How to Form an LLC

How to Form an LLC

Forming a Limited Liability Corporation or LLC can be the first step you take towards having business autonomy and limiting any liability you may have. There are various ways to form an LLC from companies that will do it for you to handling it yourself.

Prior to setting up your LLC, it is important toensure your business has a name, phone number and mailing address. You need alocation for peopleto be able to contact you that is different from your home address or phone number. You also need this information to put on the LLC application that you can either do yourself or have it done for you.One company that can help you form your LLC and is available online is LegalZoom. LegalZoom offers different packages for creating your LLC that range in price from $99-$750. Additionally, all you have to do is fill out their questionnaire in regards to your business and they will take care of the rest. This can be a simple option especially if this is your first experience forming a LLC. The processing time usually takes up to 30 days, but once your application has been submitted and processed, you will now have a LLC.

Your next option would be to hire a corporate attorney. With this option, you will get specialized, face-to-face attention but it could be costly. The total price for this option could go up to thousands of dollars depending on your attorney’s rate and if there are numerous complexities in your situation. This would be the best and most efficient choice for forming a LLC but it is also the most expensive.

You can also apply to become a LLC with the Secretary of State’s office. There are multiple forms you must fill out and you must fill everything out accurately. This is the most cost-effective option but it is also the most risky. If you have no experience forming a LLC you may make a mistake and have your application denied. Once your application is denied it can be very difficult getting another one approved with the same information. If you have to re-apply you may have to provide information as to why you were initially denied and then, work to ensure you are not denied a second time. If you are denied on your second application, you may not even have the ability to apply a third time unless you form a completely new company. This can cost more time and stress than it is worth even though it is the least expensive option. Unless you know what exactly is needed in order to form a LLC and how to go about the process, it is advisable to hire a service or an attorney to do it for you that way, you can be assured that your application gets approved.

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