Today, more and more business owners in the United States are eyeing to become an LLC. A limited liability company is preferred by small business owners mostly, up-and-coming entrepreneurs that want to take their business to the next level. The question would be, how do you form an LLC? To answer that question shortly, there are three main ways to form an LLC. You can form them yourself by paying the state filing fee. You could hire a legal advisor to form your LLC, or better yet, use an online incorporation service that is cheap, fast, and credible. (Please visit this link for the best online llc formation of 2021)
Let’s take a look below at how to form an LLC:
Forming It Yourself
This might be the most complex and difficult method, but it will cost you the least out of the three possible methods. Forming an LLC can take up to 120 days to form depending on what state you are in and the completion of the state’s requirements. Small business owners tend to choose to form an LLC because they don’t want to spend extra money on LLC formation services or lawyers. And that is perfectly understandable because if you do it yourself, you will only pay the state fee of around a measly $40. To form an LLC, you will need to:
- Understand your state’s LLC formation requirements.
- Determine your LLC name. (must be a name that other companies have not yet used)
- Select a registered agent that will be responsible for your company in the event of lawsuits
- File your articles of organization. (some state call its certificate of organization)
- Attach the necessary documents like a business license, employee identification number, your taxes ID numbers, etc, to the state’s website.
- Pay the state filing fee.
Forming It Using a Lawyer
Using a legal advisor or lawyer is the most expensive method out of all three, but it has a high percentage of succeeding due to the lawyers’ well-versed knowledge of the LLC law. They cost roughly $1000 up to $2000 depending on which firm you’re engaging with. The biggest benefit to cheer you on from spending all that dough would be that the state would likely approve your LLC formation because your hired attorney will draft a convincing contract that can protect your rights and anticipate any liabilities that may come your way. That contract will save your business twice or even triple the money from possible costing lawsuits.
Forming It Using Online Formation Services
This method is gaining a lot of popularity these days and the cost is not that bad which is around $100 to $900 depending on the businesses themselves. An LLC formation service can help you file and apply all of the necessities and requirements without much hassle. You will have to provide them with your basic information and documents like personal ID, Employer Tax ID, Sales Tax ID, etc., and they will do the rest. If you don’t want to put in the effort and spend a lot of money, this might be the best possible route for your LLC formation.