Thursday, July 1, 2021

Do You Need To Create an LLC For Your Startup? - Helpful Hints

 Do You Need To Create an LLC For Your Startup? 

The short answer is, “No,” you really don’t need to. You can run a business set up in several ways from a sole proprietorship to formal incorporation. For many businesses, a limited liability company, or LLC, may be the right choice. LLCs are actually rather easy to set up and offer some advantages to business owners in areas such as taxes and personal asset protection. 

Before you decide, it’s a great idea to research the different organization options available and choose the right one for you. Some businesses may decide to start out as a sole proprietorship and change to an LLC or corporation when the business has grown a bit. It might also be helpful to consult an attorney and an accountant to help you understand the implications of each type of organization so you can choose which is appropriate. 

If you choose to start an LLC, it’s not a very complex process. Requirements and laws vary from state to state, so it’s important to know the process where you are going to operate. 

According to the website “How To Start an LLC” there are 

6 basic steps to setting up an LLC

1. Choose the state in which the LLC will be registered 

2. Name the LLC 

3. Chose a registered agent 

4. File the LLC with the state 

5. Create an LLC operating agreement 

6. Get an Employer Identification Number (EIN) from the IRS also has some excellent information on how to set up an LLC in each state as well as helpful videos to help you navigate through the process.