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Written by : Katelyn Bozzi
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and LLC is a limited liability company a legal entity also business structure that's created by state law an LLC can be used to run a business or it can be used to hold assets such as real estate vehicles boats or aircraft the owners of an LLC are called members an LLC can be owned by one person called a single-member LLC or an LLC can be owned by two or more people called a multi-member LLC the LLC is created by filing LLC formation documents with your state and paying the filing fee so why would you form an LLC the number one reason is for asset protection by forming an LLC you create a protective wall between your business and your personal assets your personal assets include everything that you own your home cars trucks bank accounts investment properties votes jewelry etc if your business is sued creditors can only attack the assets of the LLC to settle those debts and liabilities your personal assets are safe and secure they are not considered a part of the business again without forming an LLC your personal assets are at risk if your business is sued so let's talk about some language mistakes that people make regarding LLC's there are two common mistakes that people make when talking about LLC's first they say I want to form a limited liability corporation you cannot form a limited liability corporation there is no such thing an LLC is a limited liability company we also hear people say I'm going to LLC myself again this is incorrect you cannot do that you can't LLC yourself but you can form an LLC remember the LLC is separate and apart from you it's not you you form the LLC then you own and manage that LLC it's important that you understand the difference in these terms so that you don't sound like an idiot and you can speak intelligently about your business now let's discuss the basics of LLC's versus corporations a lot of people ask us should they form an LLC or a corporation let's discuss the major differences between the two LLC's don't have to elect a board of two factors corporations do LLC's don't need a hold board meetings corporations do LLC's don't have to keep a record of all of their meetings corporations do LLC's aren't subject to double taxation and corporations are and LLC's can distribute profits cover they want what corporations can in short LLC's are the most popular and most flexible business structure for business owners entrepreneurs and real estate investors LLC's are inexpensive to set up you'll pay a one-time filing fee to form your LLC and the setup fee is inexpensive compared to forming other types of business entities like corporations losing your personal assets is much more expensive than setting up your LLC and even if your state has higher filing fees they are well worth the assurance of knowing that your personal assets are fully protected LLC's are also low maintenance once it's set up there are only a couple of requirements to keeping it active the first requirement is sending your annual report to the state and note not all states have annual report requirements and the second requirement is to file your state and local taxes other than that the only additional work you need to do is file a simple form if you change your address LLC's are quite easy to maintain so how do you pull an LLC you pick a name for your LLC you prepare your LLC formation documents you submit your documents to the state and pay the filing fee and then you wait for approval yes there are a few more steps but those are the basics in getting your LLC started we go into more details and on all these topics mention the rest of the videos in our series
Thanks for your comment Christiane Mccullin, have a nice day.
- Katelyn Bozzi, Staff Member
hey how's it going guys john kento's and in today's video what i'm going to cover is a very important question a lot of you guys continue to have and that is how to start a business as an LLC to stick around and as a disclaimer before we jump right into everything and could really give you guys an overview as far as like what an LLC does how to start it where to go and more importantly how it applies to an online or offline business then before we get into all those details I just have to make a disclaimer I am NOT a lawyer so I'm not able to offer you guys any kind of legal advice but I will be able to connect you guys to a few online resources I'll be able to help you guys with any kind of legal questions that you may have pertaining to your specific situation so in this video we're just going to go over the different steps where to file if you want to do it on your own and then I'm also going to give you guys resources if you want to have somebody help you in the process all right so let's jump right into what exactly an LLC is when LLC is known as a limited liability company so ultimately what it ends up doing is it ends up helping business owners that are just starting out to really protect and separate their business from their personal assets so in the case of any kind of lawsuits or anything pending against your guyses company you're not personally liable for it and that's the beauty of the LLC is that it protects you gives you that legal veil so that's just one aspect of the LLC another aspect is obviously an attacks purposes allows you to have different tax incentives and benefits so as always you want to definitely consult with an accountant or a bookkeeper or a legal opinion for how it pertains to your specific tax situation because it all depends on different brackets that you're in and of course when you have an LLC you really are more credible