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Written by : Ming Kolinski |
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hey everyone i'm mike black and welcome to this video on how i filed my llc every tuesday i release a new video that goes more in depth on topics i want to cover further during our million dollar comeback vlogs released every thursday where i have 12 months to build a million dollar business starting with nothing before we get into this video i want to make this very very clear that this is not legal advice not legal advice one more time not legal advice this is just what i did so i will explain it in first person because it's not legal advice there are three steps i took to following my llc and making it a corporation step one file the llc with my state step two get an ein and step three file form 2553 to tell the federal government i'm an s corporation so let's start with step one i headed over to my state's very outdated website and i found this by typing in google file my llc in my state so we typed in file llc texas and now i click on our site for texas once i was here i was blown away by how well they use my tax dollars on their amazingly built site and how easy they made it to navigate so please do not get discouraged i'm sure your site is just as poorly built as this one but it's important that you just take your time and follow the directions so on here they have this thing called sos direct i click on it you click enter site and you have to make some form of a username with texas so i did that and then i hit submit okay so the first thing they allowed me to do was to look up if anyone else had my business name i looked it up and no one did so that was good so it was time to file the llc because every state is different i'm not going to do the play by play but this is what needs to be decided on what's important is that i choose which llc to file do i want to be a single member llc a partnership or a corporation a single member llc is going to be much cheaper but a corporation is going to save me a lot of money in self-employment taxes so i chose to be an llc corporation this will cost me a little more money up front and it will be a little more expensive to file taxes every year but i will take the significant self-employment tax savings all day if i'm planning on making 45 000 a year or more which i am so after filing my llc corporation i waited two days and i got my articles of incorporation this is what i needed for my next step and it's very important that i put this somewhere safe as i will need it for a lot of things in the future like setting up a bank account i personally like storing these types of things on google drive step number two now that i have my articles i need to get an ein number from the irs scam services like northwest registered agent which by the way claim they only charge 39 to file an llc they charge 50 just to file an ein which you can see me freaking out about the end of the week 15 vlog when you see how easy this is you'll laugh at how big of a scam this is northwest registered agent i think this is what i'm going to use whoa add an ein out to your llc what the f for 50 bucks so i headed over to google and typed file ein irs when i got to the site i was actually blown away with how easy it was compared to the state's website and un sarcastically i was actually pretty impressed with how easy it is i followed the directions and very quickly got my ein so you can see on the site you just click on apply now and then again i just followed the directions begin app llc i then stored this in a safe place on google drive because the ein is very important for a lot of things that i'll need to do in the future like open a bank account the final step for me was to file a form 2553 with the irs to tell them i want to be recognized as an s corporation and not a c corporation they both get taxed differently and i would like to be an s corp so i went to google and i typed 2553 irs and i downloaded the pdf filled out the form and faxed it to wherever it needed to go which can be found on the form you can see it's very self-explanatory just follow the directions and then the last step of actually faxing it i just went to google and typed in free fax and i found a service to do this that was it we filed our llc in total i spent three hundred nine dollars a file the nine dollar fee was an extra fee for using my debit card with the state of texas and now i have an llc s corporation really beats paying 550 to file and only took about an hour of my time to learn all this and do it myself so that's it for this week's video i hope it was helpful seeing how i went about structuring my llc again very easy to do if you enjoyed this video please hit the like button subscribe and hit the notification bell if you'd like to get notified every time we release a new video that's it for now i'll see you in next week's video
Thanks for your comment Nga Ovall, have a nice day.
