Updated: October 31, 2016
Interested in how you can start and setup an LLC on-line in less than 6 minutes? This guide will show you how to start your own business online quickly, easily, and without breaking the bank!
Setting up an LLC for your business is so easy, quick, and cheap; you should not let this be a barrier to getting things started for the business you have been dreaming of starting.
Check out the YouTube video below where I guide you through the entire process of filling out the required information step-by-step to form an LLC at LegalZoom.com!
If You Missed the First Part in This Creating an LLC Series
If you are interested in finding out more of what an Limited Liability Company (LLC) is in comparison to other types of business structures or why it is a great structure if you are looking to start your own small business, check out part one of the starting your own business series here: Part 1 – How to Start an Setup an LLC.
A Couple of Points on How to Start and Setup an LLC on-line with LegalZoom.com
As you watch the video below on how to start your own business online, you will see the following choices for how to setup your LLC mentioned. For those of us that are interested in starting our own LLC and saving some money in the process, I put more specific details below on how you can start an LLC and save money. Note – LegalZoom will try to up-sell you a lot of extra stuff that you probably do not need for starting your new business:
- Would you like us to help your LLC apply for a federal tax identification number? ($79) – No, no, no!!! This takes all of 30 seconds through the IRS website, no need to spend eighty dollars on it. Here is the IRS link to get your own federal tax ID.
- Registered Agent? ($159/year) – You can be your own registered agent and have everything sent to your LLC’s main address. So, pick “I will name the registered agent”. The only real reason for this is if you are running a business out of your home and you would like to keep your address semi-private. Other examples I’ve seen used is if the Sheriff needs to serve you papers, you don’t want them coming to your business and upsetting customers. It is a waste of money for my type of business, but you can decide for yourself. If you still have a concern, another idea is to setup a UPS box and have everything sent there. Finally, if you really must have someone else act as a registered agent, you can get a service for ~$40/year. I have used Registered Agents Inc. for the past two years and can recommend them.
- State Compliance Calendar? ($69/year) – If you will elect to be taxed like a normal LLC (pass-through taxation), then this is completely unnecessary. There is not much paperwork to keep up with at all! You will only need to pay one bill a year – the LLC registration fee. Also, my experience has been that the city/count/state will notify you if they haven’t received paperwork, and if you respond in a timely fashion there is no financial penalty. If you do get the payment in late, you may be suffering a $10 or $20 penalty 🙂 So you could make a couple mistakes and still save money.
- Ownership – If you will have more than one member in your LLC, percentage based is an easier selection here. It can be important for the LLC to have at least two members if you get sued personally (not the business). If you are personally sued, lawyers can try to prove that you were operating the business as yourself vs. the company and your limited liability protection can be stripped away. This is called piercing the corporate veil. This would mean that your LLC could be treated like a personal asset. By having a second member, you can show that this would cause financial damage to the other party. This could deter a judge from liquidating the LLC to come up with money. Having more than one member has prevented this type of thing from occurring in the past! It is a little bit more work when tax time comes, but worth it in my opinion since I’m married and can identify my wife as the second member. If you are married and normally file your taxes as “Married Filing Jointly”, then naming you spouse as a 10% owner is usually a good and easy option here.
- Officers – Go ahead and set yourself up as the President & CEO. It looks great on the business cards!! Plus as a bonus you get bragging rights.
- Transfer of Ownership – This one is completely up to you. The choices go from no restrictions to heavy restrictions. I would elect for the least restrictive choice for your new business, but it depends on your other members and what your business will be doing. If you plan to start and setup an LLC with folks that you do not know very well, you may want to go a more restrictive route. If you think that you may sell your business or cash out your portion of the business down the road, then you really need to think hard on this one. I will leave this one up to you to consider as you start and setup your LLC.
- Tax Matters Member – Go ahead and identify yourself as the Tax Matters Member unless one of your other members of the LLC will be handling the taxes.
