When its time to get an LLC for your business and how.
If you’re an entrepreneur and have some traction with your business it might be time to form an LLC. What an LLC is a limited liability company. It’s a legal entity created by state law.
Why do you want to do this? An LLC will legitimize your business
By forming an LLC you are protecting your personal assets.
You are opening a door to other opportunities.
You can open a business checkings account.
You can get a business loan
You can sue
Tax flexibility. Dispense the profits of the business however you like.
An LLC allows you to move as a business without having to deal with the formalities that a corporation has to.
How to Purchase A LLC
Pick a Name for the LLC - it can be separate from your business
Head to your secretary of state’s website and search for the name to see if it’s taken
Fill out the Articles of the Organization
Name of LLC
The business address
Who are the members of the LLC
Pay a filing form
Get a free EIN for your business - Employer Identification Number / Federal Tax ID
Open a business bank account
Form an operating agreement. You need a contract with yourself and others on how the company is supposed to be run. What's your title. How often will you have meetings and reports? What is your salary? How will you distribute the profits? Make sure to follow the operating agreement so that you lessen your chance of being sued. If someone who sues you has proof that you and the business are one and the same you could have everything you hold dear taken. Not good. SO make sure to follow these steps to a T. Also, check to see if your state requires you to publish an annual report or just keep good records for yourself! You are running is a business and the more you treat it as such so will others!
Thanks for reading! Down below are some helpful videos that rounded out my understanding of LLCs.