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Setting up an LLC for your business is easy, quick, and cheap. For some people this process can seem daunting or intimidating but you should not let this be a barrier to getting things started for your business. In this guide I will show you step-by-step how to start your own business online easily, quickly, and without breaking the bank!
This setup will be done using LegalZoom.com and I also included a youtube video below for you to follow along to make it easy!
For this tutorial we will be creating an LLC for an e-commerce business.
Go to LegalZoom’s LLC start page. Next click “Start my LLC”.
Choose what state you want to register your LLC in. Something to think about when choosing a state for your LLC is the initial registration fee and the annual recurring fee. These fees vary from state to state and are cheaper in some states versus others. If you are not sure which state to form your LLC in you can always go with the state you are currently living in.
Choose what type of business your company will be doing. For this tutorial I will be selecting technology.
Here you will fill out the details of your business such as how many owners it will have and if it will have any employees. Once you complete these details scroll to the bottom and click “Save & Continue”.
Here you will enter in the address of your business. Once you fill this out hit “Save & Continue”.
Next you will choose a name for your business. I would recommend doing a quick google search on whatever name you come up with just to make sure there isn’t another company already using that name.
Enter in the names of the owner or owners of the company.
If there is more than 1 owner for your LLC, choose how the ownership will be divided. The easiest way is to have ownership be divided up by percentages.
In this section you will choose who will manage the business. This is also includes who is capable of signing important documents on behalf of the company. Once you choose hot “Save & Continue”.
Here you will select the registered agent for your LLC. LegalZoom charges an annual fee of $159 to be your LLC’s registered agent and receive important legal documents on your behalf in the mail. To cut cost if you are registering your company in the same state you will be living in then you can be your own registered agent and have everything sent to your LLC’s main address. You can also set up a UPS box and have everything sent there.
Enter in the address for registered agent.
LegalZoom offers to obtain your federal tax identification number for you for $49. To cut cost you can select “No” and obtain it yourself through the IRS website, it takes about 3 minutes. Here is the IRS link to get your own federal tax ID.
LegalZoom offers to complete and file annual forms for your LLC so that you dont have to. They have two packages, one that is a basic package for $280 a year and a full service package that is $320. You can save money by avoiding both packages and do a google search, for free, and file the forms on your own. The choice is yours.
Here LegalZoom will offer you business, tax and legal advice when you need it for a fee. This is not necessary so you can avoid paying for this option by selecting “No” but if you feel this is something you would like then you can select it.
For $74.99 LegalZoom can provide you with an overview of all the licenses, permits and forms your business needs. You can easily google these forms and fill them out yourself to avoid paying that fee and obtain the licenses your business needs. The forms can also be found on your local county website.
For state compliance calendar, LegalZoom will charge $69 a year to make sure you LLC is up to date every year with forms your state requires from your LLC. If you elect to be taxed like a normal LLC then there is not much paperwork needed by you every year for your LLC. You will only need to pay one bill a year and that is the LLC registration fee. You can avoid paying the annual $69 to LegalZoom and handle this yourself. Sometimes the city or state your LLC is registered in will notify you when these forms and fees are due.
Here they will offer you a business checking account for your LLC, I recommend going to your local bank or local credit union and setting one up.
Here they will offer you website consultation if you are interested in starting a website.
Here you will review the information you have entered for your LLC before complete your order.
The economy package offered by LegalZoom I think is a good package to start out with a simple LLC. It is affordable and some of the options in the Standard and Gold packages may not ever be of use to you. Based your business the decision is completely up to you which package you feel suits you business best.
Here you will find the total cost of forming your LLC. The price will vary depending on the state you register your LLC in and the options from LegalZoom you selected for your LLC.
Here is the final step where you will enter in your payment info to complete your order for your LLC. Once you have filled out the info click “Agree & Place Order”.
And there you have it! Your LLC for your business has now been created! Congratulations!