Whether you’re an experienced entrepreneur or just starting out, creating an LLC with your best friend as the only other member could be a great way to legally form an online publishing or marketing company.
Unlike a sole proprietorship, an LLC has additional features that offer greater flexibility and protect your investment.
In this blog post, we’ll guide you through the steps to create an LLC that can be used to form your company. We’ll also cover the pros and cons of using an LLC versus a sole proprietorship to form your business. By the end of this article, you’ll have a clear idea of whether or not this route is right for you.
Why Form An LLC?
An LLC is a great option for entrepreneurs who want to form a traditional business, but also want to retain a lot of the characteristics of a sole proprietorship. If you’re looking for a versatile business entity that can adapt to the ever-changing world of online business, then consider using an LLC.
One of the most valuable things about an LLC is its ability to form a separate legal entity for your business. This means that all your personal and business liabilities are legally distinct from each other. In the event that your business does fail, you simply dissolve the company and move on with your life. Businesses can also be more easily sold due to their separate legal status.
Another benefit of separating your personal and business assets is that it creates perfect separation of your financial interests. If you’re just starting out and don’t have the money to pay huge legal fees, this route is ideal because it will allow you to keep control of your personal finances while giving your business the protection it needs.
How Do I Form An LLC?
All you need to do to form an LLC is to visit theLLC Company Page, fill out the online form, and wait for the state to approve your entity.
If you’re using Google Chrome, you can simply click the box next to “Form an LLC in any state” to start the process automatically.
On the form, you’ll have to provide a name for your new company (can be any name you choose), the city (your state will suggest one), and an email address. You’ll also need to set a password for yourself as the primary contact person in case anyone has questions about the company. Make sure to use a strong password, and don’t use passwords that can be easily guessed. You’ll also want to decide at this point whether or not you want the company to be publicly traded.
Once the state has approved your entity, you can download a certificate of incorporation, which you’ll need to file with the state to officially start the company. From here, you can retrieve a corporate resolution, which you’ll need to complete before you can start doing business as this company. Once you’ve filed the resolution, you can start using the company’s name for advertising and publishing purposes. Finally, you’ll need to send notice to your state’s secretary of state that you’re forming an LLC.
This is a fairly straightforward process that can be done online in about ten minutes. While it might seem daunting to form an LLC due to all the bureaucratic red tape, the paperwork is fairly simple and shouldn’t pose too much of a problem for most people.
What Is The Difference Between An LLC And A Sole Proprietorship?
As mentioned above, one of the most valuable features of an LLC is its ability to form a separate legal entity. In comparison, a sole proprietorship does not offer this same luxury. A sole proprietorship is a simpler business entity and is ideal for sole traders who want to create a business opportunity for themselves. You’re still able to keep all of the profits from the business, but you and your partner are personally liable for the debts and obligations of the company.
Unlike an S-Corp, you don’t have to keep track of your individual share of profits and losses when you form a sole proprietorship. Instead, you simply report your business’s earnings at the end of each year.
Is An LLC Right For Me?
If you’re looking for a business opportunity that allows you to retain a lot of the perks of a sole proprietorship while also benefiting from the more reliable business structure of an LLC, then this could be the right option for you.
Traditional business owners who want to stay connected to their customers can use an LLC to provide a safe and reliable platform for their online activities. As a digital marketer who develops content for websites and social media, I see an LLC as a great option for me because I can create a branded blog for my clients while also offering them online marketing services.
In summary, if you’re looking for a versatile business entity that can adapt to the changing world of digital marketing and publishing, then consider using an LLC to form your company. In doing so, you’ll be able to take advantage of the perks that this structure provides while also ensuring that your business is protected should anything happen.