Forming Your Business LLC

Have you been thinking about forming your business as an LLC – Limited Liability Company?

Let me guess, you’ve been providing services for a while filing as a sole proprietor but as your business continues to grow, you’re now thinking, “Perhaps, it might be best to begin forming my business LLC?” Or maybe, you are just getting started in business but would like to create your business from an abundance mindset from the start.

If so, you are right in the right spot to:

Know if you are ready for an LLC

Learn the perks of having an LLC

Learn the 6 steps you have to take to fully complete your formation & filing.

WHAT IS A BUSINESS LLC?

Not sure what the difference is between being a sole proprietor vs having a business entity of LLC?

A sole proprietorship is considered an informal business entity because you are using your personal name to conduct business unless you acquire a DBA – “Doing Business As” name.

This option is best if you have a low-risk endeavor & just want to test it out by dipping your toes in the water to see how it feels. (Less than a $ 6-figure annual income- Hobby Business per se.)

The LLC, however, is a legal business entity (even if you use your name in it) because you have a legit registered business with personal liability protection.

With a business LLC, you have more perks when it comes to protecting yourself, growth capabilities, + attaining tax benefits.

Let’s explore these below in this week’s training.

THIS WEEKS TRAINING

In this week’s training, discover the perks & steps to forming your business LLC.

HOW TO KNOW IF YOU ARE READY FOR AN LLC

The right answer is when you feel the intuition inside to form your LLC.

Below, you will find several scenarios to know if you are ready now.

You can start your business with an LLC from the get-go if you have an abundance mindset & know you will be growing a big business (think hiring team members or making well over $6 figures) & just want to omit the step of doing it when business gets full of clientele.

Additionally, you can start your business LLC right from the start, if you just want to overcome fears of having potential risks down the road so you have more security & business perks in your future.

The next reason to form an LLC is if you have lots of risk in your business. The more money you make & oftentimes the type of services you offer, the higher the risk involved. If you have a high-risk business of needing legal support in the future the best thing you can do is start an LLC to protect yourself & your company.

PERKS OF AN LLC

There are 2 main perks to having a Limited Liability Company.

• Personal Asset Protection
• Tax Benefits

Personal Asset Protection

Personal asset protection allows your personal assets to be separate from your business assets.

This is identified as limited liability protection.

An example of how this works is in the event your business gets sued or suffers an extreme loss, your personal assets are spared and you would be able to keep your home, vehicles, and any personal banking accounts, etc instead of them being taken as collateral of the losses.

Tax Benefits

As a single-member (disregarded entity) or multi-member (partnership) limited liability company, the parties involved get taxed as pass-through taxation.

What is pass-through taxation? It is where the profits of the business pass through the members (100% to single-member & in partnerships it’s based on the percent noted in the Operating Agreement) and are recorded & filed on each owner’s tax return & therefore are not double taxed like a corporation.

It simply means that you get taxed just as if you are a sole proprietor but you also get the benefits of having personal asset protection.

FORMING YOUR BUSINESS LLC

When filing for your LLC there are several steps you want to take & articles you want to obtain.
These include:

• State Business Entity Filing – Choosing & registering the name of your business LLC
• Selecting A Registered Agent – The person who receives all correspondence, especially in the event your company gets sued.
• Register For Your EIN- Employer Identification Number
• Filing Articles of Organization
• Creating An Operating Agreement
• Register For State Tax Filing

Depending on where your business is located within your state, you may also need to register with your city & county, as well.

Here at Passion Profit CEO, if this is your first time forming a business LLC, we highly suggest utilizing 1 of 2 options to form your business LLC.

Option 1 For Forming Your Business LLC:

The first option to form your business LLC is to hire a local business law office to do it for you.

This is the route my Husband and I chose with his business when we began.

The only cons to this option are having to physically make multiple trips to the law office & the cost.

We paid nearly $700 for the service to learn & attain everything we needed to in order to get the business LLC formed, filed, and the right documents attained.

Option 2 For Forming Your Business LLC:

The second option for forming your business LLC is the LegalZoom platform.

This platform helps with forming a business LLC in a way that makes the process hassle-free right from a computer.

It even gives you an option for a free trial to their platform so that you can download any other legal documents you may need for your business so that it is legally protected & functions properly. FYI- if you choose this you will have to cancel your membership or you will get a monthly reoccurring fee.

If you choose to form your business LLC independently the first time around, just make sure, to use the bullet list above to attain all formation & filing articles needed for your company so it is fully protected.

DANIELLE’S LLC FORMATION STORY

The LegalZoom platform is the one I used when forming the Passion Profit CEO LLC.

I already knew everything I needed but there is just something about allowing things to be easy. #AbundantMindset

Had I done it all myself, it would have taken lots more time & effort.

It made more sense to delegate it out as I already had a business I was managing & was converting from sole proprietor to LLC.

Whereas, in Phelps Services, LLC, we formed it from the beginning instead of doing business as a sole proprietor first.

So when registering Passion Profit CEO LLC I used the more time-efficient & monetarily effective way.

If the time ever skipped back, I would do it again with this method for both businesses.

I am over the moon happy with the service & whole process that I went through and many of my clients have been too.

It was easy, time effective, & totally hassle-free even though there was a small hiccup that had to be overcome.

The team contacted me & it was taken care of promptly.

I spent a total of $317 to get everything I needed & desired.

**Note: LegalZoom does have lower-cost options for those who are in a financial bind or just want to pick & choose which formation pieces they want help with.

READY FOR SUPPORT GETTING STARTED IN BUSINESS & FORMING YOUR BUSINESS LLC?

Download your copy of the Entrepreneur Startup Guide & 9 Step Checklist to have a step-by-step to getting started in business. (Mentioned in the Training)

If you are not good with tech or still just unsure needing guidance on forming your LLC, here at Passion Profit CEO, we can do a Basic Consult where we virtually walk you through the entire process of forming your business LLC through LegalZoom so you check all the bullets above & get it right.

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