learn the Benefits of an LLC
There are many benefits to setting up an LLC in Oklahoma. 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 Oklahoma is not as high as it is for an OK corp or S corp.
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 OK 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.
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 NowBesides 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 OK 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 Oklahoma.
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 Oklahoma, the best part is the fact that it combines the liability protection of an Oklahoma corp with the tax treatment of any of the above business entities. Plus, it is easier to set up than a corporation.
But Oklahoma 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 Oklahoma LLC formation does not permit this (unless you file as an S corp in Oklahoma). 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 Oklahoma.
Learn the Benefits of an LLC
For most folks looking to start a business in Oklahoma, 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.
- 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.
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.
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 Oklahoma 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 Oklahoma 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 Oklahoma 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.
- Possess a physical street address located in Oklahoma (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 Oklahoma 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.
Decide on a Registered Agent
Next, figure out who the Registered Agent for the LLC should be. The State of Oklahoma 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 establishing an LLC in Oklahoma, you will need to register an LLC in Oklahoma by submitting what is called the Articles of Organization--a type of Oklahoma State LLC registration form. The Articles of Organization are filed with the Secretary of State for Oklahoma 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 an Oklahoma 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 Oklahoma LLC filing requirements and the Articles of Organization is one of the most important State of Oklahoma LLC forms you will need to file.
When filing your Oklahoma LLC application, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of Oklahoma LLC forms, and long wait times whether in person or by mail--especially if you’re filing for an LLC in Oklahoma online during peak season. GovDocFiling can speed up the process for you. We can help you form an Oklahoma 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 Oklahoma LLC form is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of Oklahoma.
Submit Your Articles of Organization
While establishing an LLC in Oklahoma, you will need to register an LLC in Oklahoma by submitting what is called the Articles of Organization--a type of Oklahoma State LLC registration form. The Articles of Organization are filed with the Secretary of State for Oklahoma LLC registration.
Obtain an Employer
Identification Number
One of the Oklahoma 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 Oklahoma 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.
Obtain an Employer Identification Number
One of the Oklahoma 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 Oklahoma 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 an Oklahoma 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 Oklahoma LLC Operating Agreement form prior to submitting it. Get the legal advice you need to protect you and familiarize yourself with Oklahoma LLC law with our partner, Rocket Lawyer. Your company is responsible for maintaining copies of the Operating Agreement.
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 Oklahoma 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 Oklahoma Limited Liability Company and Oklahoma 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.
Some states also charge the LLC other various taxes. For example, Oklahoma has a sales and use tax. Currently, the sales tax rate is 4.5%, but it varies depending on the city or county. The Cleveland County sales tax rate is 0%. The Oklahoma Tax Commission website has more information on Oklahoma taxes.
Like most other states, Oklahoma taxes corporation income, which will apply to you if your LLC is classified as a C corporation. In this case, Oklahoma would treat the LLC as a corporation when it comes to taxes. Therefore, if your Oklahoma LLC files taxes as a corporation, the company itself must file a separate tax return. The State of Oklahoma has a corporation income tax of 6% of Oklahoma taxable income.
n 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. Depending on your type of business, you may need worker’s compensation, unemployment insurance, building permits, etc. In Oklahoma, for example, LLC businesses that sell a product or service are required to obtain a sales tax permit from the Oklahoma Tax Commission (OTC)--which gives owners permission to legally collect sales tax. Most Oklahoma licenses and permits can be found here. Plus, the OK Corp Commission also has a detailed list of licenses and license fees. According to their website, the OK Corp Comm is a “regulatory agency for the State of Oklahoma with emphasis on the Fuel, Oil and Gas, Public Utilities, and Transportation Industries.” Find out the LLC in Oklahoma requirements 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.
Familiarize Yourself with the State’s Taxes and Licenses
Income from pass-through entities, such as an Oklahoma Limited Liability Company and Oklahoma 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 Oklahoma requires all LLC owners to file a report that updates all the information that the Oklahoma Secretary of State has on file. This is usually called an Annual Report, but in OK, it is called an Annual Certificate. Each Annual Certificate is submitted every year and is due by the anniversary of the registration date, along with a filing fee of $25.
