can you start an llc without a lawyer [Video]

Last updated : Aug 2, 2022
Written by : Willy Picolet
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can you start an llc without a lawyer

Should I establish myself as an LLC?

The main reason to start an LLC is that they give members personal liability protection. This means that an owner isn't at risk of losing their personal financial assets if the LLC goes into debt or is sued. Sole proprietorships and general partnerships do not offer personal liability protection.

Where is it cheapest to form an LLC?

  • Iowa — LLC Filing fee: $50.
  • Montana — LLC Filing fee: $50.
  • Utah — LLC Filing fee: $70.
  • California — LLC Filing fee: $70.
  • Delaware — Filing fee: $90.
  • Indiana — Filing fee: $95.

What is a sole proprietorship vs LLC?

An LLC exists separately from its owners—known as members. However, members are not personally responsible for business debts and liabilities. Instead, the LLC is responsible. A sole proprietorship is an unincorporated business owned and run by one person.

What are the main differences between an LLC and an S corporation?

LLCs can have an unlimited number of members; S corps can have no more than 100 shareholders (owners). Non-U.S. citizens/residents can be members of LLCs; S corps may not have non-U.S. citizens/residents as shareholders. S corporations cannot be owned by corporations, LLCs, partnerships or many trusts.

What are 3 disadvantages of an LLC?

  • Cost: An LLC usually costs more to form and maintain than a sole proprietorship or general partnership. States charge an initial formation fee.
  • Transferable ownership. Ownership in an LLC is often harder to transfer than with a corporation.

What can I write off as an LLC?

What expenses can you write off as an LLC? There is a long list of expenses that you can deduct as an LLC. Some of the main operating costs that can be deducted include startup costs, supplies, business taxes, office costs, salaries, travel costs, and rent costs.

What state is the easiest to form an LLC?

  • Delaware is the most popular state to file an LLC in because it has a strong reputation for being business-friendly and offers a fast filing process with increased protection for owners.
  • Wyoming offers low fees and great tax benefits for people looking to start an LLC.

How do I apply for LLC?

  1. Choose a Business Name.
  2. Check the Availability of Your Business Name.
  3. Register a DBA Name.
  4. File Your LLC's Articles of Organization.
  5. Designate a Registered Agent.
  6. Draft an Operating Agreement.
  7. Fulfill the Publication Requirement.
  8. Obtain Business Permits and Licenses.

What states have no income tax?

  • Wyoming.
  • Washington.
  • Texas.
  • Tennessee.
  • South Dakota.
  • Nevada.
  • Florida.
  • Alaska.

Is it better to be self employed or LLC?

You can't avoid self-employment taxes entirely, but forming a corporation or an LLC could save you thousands of dollars every year. If you form an LLC, people can only sue you for its assets, while your personal assets stay protected. You can have your LLC taxed as an S Corporation to avoid self-employment taxes.

Can an LLC have one owner?

A single-member LLC that is a disregarded entity that does not have employees and does not have an excise tax liability does not need an EIN. It should use the name and TIN of the single member owner for federal tax purposes.

What are the 3 types of LLC?

  • Single-member LLC for the sole-proprietorship (solo entrepreneur)
  • Multi-member LLC (member-managed LLC or manager-member LLC)
  • Domestic LLC and Foreign LLC.
  • Series LLC.
  • L3C Company (low-profit LLC)
  • Anonymous LLC.
  • Restricted LLC.
  • PLLC and LLC.

How is LLC taxed?

Working of LLC Taxes For the purposes of federal income tax, LLCs are treated as pass-through entities, which means that LLCs themselves do not pay taxes on their business income. It is rather its members who pay the taxes on their share of LLC's profits.

What is better for taxes LLC or S Corp?

LLCs. As an LLC owner, you'll incur steep self employment taxes on all net earnings from your business, whereas an S corporation classification would allow you to only pay those taxes on the salary you take from your company. However, itemized deductions could make an LLC a more lucrative choice for tax purposes.

What are the benefits of being a LLC?

  • Limited Personal Liability.
  • Less Paperwork.
  • Tax Advantages of an LLC.
  • Ownership Flexibility.
  • Management Flexibility.
  • Flexible Profit Distributions.

Why an LLC is the best option?

An LLC lets you take advantage of the benefits of both the corporation and partnership business structures. LLCs protect you from personal liability in most instances, your personal assets — like your vehicle, house, and savings accounts — won't be at risk in case your LLC faces bankruptcy or lawsuits.

Why is LLC may not beneficial?

Profits subject to social security and medicare taxes. In some circumstances, owners of an LLC may end up paying more taxes than owners of a corporation. Salaries and profits of an LLC are subject to self-employment taxes, currently equal to a combined 15.3%.

Can my LLC pay for my cell phone?

A corporation can only deduct expenses that it incurs. If your cell-phone is registered to you (and not your corporation) and you use your cell phone partially for business purposes, then you can 'charge-back' the business use portion of your cell phone bill to your corporation.

Can LLC write off vehicle?