- Ming Kolinski, Staff Member
hey guys welcome back to the channel so a question that i get all the time is charlie what is the best way to start an llc so in this video i'm going to show you the best easiest and most affordable way to start your llc today this is exactly how i've created my business entities and it's crazy because you guys can literally set up your llc in like five or ten minutes so the first part of the video is me just going over what llc's are and why they may be beneficial to you as an entrepreneur or small business owner the second part is going to be me taking you step by step through inc file which is the website that i use to set up all my business entities so if you do want to skip directly to that part i will put the time code down below right now so without further ado let's get started so firstly what is an llc an llc is a type of business structure that stands for limited liability company it's perfect for startups and entrepreneurs and i always tell people if you want to take your business seriously it may be good to start an llc because there's so many benefits first of all they limit your personal liability what this means is that if your company gets sued they can't come after your personal assets creating an llc also allows you to raise capital from investors and of course they do carry some big tax advantages yeah diving a little bit more deeply into the whole limited liability part if your business does something wrong and they actually get sued by someone then only the assets that are inside that llc are at stake so this means that things like your house your cars and any other personal assets are safe that's where the term limited liability comes from now if you are creating a business and you are looking for outside funding llcs allow you to raise the outside capital and of course llcs can have very specific tax advantages rather than starting a c corporation which actually gets double taxed with an llc this is called a pass-through entity so you're only getting taxed one time now i'm not going to go into too many of the details about the whole taxation of llcs because you can be taxed as an lc or as an s corp but just know that when it comes to this tax stuff i recommend talking to your accountant and figuring out what works best for you yeah for 99 of you guys out there who are starting your own business i'd say an llc or an lc uh taxed as an s corp is going to be right for you it's very easy and affordable to set one up so in the next section i'm going to actually walk you through the whole setup process so i'm here in ink files main page you guys can get to this link by clicking on the link in the description below and what i'm going to do is i'm going to come up here and click start my business so it's going to take us this page where it's going to allow you to actually register your business entities so first i'm going to click entity type and i'm going to select which one i want we're going to be doing an llc and then you're going to select your state of formation so it's going to be a little bit different for each state but most of things are going to be the same i'm in california so i'm going to click on that here it's going to take us to the different i guess plans that they have so you have the silver one which is 75 this is basically completely free because you're only paying the state fee of 75 bucks no matter what you do you will have to pay the state fee so if you do want to you know not pay anything then you guys can choose this one and it's gonna come with pairing and filing the articles of organization it's going to allow you to do unlimited name searches and it's going to give you a free registered agent service for one year now that is not the most popular plan it's actually not the plan that i recommend so when i set up my business entities i always used the gold plan this one is a little bit more comprehensive and it just makes the whole thing a lot lot easier so especially if you're just doing this like this is your first time making a business entity then you know this one's probably going to save you a lot of time and headache so yeah this one is 224 and the package fee is 149 so that's basically what you're paying to inc file to set this up for you and then the state fee is about 75 which you have to pay this one's going to include the same things as the silver except it's going to actually automatically create an ein business tax number for you so that's going to save you some time it's going to file the irs form 2553 it's going to actually give you a bunch of these like documents like the operating agreement the banking resolution all these things are pretty cool to have and they just save you a lot of time so honestly in my opinion i think this one is probably the best for most of you if you're down to do all this stuff by yourself and figure it out then yes you can save that extra 149 package fee but as a business owner you want to focus on on building your business not all this really boring stuff and of course they have their platinum plan this is their most expensive plan but also most comprehensive this one's 374 dollars at the moment and that includes the package fee of 299 dollars and the mandatory 75 dollar state fee this one's going to be just like the gold plan except that you're going to have a little bit more support you're going to have expedited filing and you're going to get that domain name and business email so for this one i'm just going to go ahead and select the gold package because i think that's going to be the right one for a 95 percent of you guys watching this video so it's going to have you enter in your contact information as well as your mailing address so i'm going to do that right now but so after all that is entered in i'm going to click next it's going to process the information and now in the next section it's going to allow you to select your state filing time now the original time it takes for california is around four weeks it might change a little bit for depending on what state you guys are in but they are going to have an expedited filing option that you can add on as well so if i want to just keep the four weeks filing time with the estimated formation date that is right here then i can just select that or if i want the faster five day business filing time i can go ahead and select that so assuming that i don't care too much about the filing time then i'll select that but if you are in a rush then i would go ahead and select the faster one here it's going to allow you to enter in your company information so this is stuff that you'll want to at least brainstorm beforehand so i'm just going to enter in a biz entity prep services just as an example since i'm not actually setting up this llc right now then i'm going to select the designators so you can choose any of these does not matter but i'm just going to select this one and it's going to give you a preview of what your company name will display as so in this case biz entity prep services llc then it's going to have you select your business type or industry so for this one let's just say it's account acc
Thanks Benito your participation is very much appreciated
- Ming Kolinski
About the author
I've studied edaphology at Concordia College in Moorhead and I am an expert in forensic anthropology. I usually feel indifferent. My previous job was developmental psychologist I held this position for 16 years, I love talking about equestrianism and hooping. Huge fan of Melissa Ordway I practice canoe slalom and collect chemical elements.
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