OK LLC filing is available via printed form sent by mail or online. You can find the form or the link to where you can submit online here. Filing an Annual Certificate is necessary for maintaining an active status after starting an LLC in Oklahoma. Not filing the report or paying the fee will result in being presented an Oklahoma LLC dissolution form, after which the state will dissolve your business.
Annual Certificates can be rather complex–requiring the deciphering of gross receipts, dividends, interest, losses, and all Oklahoma 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.
File an Annual Report
Like most states, the State of Oklahoma requires all LLC owners to file a report that updates all the information that the Oklahoma Secretary of State has on file. This is usually called an Annual Report, but in OK, it is called an Annual Certificate.
Raise Funds for Your LLC
You can’t start a business with zero capital. There are legal fees, the Oklahoma LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general Oklahoma 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
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.
Raise Funds for Your LLC
You can’t start a business with zero capital. There are legal fees, the Oklahoma LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general Oklahoma 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 formationIf 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
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 Oklahoma 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 apply for an LLC in Oklahoma 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 Oklahoma has a business with the same name. In that case, think of something more original.
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 Oklahoma 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 Oklahoma 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 Oklahoma with peace of mind, knowing that you are protected by an LLC in case anything unforeseeable affects your new business venture.
Begin Operating Your Business
Once you complete your Oklahoma 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 Oklahoma LLC fees.
Ohio - LLC
Learn the Benefits of an LLC
There are many benefits to setting up your business as an LLC. LLCs not only have more tax options, but they also offer decreased liability, reduced record keeping, and sharing of profits. They are simpler to set up and maintain, with much simpler rules and regulations. There is decidedly less registration paperwork and lower-costing startup expenses.
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.
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 NowBesides 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 OH LLC with multiple members is that the members decide how to report profits and losses for tax purposes and have several options as to how they prefer to be taxed.
For federal tax purposes, if you’re the sole member of an LLC, your business is treated as a disregarded entity. This means that although you and your business are separate entities, the SMLLC’s income and expenses are reported on the owner’s personal tax return rather than an SMLLC tax return, and the IRS ignores the SMLLC’s status as a business entity. However, for purposes of employment tax and certain excise taxes, an SMLLC is still considered a separate entity. The way a sole proprietorship is taxed is the IRS’ default option for an SMLLC.
In contrast, a corporation only has two choices: S corporation or C corporation.. A business operated as a sole proprietorship or a partnership also doesn’t have an option as to how it will be taxed.
The best part of getting an LLC in Ohio 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 Ohio 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.
Learn the Benefits of an LLC
For most folks looking to start a business in Ohio, 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
The next step needed before you apply for an LLC in Ohio 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.
- 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.
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.
Assign Member Roles
The next step needed before you apply for an LLC in Ohio 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 Statutory Agent
Next, figure out who the Statutory Agent for the LLC should be. The State of Ohio 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 Statutory Agent will also act as the contact point between your LLC and the Secretary of State’s office. Once you assign someone as your Statutory Agent, they can receive official correspondence and documents on behalf of your business.
A Statutory Agent can be either an individual who is a resident of Ohio 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.
- Possess a physical street address located in Ohio (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. An alternative you can look into is hiring an Ohio Statutory Agent Service. We also offer a Statutory Agent Service for a small charge that you can include as an add-on to your shopping cart.
Decide on a Registered Agent
Next, figure out who the Statutory Agent for the LLC should be. The State of Ohio 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 Ohio, you will also need to register your business by submitting your Articles of Organization to the Ohio Secretary of State. This form includes information such as the LLC's name and address, the statutory 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. 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 Ohio 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 Ohio.
Submit Your Articles of Organization
While forming an LLC in Ohio, you will also need to register your business by submitting your Articles of Organization to the Ohio Secretary of State.
Obtain an Employer
Identification Number
Next, your LLC will need to file with the IRS for an Employee Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. (Note: you do not need an SSN to apply for an EIN, so international applicants are welcome.) Corporations, partnerships, and LLCs require an EIN, while sole proprietors do not. Instead, sole proprietors can use their Social Security Number, but that is not recommended as that exposes you to potential identity theft/fraud. In any case, it is a good idea to obtain one in case the company grows or for banking purposes.