- Business Activity – Pretty straightforward, just pick the category closest to what you’ll be doing as your MAIN business activity.
- Business Advantage ($96/year) – Not sure who would buy this; please decline it. You don’t need it! A quick google search will provide you with what you will need! I have linked a couple helpful business forms for free right here:
- State Tax Form ($49) – This is a quick form you can fill out if you are going to be doing retail transactions. You can do this for free in about 5 minutes, just do a google search for your state form. No need to pay!
- Business Banking Account – I suggest you don’t bother with this here, just more spam… Head down to your local bank branch (preferably a local Credit Union) and setup a business account in person. It will take you about an hour, and it will make you feel like a real VIP once you have it setup.
- Choose Your Package ($350) – Please, please, please just pick Economy. The other packages give you a lot of extra stuff that will be of limited to no use to you!
There you go! If you followed all of my suggestions above, you will save yourself up to $802 when setting up your LLC online!!! If you are ready to get started, then start the video below and click the little LegalZoom.com icon now to create your own LLC online!
Video on How to Start and Setup an LLC On-Line in Less Than 6 Minutes
I put together this video on how to start and setup an LLC on-line in just a couple of minutes. If you have any questions on the video, starting an LLC, setting up an LLC, then please ask in the comment section below or in the video comments on YouTube. It really is pretty simple if you follow the steps I outlined above and during the video. If you follow the steps, you should be able to start your LLC for $200 – $250, it all depends on your specific state fees.
What’s Next for Starting and Setting Up your LLC?
In the third and final post of this series of how to Start and Setup an LLC on-line, I will give you a LLC Startup checklist that I developed to make sure you get all of the normal forms and such taken care of without spending hundreds with LegalZoom. So, CHECK OUT PART-3 HERE!!
Starting and running your LLC really is pretty easy. I have been running my own LLC for over three years, and let me tell you the LLC part of things is the easiest part of running a business 🙂 You will be much more focused on developing your product/service and serving customers. If you are on the fence about starting and setting up your LLC, just go for it! The difference between successful and ordinary people is that successful people are willing to take a risk and jump in even when they’re not 100% comfortable.
For more information on starting your own business, creating an LLC/inc, and running your business, check out these articles:
- Making Money – How to Start and Setup an LLC
- How to Start and Setup an LLC – Checklist
- How Much Does Starting an Online Business Cost?
- How Small Businesses Can Save Money
- Looking to Startup a Business – Try Something Different!
- Start and Setup a Corporation (INC) on-line in Less than 6 Minutes!
- Tips for Starting a Successful Small Business
- How To Restart a Failed Business
- How to Setup a Blog for Fun or Profit
- What You Need to Know Before Starting a Small Business
- What is Flex Space – and Does Your Business Need It?
- 4 Tips to Streamline your Business and Generate More Capital
- Can an Email Marketing Campaign For Your Business Save Money?
- Top 3 Reasons You Should Form an LLC For Your Business
Now It’s Time to Start Your Website
Now that you’ve created your LLC, it’s time to create your website. That’s right, every business needs its own website! Whether you started your business to blog (like me) or you are running some other type of business, you will need a website.
The good news is that it is very easy to setup and online presence with a WordPress blog from Bluehost. It is very easy to use WordPress as both a blogging tool or to help you setup a complete website for your new LLC. I have created a whole simple tutorial for you so that you can start your own blog using WordPress with Bluehost and have a website up and running in less than 20 minutes! Have I got your interest now?
For your business to be successful, customers (or readers) need to be able to find you. We both know you are busy (and maybe your startup funds are small), but for just $3.49 a month you can have a website for your business up and running. I show you how to setup a WordPress Blog using Bluehost in less than 6 minutes in this link here. That’s right – in less than 6 minutes you can have your own website! No more excuses :-)!
Make the commitment to yourself and start a WordPress Blog using Bluehost for your new business now! You will be glad you did.