If you want to create an LLC for your business, this is the article for you. As a business consultant, I've tried many different services for forming an LLC over the years, as that is one of the more common things startups want to do.
While creating an LLC can seem intimidating, companies like zenbusiness streamline the process. You can easily file for one in less than an hour, and they offer step-by-step instructions that take you through everything. So if you've wanted to do it, just get started, and you'll have it done shortly. They, of course, will try to upsell you on extra services, but for basic filings, you won't save much, if anything attempting to hunt down all the forms you need.
Keep reading to learn the steps I took to create my two most recent companies below. If you follow this, you'll have an LLC for your business, an EIN, a business checking account, and a line of credit.
DISCLAIMER: The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.
What is an LLC?
A limited liability company (LLC) is one of the most straightforward business structures in the United States, whereby the owners are not personally liable for the company's debts or liabilities(1). Protecting your personal assets from lawsuits and business failures by creating a separate entity is one foundational step every business or rental property owner should take. No one should lose their house because their business got sued.
Creating an LLC Using zenbusiness
Here are the steps to create an LLC using zenbusiness.
1. Type in Your Preferred Company Name
On the zenbusiness website, type in your desired company name and click start now to bring up the wizard to begin creating your LLC. Once you click start, answer the simple chat-like questionnaire. It'll ask if you want an LLC or corporation; I'd select LLC. Other business structures are available, but an LLC is usually your best option if you don't have several owners and don't want a board of directors. You can always elect to be taxed as an S-Corp later to save a little money if you start making more than six figures.
2. Follow the prompts to create your LLC
Follow the prompts to finish completing and filing your LLC. Congrats, you now have a Limited Liability Company!
3. Separate your business finances
Separating your business and personal finances is required to maintain the protection your LLC offers. (2) It is also much easier to know how your business is doing and deal with taxes when it's tracked separately.
You should establish a business checking and credit card account with your newly assigned EIN (like a social security number, but for your company) and run everything through those accounts. It's easy to pay yourself from your business account in case you're wondering how that works; simply transfer the money to your personal checking, which is called taking an owner's draw.
Congrats, if you've followed this guide, you've now got an LLC!!!
I hope this guide for creating an LLC has been helpful. If it has, please share so that someone else can benefit too!