Fortunately, you do not have to waste time dealing with the IRS on your own. Going through the IRS directly to get your EIN can be complicated, confusing, and frustrating. GovDocFiling alleviates the angst and aggravation of filing government documents, including applying for an EIN, or Tax ID number. Plus, GovDocFiling has one low price for same-day processing and delivery of your EIN (other Tax ID filing services charge more than $300 for same-day service!). Easily apply for your EIN/Tax ID online here. In addition, if you have any questions about obtaining an EIN, we offer 24/7 email and phone support to help you through the process. Emails are answered quickly at info@govdocfiling.com.
Once you designate how you prefer to be taxed, that decision must remain in effect for five years before being changed without approval from the IRS.
Obtain an Employer Identification Number
Next, your LLC will need to file with the IRS for an Employee Identification Number (EIN). This is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer.
Fill Out an Operating
Agreement
Once you’ve decided on member roles within your LLC, it is time to create a business contract that holds members to their assigned responsibilities. An LLC Operating Agreement in Ohio is a legal document that determines the financial and working relationships among business owners, members, and managers. Member duties would be explained and “what if” scenarios would be covered (such as what happens if a member leaves the LLC). If you do not have an Operating Agreement set up for your business, when something unforeseeable happens, it will be up to the state to decide how to proceed justly, and this may not be what you want.
While it is not a legal requirement to have an Operating Agreement for an Ohio LLC, it is still extremely important to have one in order to protect your business. You can have a lawyer look over your Ohio State 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.
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 Ohio 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 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.
The Ohio state tax rates vary between 1.98% and 5%. All Ohio LLC business owners will need to pay self-employment tax on all earnings that are withdrawn from the Ohio business. The current self-employment tax rate is 15.3%, but this can be prone to change. The Internal Revenue Service allows LLCs to be treated as an S Corporation for tax purposes which can help reduce the amount of self-employment tax.
Additionally, some OH LLCs pay Ohio sales tax on products, employers owe payroll tax on employees wages, and employees pay federal, state and payroll tax on their earnings. For more details on Ohio state taxes, visit the Ohio Department of Taxation.
Like most other states, Ohio taxes corporation income, which will apply to you if your LLC is classified as a corporation. In this case, Ohio would treat the LLC the same way as a corporation when it comes to taxes. If your Ohio LLC files taxes as a corporation, the company itself must file a separate tax return.
There may be extra fees for certain insurances, permits, and licenses. For example, depending on the state’s laws and the type of business you own, you may need to pay unemployment tax and offer worker’s compensation insurance. Info on on worker’s comp can be found on the Ohio Bureau of Workers' Compensation website. Find out the specific 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.
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 owners, who are required to report this information on their personal tax returns.
Keep Track of Your Business Financials
While most states require an Annual Report, an Ohio LLC doesn’t have 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 Ohio 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 all taken care of 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.
Keep Track of Your Business Financials
While most states require an Annual Report, an Ohio LLC doesn’t have 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 Ohio LLC fees.
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
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.
Raise Funds for Your LLC
You can’t start a business with zero capital. There are legal fees, document filing fees, taxes, employees to pay if you are not an SMLLC, as well as the costs of operating a business.
Create a Business Website
Creating a website for your business is not a requirement but it is recommended to any business owner operating in the modern world. An online presence is important to have and maintain in order to ensure that your customers trust your company and know they will receive good customer service. Having a website gives your business legitimacy; your customers will visit your website and see that you are a real company with an actual website where they can read about the company’s origin and products/services and access contact information. Being able to read up on a company on their website leads to trust between a consumer and an organization. Also, dependable customer service is often offered through a website. By offering an email address, a contact form, and/or live chat with a representative on your website, you are making it easy for a customer to get connected with someone knowledgeable about the product/service. That allows a customer to know that there is a real person who cares about their satisfaction within the company that they are doing business with.
Start LLC formationIf 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
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 for OH LLC names:
- 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 Ohio, 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 Ohio Name Database.
- Make sure it is available as a web domain. This way, you can find out if another company outside of Ohio has a business with the same name. In that case, think of something more original.
