Do You Know How to Form an LLC or Incorporate a Business? Know You’re Options!

Do You Know How to Form an LLC or Incorporate a Business? Today, I am going to discuss the three most available and popular options you have to form an LLC or incorporate a business. There are pros and cons to each of the options and I will try to simplify each one so you can make an informed decision that will work well with your goals.

Here are your options:

1. Do it yourself
2. Use an attorney
3. Use an incorporation service

Let’s start with the least expensive of the three…

Form an LLC or form a corporation yourself by going straight to the Secretary of State.

The primary reason you might want to consider this option is cost. Business incorporation is just like anything else, if you do it yourself you can save money. How much you can save varies, depending on the type of filing you are doing, but you can expect to save somewhere between $100 -$150. The real downside to this option is that this is the most likely way to make an error in the filing unless you have experience with the required forms. For example, to form an LLC you will need to prepare and file Articles of Organization with the Secretary of State, a form SS-4 with the IRS to get an EIN and an Operating Agreement. If you have done this before and are familiar with the forms or know someone close to you who you can trust to help, it’s a good way to go. Otherwise, choose one of the other two options. Errors in the filing process can be expensive to correct and the stress can take you away from running and growing your business, which is where you really want to spend time. Knowing how to form an LLC correctly is crucial if you plan to complete the process yourself.

Here is an excellent option, but also the most expensive…

Form an LLC or form a corporation through an attorney.

I firmly believe that there are a couple of steps you should take before deciding to form an LLC or incorporate a business. First, speak to your accountant and second, speak to your attorney. Anyone who tells you this is a bad idea is at best misinformed or at worst is a liar. The two main reasons for formalizing your company structure are liability protections and tax benefits and who knows better about those things than the pros? These are licensed professionals and the advice they give you about starting and running a business should be invaluable. Unfortunately, you will see very quickly that even if the advice is invaluable, their time is very valuable. It’s downright expensive. Depending on where you live and the complexity of your business, these meetings can run from a few hundred dollars to several thousand. The good news is that once you get their advice you can still form the business yourself or use our next option, rather than have your attorney file it for you. This will save you a ton of cash! They certainly know how to form an LLC, but they are very expensive.

Here is our last option. For many people, this is a good blend of the first two…

Use an online incorporation service to form an LLC or form a corporation.

Online incorporation services are not for everyone, but they can be an excellent choice for many people. They absolutely know how to get filings done right, so there is much less chance of an error. Remember errors cost money to correct and more importantly, they can take a lot of time to correct. Incorporation services are not designed to give legal or accounting advice, but they do offer a very cost effective way of getting your company started. Unless you have the skills and know-how to complete everything yourself, I would recommend the following steps:

1. Get the advice of an accountant and an attorney. Let them tell you the right way to structure your business.
2. Contact a reputable online incorporation service and let them handle the paperwork and filings.

This will insure that you get your business started correctly, right from the beginning and will still save you potentially thousands of dollars that you can use to tell potential customers about your new products or services. We know how to form an LLC correctly and can do it for less.

If you are ready to get started, use one of the links below to review our package pricing.

Form an LLC        Incorporate Online

 

 

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