Can my LLC deduct the cost of a car? Yes. A Section 179 deduction allows you to deduct part of or the entire cost of your LLC's vehicle.

How do LLCs avoid taxes?

A general Corporation making a Subchapter “S” Election or an LLC with or without a Subchapter S Election pays no federal tax on its taxable income and no employment taxes on its distributions to stockholders.

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can you start an llc without a lawyer

Comment by Carmen Zlotnick

hey welcome back crystal a cpa here and i'm excited to share with you how you can start an llc without using a lawyer now i'm just going to say this because i have to but of course there's absolutely nothing wrong with hiring a lawyer to help you set up your llc and there are many benefits of doing so but will hiring a lawyer cost you yes but is it necessary no is it required the answer is again no i understand the steps that are required for forming an llc since i have helped quite a few new business owners do this in the past and i've even started a few of my own and guess what i'm not a lawyer so in today's video i'll be going over the steps in doing this yourself and what you need to consider to set yourself up correctly from the beginning if that sounds good please hit the like button for me so other business owners like yourself can benefit from this video alright let's get started first things first because i get this question a lot just form your llc in the state where you live now i can give you a laundry list of reasons why this makes the most sense but just know that there is not a tax or legal reason to form your llc in any other state besides the state you live in okay so no need to complicate that part with that being said whether or not you are forming your llc for the legal or tax benefits you need to know that forming your llc is a state process meaning there aren't any federal forms you need to file in order to form your llc so keeping this in mind each and every state will have a slightly different process for forming llcs but it all starts on your state's secretary of state website if you've never been to your secretary of state's website you'll soon find out that's pretty much the website where a lot of your administrative business filings happen and also the place you can find general business information to find your secretary of state website just google your state along with secretary of state and it should be the first link that ends with dot gov here is what it looks like for georgia and you just need to find the section for business or starting a business once you click on that section there should be a link that says something like register in llc with the secretary of state before you proceed with registering your llc you're going to need to gather some information beforehand to make this process super easy for you first you need to know what you'll name your llc i'd even make sure to have a backup name in case the state doesn't approve your first choice in some cases they'll even require that you provide a secondary name option so have that ready second you need the name and address of the person filing the llc which is probably you next a valid email address and mailing address of the business the fourth thing you'll need when registering your llc is the registered agent information here's where some questions might come up every llc must have a registered agent a registered agent is a firm or individual that accepts tax and legal documents on behalf of your llc the good news is that as the owner of your llc you can appoint yourself as the registered agent just keep in mind that if you're someone who travels a lot or is generally unavailable during normal business hours you're not the best person to be the registered agent you can always hire a firm cpa or lawyer to be your registered agent if you need to the next piece of information you'll need when forming your llc are the names and addresses of each organizer if it is just you then simple enough you'll enter your information but if you also have partners you'll want to provide their information as well lastly you'll also need a form of payment to pay your filing fees the fee required will vary state by state but is usually somewhere between 50 to 300 but it could be more once you submit your information which all can be done online your llc should be confirmed in about two to three weeks and you'll get an official articles of organization from the state via email that is all you generally need to form your llc but it's really important that you consider a few more things this is where hiring a lawyer could benefit you because the secretary of state website is not going to tell you each and everything you need to do but that's why you're watching this video because you know just forming your llc online is not the only steps you need to take if you want to do this thing right so depending on your industry along with filing your llc you'll also want to file any permits or licenses that are required you can do this after your llc is formed but before you start conducting business for example if you are a food service business you might have to apply for a food service license or if you're planning on starting a daycare you might have to apply for a child care license similar to forming your llc the secretary of state website should also have a section for licensing so you have your llc and the permits you need now to be in tip-top shape try putting together an operating agreement an operating agreement is a business document used by llcs that outline the business's financial and operational processes rules and regulations the purpose of it is to govern the internal functions of the business that suits the needs of the business owners some states even require to have this document in place when filing your llc but without an llc operating agreement the state's default rules will govern your llc meaning that each state has its own rules that apply to llcs that do not have an operating agreement this is not a good thing because the state's default rules are extremely general and may not best suit the needs of your business plus you are the business owner and you know what's the best way to operate your business just put it on paper and sign it next consider getting an ein or an employer identification number this acts as your llc's social security number and i'd 100 percent recommend this reason being is one of the most important rules for maintaining your llc is keeping your business and personal funds separate and the easiest way to do this is by opening a business bank account which 99 of all banks require you to have an ein to open a business bank account you can easily get an ein from and applying for one usually takes a day or two to come in hey you're on a roll with getting your llc up and running but i want to make sure you are aware of everything you need to know so also remember that when you do have an llc you have to file what's called an annual report each and every year it's not as difficult as it sounds but it is required you would do this on the secretary of state website under the business section and this is where you would update the state on any changes that may have occurred with your llc like a change of address or ownership and of course the state will also want an annual fee from you to maintain your llc so be prepared to pay that it shouldn't be much higher than your filing fee but in states like california it could be as high as eight hundred dollars all right lastly i wouldn't be a cpa if i didn't tell you about the tax