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 are finished becoming an LLC in Ohio, 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 State of Ohio LLC with peace of mind, knowing that you are protected by an LLC in case anything unforeseeable affects your new business venture.
Begin Operating Your Business
Once you are finished becoming an LLC in Ohio, 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.
North Dakota - LLC
Learn the Benefits of an LLC
There are many benefits to setting up an LLC in North Dakota. 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 North Dakota LLC cost is not as high as it is for a North Dakota corp or North Dakota S-corp.
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 ND 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.
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 NowBesides 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 North Dakota 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 North Dakota.
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 North Dakota, 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 North Dakota 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 North Dakota LLC does not permit this (unless you file as an S corp in North Dakota). 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 North Dakota.
Learn the Benefits of an LLC
For most folks looking to start a business in North Dakota, 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.
- 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.
If you know your North Dakota 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.
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 North Dakota 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 North Dakota 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 North Dakota 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.
- Possess a physical street address located in North Dakota (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 North Dakota 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.
Decide on a Registered Agent
Next, figure out who the Registered Agent for the LLC should be. The State of North Dakota 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 North Dakota, you will need to register your North Dakota Limited Liability Company by submitting a form called the Articles of Organization. The Articles of Organization are filed with the North Dakota Secretary of State. The form includes information such as the LLC's name and address, the Registered Agent’s information, whether the LLC is run by managers or members, etc. If you also have an Operating Agreement written out, you would include a copy of it with the Articles of Organization. Submitting your Articles of Organization form in North Dakota is a requirement.
When filing your North Dakota LLC application, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of North Dakota LLC forms, and long wait times whether in person or by mail--especially if you happen to register an LLC in ND 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 North Dakota LLC Articles of Organization form is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of North Dakota.
Submit Your Articles of Organization
As you get ready to apply for an LLC in North Dakota, you will need to register your North Dakota Limited Liability Company by submitting a form called the Articles of Organization.
Obtain an Employer
Identification Number
One of the North Dakota 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 North Dakota 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.
Obtain an Employer Identification Number
One of the North Dakota 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 North Dakota 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 one of the North Dakota LLC requirements to have an Operating Agreement, it is still extremely important to have one in order to protect your business.
You can have a lawyer look over your North Dakota LLC Operating Agreement form prior to submitting it. Get the legal advice you need to protect you and familiarize yourself with North Dakota LLC law with our partner Rocket Lawyer.Your company is responsible for maintaining copies of the Operating Agreement.
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 North Dakota 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 North Dakota Limited Liability Companies and North Dakota S corps “pass through” the business to the owners, who are required to report this information on their personal tax returns. Each individual LLC member will then have to pay taxes on his or her share of the LLC’s income. North Dakota has one of the lowest state income taxes in the country--rates range from 1.1% to 2.9%. The LLC itself does not pay federal income taxes, but some states do charge the LLC other various taxes. For example, employers owe payroll tax on employees wages. Additionally, North Dakota has a sales and use tax rate of 5%, but this can change depending on local municipalities. The total tax rate can get as high as 8.5%. The North Dakota Office of State Tax Commissioner has additional tax information.
Like most other states, North Dakota taxes corporation income, which will apply to you if your LLC is classified as a C corporation. In this case, North Dakota would treat the LLC as a corporation when it comes to taxes. Therefore, if your State of North Dakota LLC files taxes as a North Dakota corp, the company itself must file a separate tax return. Good news for prospective business owners in North Dakota: the state’s corporate tax rates are among the lowest in the country. North Dakota taxes corporation income at a series of marginal rates ranging from 1.4% to 4.31%, depending on income.
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. Licenses issued by the Attorney General and Secretary of State can be found on the Department of Labor and Regulation (DLR) website. Find out which additional requirements there may be 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.
Familiarize Yourself with the State’s Taxes and Licenses
Income from pass-through entities such as North Dakota Limited Liability Companies and North Dakota S corps “pass through” the business to the owners, who are required to report this information on their personal tax returns.
File an Annual Report
Like most states, the State of North Dakota requires all LLC owners to file a yearly report that updates all the information that the North Dakota Secretary of State has on file. This is called the Annual Report, and it is due annually by November 15, along with a fee of $50 payable to the North Dakota Secretary of State. Online filing of the Annual Report is available on the North Dakota Secretary of State website. Filing an Annual Report is necessary for maintaining an active status after starting an LLC in ND. Not filing the report or paying the fee will result in being presented a North Dakota 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 North Dakota 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.
