Take Your Business to the Next Level
If you want to grow your business, protect your assets, and boost your credibility, look no further. Incorporating your business as a Limited Liability Company (LLC) is a straight shot to these benefits and more. This hybrid business structure provides personal liability protection, tax advantages, and a flexible, straightforward business structure to help skyrocket your business to success.
Why Business Owners Choose LLCs
It’s no surprise that an LLC is one of the most popular business structures for smaller organizations. From a flexible tax status to layers of security, an LLC offers several advantages compared to other common business entities.
Extra Security
You’re not personally liable for any business debts thanks to personal asset protection.
Pass-through Taxation
LLCs are not taxed at the corporate level. All profit and losses are reported with each member’s personal income taxes.
More Credibility
A formal business name will increase recognition among customers, partners, suppliers, and lenders.
Flexible Management
Owners can choose to manage the company or select one or more managers based on the operating agreement.
Minimal Formalities
LLCs have very few regulations, such as filing an annual report and paying any applicable state-level taxes.
Flexible Tax Status
You can decide how your LLC is viewed as a taxable entity — partnership, sole proprietorship, or corporation.
The Ins and Outs of Forming an LLC
Are you ready to start your LLC? Here are the steps you need to know to get your new business structure up and running.
Reserve Your Name
Your name should be unique, easy to remember, and compliant with your state’s unique laws. If you have a name in mind that represents your product or service, double-check that it’s available on your Secretary of State’s website. You can then choose to trademark your name with the United States Patent and Trademark Office (USPTO) and add an additional layer of protection to your business.
Choose Your Location
It’s no secret that location can make or break a business, even down to the state you choose to incorporate in. The vital thing to note is that you’re not limited to the state that you live in. In fact, many states offer distinct benefits! Delaware has no corporate income taxes, Wyoming provides low filing costs and annual fees, and Texas offers low taxes and cost of living.
Find a Registered Agent
A registered agent serves as the contact between government agencies and a business for all legal correspondence. LLCs must have a registered agent for each state that they’re registered in.
You can choose to be your own registered agent or hire a reliable third party and keep your contact information private. We partner with LegalCorp Solutions, a registered agent service provider available in all 50 states, to provide an affordable and professional option to fulfill this requirement. Contact us today for more information.
File Your Articles of Organization
No matter which state you choose to incorporate in, you’ll need to file your Articles of Organization with the Secretary of State and pay a filing fee. This document outlines basic information about your business. You’ll receive a formal certificate from that state that proves your business is officially registered if approved.
Create Your Operating Agreement
An operating agreement is not always required, but it adds additional benefits to your LLC. This document can help protect your status as an LLC, boost your credibility, and prove that your LLC is a separate entity. You can create an operating agreement in minutes with our partner, Swyft Filings.
Register for an EIN
Are you hiring employees, opening a bank account, or paying independent contractors? If so, you’ll need to acquire an Employer Identification Number (EIN). This nine-digit code is assigned by the IRS to a company for tax purposes. It’s essentially the social security number for your business as it allows the government to identify your company easily.
Our partner, Swyft Filings, offers EIN services for businesses like yours. Find more information here.
Set Up Your Virtual Mailbox
Once you’ve formed your LLC, take the final step and set up your virtual mailbox. SnapMailbox offers 24/7 mail access, over 30 professional mailing addresses, and flexible mailing options to get your new business on the fast track to success. Read more about what SnapMailbox can do for your business on our SnapMailbox for Business page.
FAQs
How long does it take to form an LLC?
It typically takes about 7-10 days to form an LLC. However, please note that the actual length varies depending on your state's unique process times. Swyft Filings offers expedited processing to help get your application reviewed quickly.
How many members or owners do I need to form an LLC?
There is no requirement for the number of members or owners. Single-member LLCs can qualify for pass-through taxation at the federal level; however, this is not always the case at the state level.
What do I need to include in my operating agreement?
Your operating agreement should detail the structure of your organization, including management and voting processes, profit and loss distribution, membership changes, and capital contributions. The document should also provide information on when and how the company should dissolve.
What do I need to do to get my EIN?
You’ll need to prepare a Form SS-4 with the IRS and submit it to the appropriate agencies. You’ll also need to provide a social security number during the application process. If you don’t have one, you’ll need to file Form W-7 with the IRS to obtain an Individual Tax Identification Number (ITIN).
It’s Never Been Easier to Manage Your Business
Give your new LLC a competitive edge with SnapMailbox.