your businesses in just a one-stop shop it's an LLC is a corporation registered at the state level so people know that you're taking your business a little bit more seriously you have some credibility behind it and I think another one of the cool benefits of an LLC is that you're able to sell parts of your company and return for investments so you're able to bring other people on board that will want to invest in your business for a certain equity stake and then their assets are also protected because they're not necessarily a part of the business they're just investors in the business so as long as the LLC has it has a stuff buttoned up there pretty protected from any type of negative things that can happen with the company so those are just some of the main benefits of an LLC I know there's a bunch more and I know that you guys may want to know what else is on there so I will be linking some some resources and links in the description so just always make sure you check the description of the videos because I do expand and elaborate a little bit more on anything that I talk about in the videos itself right now that it may have forgotten so click on over to the link so you guys will see a bunch of different resources and I'll start pointing you in the right direction so you can get started really quickly alright so with that being said we'll jump into the different steps that it takes for you to actually file your LLC with your state so then this way you're aware of what steps are upcoming where you need to go and more importantly how much it may cost so the first step in starting your LLC is then knowing where you need to go and register this so in Nevada I'm actually based out of Las Vegas so in Nevada we actually have a website called Nevada silver flute and what that is it's a state sponsored and created website that handles all of the business licensing and all of the registration online but with that online portal you're able to pretty much create your entire LLC register your business license file all of your paperwork online they make it super easy and simple for you to do now in your state I'm pretty sure there's a website similar to it but in some cases there may not be it may not be that simple you may have to go to a couple different sites and if that's the case for your situation I do recommend that you definitely do some google searching just make sure that you're looking up your state's business registrar your state LLC formation and just look at the end of the URL to make sure it's a dot gov address or a dot CA or a dot state address that is a legitimate site and then those websites will more than likely help you and guide you through the process of actually submitting all your paperwork but in the case that you don't have that and it may be it's too complicated there is going to be some resources down below that for a nominal fee they streamline the entire application process you do it on one website and they follow everything else for you but just be aware that your state may already have an online portal where you guys can do everything yourselves but once again if that's overwhelming click the links down below some of them are like corporate Rocket Lawyer Legal Zoom they all offer it for a very discounted price so just click the links down below to learn more about those that's going to be your first step in in actually creating your LLC it's just know where you need to go and file alright don't don't get scanned by anybody don't pay extra learn where you need to go and file because once you have that down and you're able to pretty much just submit your applications and you're good to go so the next step is in actually forming the LLC some of the paperwork involved is going to be like the articles of organization alright so in this paperwork what it's pretty much telling the state is telling them who's involved with the business where is the business located and any other important information that your state requires so the articles of organization is one piece of the paperwork that you're going to be submitting next up another paperwork involved with the process is going to be the list of officers now the list of officers is something that's going to be filed every single year and they're and the state is going to require it from you every single year so when you first start your LLC I believe they give you like 30 days for you to file this so that's just going to include who's involved and who's actually managing the business whether it's managers or members and there's different legalities to that so once again just make sure you look into it before choosing either one and the list of officers is going to do the thing that gets published online as well so it'll actually tell everybody who's a part of that business and all of those informations the state needs to have that every single year so that's going to be something you always file and resubmit on a yearly basis the next thing involved with your LLC is going to be an operating agreement but just keep in mind that an operating agreement isn't necessarily filed with your state like they're not going to request it from you so this is going to be a legal document that you create between your business par
Thanks Cyril your participation is very much appreciated
- Katelyn Bozzi
About the author
I've studied agricultural education at Plymouth State University in Plymouth and I am an expert in immigration policy. I usually feel enraged. My previous job was infantry officers I held this position for 10 years, I love talking about knife making and jet skiing. Huge fan of Buddha I practice shooting and collect games.
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