File an Annual Report
Like most states, the State of North Dakota requires all LLC owners to file a yearly report that updates all the information that the North Dakota 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 North Dakota LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC in North Dakota 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
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.
Raise Funds for Your LLC
You can’t start a business with zero capital. There are legal fees, the North Dakota LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC in North Dakota 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 formationIf 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
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 North Dakota 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 North Dakota 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 North Dakota Business Name Availability page.
- Make sure it is available as a web domain. This way, you can find out if another company outside of North Dakota has a business with the same name. In that case, think of something more original.
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 North Dakota 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 North Dakota 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 North Dakota with peace of mind, knowing that you are protected by an LLC in case anything unforeseeable affects your new business venture.
Begin Operating Your Business
Once you complete your North Dakota 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 North Dakota LLC fees.
North Carolina - LLC
Learn the Benefits of an LLC
There are many benefits to setting up an LLC in North Carolina. 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 North Carolina LLC cost is not as high as it is for a North Carolina corp or North Carolina S-corp.
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 S 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.
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 NowBesides 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 NC State 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 North Carolina.
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 North Carolina, 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 a NC LLC comes with 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 North Carolina LLC does not permit this (unless you file as an S corp in North Carolina). 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 necessary to form an LLC in NC online.
Learn the Benefits of an LLC
For most folks looking to start a business in North Carolina, 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.
- 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.
If you know your North Carolina 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.
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 North Carolina 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 North Carolina 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 North Carolina 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.
- Possess a physical street address located in North Carolina (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 NC LLC 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.
Decide on a Registered Agent
Next, figure out who the Registered Agent for the LLC should be. The State of North Carolina 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 North Carolina, you will need to register your North Carolina Limited Liability Company by submitting a form called the Articles of Organization. It is one of the NC Secretary of State filing requirements. The form includes information such as the LLC's name and address, the Registered Agent’s information, whether the LLC is run by managers or members, etc. If you also have an Operating Agreement written out, you would include a copy of it with the Articles of Organization. Submitting your Articles of Organization in North Carolina is a requirement.
When filing your North Carolina LLC application, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of North Carolina LLC forms, and long wait times whether in person or by mail--especially if you happen to register an LLC in NC 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 North Carolina LLC Articles of Organization form is accepted, congratulations! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of North Carolina.
Submit Your Articles of Organization
As you get ready to apply for an LLC in North Carolina, you will need to register your North Carolina Limited Liability Company by submitting a form called the Articles of Organization.
Obtain an Employer
Identification Number
One of the NC 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 North Carolina 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.
Obtain an Employer Identification Number
One of the North Carolina 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 North Carolina 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 one of the North Carolina LLC requirements to have an Operating Agreement, it is still extremely important to have one in order to protect your business.
You can have a lawyer look over your North Carolina LLC Operating Agreement form prior to submitting it. Get the legal advice you need to protect you and familiarize yourself with North Carolina LLC law with our partner Rocket Lawyer.Your company is responsible for maintaining copies of the Operating Agreement LLC NC form.
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 North Carolina 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 North Carolina Limited Liability Company and North Carolina S corporation, “pass through” the business to the owners, who are required to report this information on their personal tax returns. Each individual LLC member will then have to pay taxes on his or her share of the LLC’s income. The LLC itself does not pay federal income taxes, but some states do charge the LLC other various taxes. For example, employers owe payroll tax on their employees’ wages. Additionally, North Carolina has a sales and use tax of 4.75%, as well as other taxes. More information on other types of taxes can be found on the North Carolina Department of Revenue website.
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. It is possible to choose to have your LLC classified as a North Carolina corporation, but the company itself must file a separate tax return and pay additional taxes. North Carolina has a Corporate Income and Franchise Tax. More information on those taxes can be found here. Additionally, you can choose to have your LLC taxed as an S corporation. In that case, on top of North Carolina’s LLC taxes, you’ll have to pay North Carolina’s franchise tax on net worth--which is a minimum of $200 a year.
