What is the easiest and most affordable way to form an LLC and what should I keep in mind for what state to form it in and any templates for the articles of organization? I heard LegalZoom was great for this. Your help and suggestions are appreciated.
I established a Single member LLC in 2016. I simply called a lawyer friend in NJ and they did the whole thing for me for under $500 (perhaps I got a “friend” discount). I registered in PA where I live as this is the most obvious, but there may be tax advantages in other states based on your business (e.g. I believe Delaware may have tax advantages but it really depends on the nature of your goals/needs with the business). The lawyer can help with all the details/questions you need to consider. Hope this helps.
I don’t know how it works for all states, but New York you can do it by yourself and just pay for the application fees, very easy and not to much. if I can do it anyone can!
Looking for any information on small business owner in KY.
I used incfile and it comes with a virtual mailbox for $29 a month. It’s cheaper than Legalzoom and focuses only on making companies. I liked it more than LegalZoom, which my wife used for her company.
Hey there - I use ZenBusiness. They help represent you and streamline the process of starting an LLC quite easily.
Each state has different LLC requirements, and depending on how complex your LLC is and what specific purpose you’re using it for, you might want to consult and actual lawyer.
But if it’s just a small business to start, I’d recommend ZenBusiness and you can just update your templates / add more lingo to your contracts when needed.
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I did it myself, it was pretty easy to do. I’m from VA and I just Googled how to do it. But I did shop around and you can get it done for under $200, just do a quick Google search. Also, once you get it done, make sure you separate your business and personal expenses. Using a good bank for freelancers is perfect for this, there are so many to choose from. Having an LLC is so important:
- Fewer corporate formalities
- No ownership restrictions
- Ability to use the cash method of accounting
- Ability to place membership interests in a living trust
- Ability to deduct losses
Please keep us posted!
Research what you actually need to do to set up an LLC in your state. If you pay legalzoom or some other firm they are just going to do the same forms for you that you can do yourself. In Florida I believe the application actually cost me $175 or so paid directly to the state. There is enough good information out there that you shouldn’t need to use anyone’s services.
One suggestion. After you set up your LLC, you can apply to the IRS to treat your LLC as an S Corp for taxes. Very easy to do. That way, you can pay yourself a “reasonable wage” through payroll and the rest of your profits funnel through to your personal taxes like an S corps would. You still pay income tax of course and pay SS & medicare taxes on your payroll income, but the rest of the income you save those taxes also known as self employment taxes. Please don’t take my advice on this however, verify with a local CPA.