Thanks for your comment Carmen Zlotnick, have a nice day.
- Willy Picolet, Staff Member

Comment by vodarnamJ

last year i made a video and it was called do you need an llc and i noticed that that video was very successful and i thought i'd do a follow-up to that video and i will actually show you how you actually set up your own llc live because i'm i'm actually i need to set up an llc for a new business that i'm starting so um what i want to do in this video is show you uh how to start an llc without being a lawyer so you may be asking what do i need an llc for why do i need to start an llc and uh i want to first go over some of the reasons why you may want to start an llc you basically want to start an llc so that you can do business if you want to accept checks you start a business you want to start accepting checks and payments uh you may want to start an llc under your business name instead of putting it under your name um the advantages to starting an llc versus doing business on your name is it separates yourself from liability for example if you started a grass cutting business you were cutting someone's grass and then um i don't know you accidentally ran over somebody's cell phone while you were cutting grass because they dropped their phone to grass so that person could try to sue you for breaking their cell phone and um when you get sued they could go after your personal business account uh when you set up an llc under your grass cutting business they can only suit the assets that are in the bank account or the assets of the grass kind of business so they won't take the million dollars you have saved uh in your personal bank account um also another getting advantage llc is you can uh get a business loan uh the small business association or administration they're giving out a lot of business loans due to the pandemic so you can take advantage of one of those business loans also when you start an llc you can apply for business credit um you know if you need to start a business you get a hundred thousand dollars and you got good credit you can apply for business credit and get that um and also like i said to separate liability is also one of the main reasons that you may want to start an llc that just separates yourself from the bank account of uh the business you may even have business partners that um you went into business with all equal partners and you don't want him seeing what's going on in your bank account so you'll have a business account and that'll be for you guys to work with and it'll be transparent with both y'all could have an account and i mean both y'all could have like a debit card for business expenses and things of that nature so that's some of the reasons that you may want to start now let's see um getting your llc registered in your state now um the first the first step that you want to do if you want to start a llc without a lawyer the first thing you want to do is find your um your state your official state website and i'm going to show you exactly how to do that right now i want to just show you how easy it is to find a state website but you got to be careful because when you're trying to set up an llc there's going to be a lot of lawyers and a lot of law firms trying to get you to click on their ads which usually show up at the top uh so what you want to do is you want to find the official state website so let's just say um i'm in arizona right now and i want to say start llc in arizona like right here northwest registered agents this one that comes up at the top the one that shows up at the top this isn't the one i want to go to this is some 34 out the door now you might want to use one of these companies if you want to spend money um you may want to go to one of these services you may want to spend 49 but you're gonna end up spending the 49 dollars on top of this the filing fees so it's not going to just be 49 you can do it on your own and i'm going to show you how um his 10 steps to start a business in az this is a this is a government so what you want to be looking for is these government websites stuff that looks um official state websites um not how to start an or legal zone runs a lot of ads um let me see i would go to this one right here so this looks like an official um arizona corporation division personal domain and choose a name you want to find wherever you can online online llc from arizona arizona corporations commission so this would be the site in arizona to start the filing um i've never done it in arizona i usually um start my businesses at one of my parents home and dresses so i have dresses in new york and having dresses in ohio uh where homes where my parents actually have homes because i move around a lot i live in different apartments and i don't like to um i change addresses probably every other year this is probably the longest i've stayed in one place so um you want to you want to um connect your business to an address that you probably it's a permanent address or you may um connect it to a po box but i'm just thinking it's best to try to connect your business to a permanent address so like i said um social business view documents this looks like the arizona corporation site now let's do one for let's say michigan michigan llc files online so every for every state okay so this one's that's actually at the top state of michigan limited liability company domestic filing so yeah what you want to do is you just want to go through and you first want to figure out certificate of limited limited liability the articles of incorporation select an online form you have to figure out which type of llc that you want to file um there's there's corporations there's uh there's a lot of different llc's and that's something that you may want to consult with a lawyer about but um for the most part if you're just trying to set up llc upsets you can get a business account uh you may just be doing a single member llc so you have you have to do your own research and figure out which type of llc that you want to set up uh let's click on this and see what it says and this is in the state of michigan the goal is you have to find whatever state that you're in and um go from there the name of the limit so you put the name of the company um let's say it's gonna call it presley presley um music or whatever unless the articles are location so yeah this is where you just fill out the forms and put your information and um at that point these as you can see there's different filing fees there's a 24-hour review fifty dollars for a formation document an application for a certificate of authority same day review 100 bucks uh two hour review 500 so right here one hour review complete within one hour on day so i mean in michigan it looks like you can start your your business in an hour if you're willing to pay uh a thousand dollars um for whatever reason it may be urgency and you want to start your business quick so um i want to show you me actually filing setting up a business so yeah like i said you want to find the official state website that's the first step the next step is um figuring out find them on llc online registration which i just showed you before you find the site you find o

Thanks vodarnamJ your participation is very much appreciated
- Willy Picolet

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