There may be extra fees for certain insurances, permits, and licenses, depending on the State of North Carolina’s laws and the type of business you own. For example, you may need worker’s compensation, unemployment insurance, building permits, etc. You can find out information about North Carolina licenses and permits on the NC Secretary of State website. Find out which additional requirements there may be 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.
Familiarize Yourself with the State’s Taxes and Licenses
Income from pass-through entities such as North Carolina Limited Liability Companies and North Carolina S corps “pass through” the business to the owners, who are required to report this information on their personal tax returns.
File an Annual Report
Like most states, the State of North Carolina requires all LLC owners to file a yearly report that updates all the information that the North Carolina Secretary of State (SOS) has on file. This is called the Annual Report, and it is due annually by April 15, along with a processing fee payable to the NC SOS, LLC submissions costing $200 for mailed forms and $202 for online submissions. For either online or mailed submissions, visit the North Carolina Secretary of State website for instructions. Filing an Annual Report is necessary for maintaining an active status after starting an LLC in NC. Not filing the report or paying the fee will result in being presented a North Carolina 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 North Carolina 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.
File an Annual Report
Like most states, the State of North Carolina requires all LLC owners to file a yearly report that updates all the information that the North Carolina Secretary of State (SOS) has on file.
Raise Funds for Your LLC
You can’t start a business with zero capital. There are legal fees, the North Carolina LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC in North Carolina 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
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.
Raise Funds for Your LLC
You can’t start a business with zero capital. There are legal fees, the North Carolina LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC in North Carolina 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 formationIf 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
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 North Carolina 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 NC 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 North Carolina Secretary of State Business Name Database.
- Make sure it is available as a web domain. This way, you can find out if another company outside of North Carolina has a business with the same name. In that case, think of something more original.
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 NC LLC formation, make sure to keep your LLC compliant. To do so, keep track of all important dates, such as those for NC LLC filing requirements and license/permit renewals, and pay all necessary North Carolina 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 NC businesses, and making payments.
You can begin operating your business in North Carolina with peace of mind, knowing that you are protected by an LLC in case anything unforeseeable affects your new business venture.
Begin Operating Your Business
Once you complete your NC LLC formation, make sure to keep your LLC compliant. To do so, keep track of all important dates, such as those for NC LLC filing requirements and license/permit renewals, and pay all necessary North Carolina LLC fees.
New York - LLC
Learn the Benefits of an LLC
There are many benefits to setting up an LLC in NY. 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 LLC NY cost is not as high as it is for a New York C corp or New York S corp.
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 NY 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.
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 NowBesides 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 NY LLC with multiple members is that the members decide how to report profits and losses for tax purposes and have several options as to how they prefer to be taxed.
For federal tax purposes, if you’re the sole member of an LLC, your business is treated as a disregarded entity. This means that although you and your business are separate entities, the SMLLC’s income and expenses are reported on the owner’s personal tax return rather than an SMLLC tax return, and the IRS ignores the SMLLC’s status as a business entity. However, for purposes of employment tax and certain excise taxes, an SMLLC is still considered a separate entity. The way a sole proprietorship is taxed is the IRS’ default option for a single member LLC in New York.
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 New York, 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 New York corporations.
But New York LLCs have a few disadvantages. If LLC owners do not choose to file for a tax status as a corporation, individual members pay high self-employment taxes. Also, if business owners decide they may want to take the company public and sell stock, a New York LLC does not permit this (unless you file as a New York S corporation). Despite these disadvantages, creating an LLC for your startup business is usually recommended. It is well worth it to protect your personal assets and simplify the process of forming an LLC in NY.
Learn the Benefits of an LLC
For most folks looking to start a business in New York, 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.
- 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.
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.
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 New York Registered Agent for the LLC should be. The State of New York requires every LLC in the state to have one. This enables the state to ensure the delivery of legal mail and that court documents can be tracked appropriately. The Registered Agent will also act as the contact point between the New York Department of State and the LLC. Once you assign someone as your Registered Agent, they can receive official correspondence and documents on behalf of your business.
A Registered Agent can be either an individual who is a resident of New York 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.
- Possess a physical street address located in New York (no P.O. Box address).
- Be available during regular business hours, typically Monday through Friday, 9 am to 5 pm.
Although the most comfortable option for a Registered Agent would be to name yourself, a friend, or a family member, know that this information will be public record. Not only will the information be searchable on the state’s LLC website, it can also be republished on other sites as well. If you work from home and would much rather keep your home address private, this might not be the best choice. An alternative you can look into is hiring a New York 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.
Decide on a Registered Agent
Next, figure out who the New York Registered Agent for the LLC should be. The State of New York requires every LLC in the state to have one.
Submit Your Articles
of Organization
As you get ready to apply for an LLC in NY, you will need to register an LLC in NY by submitting a form called the Articles of Organization. The Articles of Organization are filed with the New York 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 an Operating Agreement written out, you would include a copy of it with the Articles of Organization in your records. Submitting your Articles of Organization is necessary to form an LLC in New York State.
When establishing an LLC in NY, as part of the cost to form an LLC in NY, there are usually non-refundable fees that you have to pay with check or money order, additional fees for hand-delivery of New York LLC forms, and long wait times whether in person or by mail--especially if you form an NY 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 New York LLC Articles of Organization form is accepted, congratulations on becoming an LLC in NY! Your company now exists as a recognized legal entity that is authorized to conduct business within the State of New York.
Afterwards, all newly formed LLCs to publish an announcement of their formation in two newspapers that are chosen by the County Clerk. The newspapers need to be near your LLC’s location and the ad must run once a week for six weeks in a row. After the advertisement has finished its 6-week run, make sure that the publisher of each newspaper mails you an Affidavit of Publication. Mail a copy of the Affidavit, along with a filing fee of $50, to the New York Department of State. Keep the original with your business records at all times. If you do not comply with the New York LLC publishing requirements, according to the New York Limited Liability Company Law, your authority to conduct any business will be suspended.
Submit Your Articles of Organization
As you get ready to apply for an LLC in NY, you will need to register an LLC in NY by submitting a form called the Articles of Organization. The Articles of Organization are filed with the New York Department of State.
Obtain an Employer
Identification Number
As part of your LLC application in NY, one of the New York LLC tax filing requirements is getting an EIN. Your LLC will need to file with the IRS for an Employer Identification Number (EIN), which is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer. (Note: you do not need an SSN to apply for an EIN, so international applicants are welcome.) Corporations, partnerships, and LLCs require an EIN, while sole proprietors do not. Instead, sole proprietors can use their Social Security Number, but that is not recommended as that exposes you to potential identity theft/fraud. In any case, it is a good idea to obtain one in case the company grows or for banking purposes.
Fortunately, you do not have to waste time dealing with the IRS on your own. Going through the IRS directly to get your EIN can be complicated, confusing, and frustrating. GovDocFiling alleviates the angst and aggravation of New York 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.
Obtain an Employer Identification Number
As part of your LLC application in NY, one of the New York LLC tax filing requirements is getting an EIN. Your LLC will need to file with the IRS for an Employer Identification Number (EIN), which is a nine-digit number assigned to businesses for tax filing and reporting purposes that allows the IRS to identify the taxpayer.
Fill Out an Operating
Agreement
Once you’ve decided on member roles within your LLC, it is time to create a business contract that holds members to their assigned responsibilities. An LLC Operating Agreement in New York 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.
New York is one of the few states where a necessary step in your New York LLC registration is to have an Operating Agreement for your business. The state recognizes that it is extremely important to have one in order to protect your business and legally requires that you have an Operating Agreement in place. The rules are not as lax as those in other states that require an Operating Agreement: the Agreement cannot be oral or implied--only written. Also, it should specifically cover the conduct of the LLC’s affairs as well as the rights, limitations, preferences, and responsibilities for the members within in. It is not filed with the New York Department of State. Once it is agreed upon, it should be kept with the company’s records, along with any future amendments. You can have a lawyer look over your New York LLC Operating Agreement form prior to submitting it. Get the legal advice you need to protect you and familiarize yourself with New York LLC law with our partner, Rocket Lawyer.
Fill Out an Operating Agreement
Once you’ve decided on member roles within your LLC, it is time to create a business contract that holds members to their assigned responsibilities. An LLC Operating Agreement in New York is a legal document that determines the financial and working relationships among business owners, members, and managers.
Familiarize Yourself with the
State’s Taxes and Licenses
Income from pass-through entities, such as a New York Limited Liability Company and New York State 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. A New York LLC does not pay federal or state income taxes. Instead, the business would need to pay NY LLC filing fees that vary depending on their gross income. The minimum fee is $25. Additionally, some states charge the LLC other various taxes, such as sales tax. Be sure to look into all of the specifics. More information can be found in the New York Department of Taxation and Finance publication.
For example, employers owe payroll tax on employees wages. Additionally, New York has a state sales and use tax rate. The sales tax rate is 4%, but this varies per city. For example, if you add the average county and city sales tax rates to the state rate, the combined rate for New York City, NY is 8%. Most additional tax-related information can be found on the Official New York Government Website.
Like most other states, New York taxes corporation income, which will apply to you if your LLC is classified as a C corporation. In this case, New York would treat the LLC as a corporation when it comes to taxes. Therefore, if your New York 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. New York has a long list of licenses and regulations that depend on the type of business you have as well as where in New York it is located. For example, if you plan to have an NYC LLC, this is the list of licenses just for New York City. 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.
Familiarize Yourself with the State’s Taxes and Licenses
Income from pass-through entities, such as a New York Limited Liability Company and New York State S corp, “passes through” the business to the owners, who are required to report this information on their personal tax returns.
File an Biennial Report
Like most states, the State of New York requires all LLC owners to file a report that updates all the information that the New York Department of State has on file. While most states require this report to be submitted annually for LLCs, New York requires a submission biennially--by the end of the registration anniversary month.
Good news for prospective LLC owners in New York: while some states charge over $500 every single year as a required fee that all LLC owners must pay when submitting their Reports, New York requires a fee of only $9 that owners need to pay once every two years when submitting their Biennial Reports.
Online filing is available on the Department of State, Division of Corporations, State Records, and UCC website. Filing a Biennial Report is necessary for maintaining an active status after starting an LLC in NY. Not filing the report or paying the fee will result in being presented a New York LLC dissolution form, after which the state will dissolve your business.
Biennial Reports can be rather complex–requiring the deciphering of gross receipts, dividends, interest, losses, and all New York 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.
File an Biennial Report
Like most states, the State of New York requires all LLC owners to file a report that updates all the information that the New York Department of State has on file.
Raise Funds for Your LLC
You can’t start a business with zero capital. There are legal fees, the New York LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC cost in NY 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
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.
The cost to set up an LLC in New York is higher than some other states, so make sure you raise funds for your LLC in the way that works best for you and your new business.
Raise Funds for Your LLC
You can’t start a business with zero capital. There are legal fees, the New York LLC filing fee, taxes, employees to pay if you are not an SMLLC, as well as the general LLC cost in NY 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 formationIf 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
If you’ve decided that you want to have a website for your business, keep a few things in mind. When coming up with a website name, make sure that the domain contains your business name and is easy to type and remember for future visits. If you come up with a great web domain that you’d like to use for your business but you don’t plan to create a business website today, you may want to buy the URL to prevent others from acquiring it.
While brainstorming website URLs for your website, you’re going to either realize that you already know what your business is going to be named or that you have no idea what or how to name your business. Here are a few quick New York 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 NY you will need an original name that is not in use by another LLC. To check if the New York LLC name has already been taken, you can search the Department of State Division of Corporation, State Records and UCC website. They have a Corporation and Business Entity Database that has all New York corporation and LLC names listed. If you are not ready to file your New York LLC today but want to reserve a name to ensure that it is not taken, you can file an Application for Reservation of Name, which will reserve the business name for you for 60 days.
- Make sure it is available as a web domain. This way, you can find out if another company outside of New York has a business with the same name. In that case, think of something more original.
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 New York State 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 New York 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 making payments, keeping records, and filling out LLC paperwork for your NY business.
You can begin operating your business in New York with peace of mind, knowing that you are protected by an LLC in case anything unforeseeable affects your new business venture.
Begin Operating Your Business
Once you complete your New York State 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 New York LLC fees.