The prospect of forming an LLC by yourself can be a daunting prospect. The question is: Do you really need one? If yes, what does an LLC formation service really do? Here we will examine the efficacy of the LLC formation services and answer if you really need them.
Forming a Limited Liability Company (LLC) is entirely possible to do by yourself, however, there are companies that will do it for you at a reasonable cost. What these companies might offer you is peace of mind knowing that the people forming your LLC have done so many times before. You might be a novice, but they have years of industry experience. One of the industry-leading businesses that help with LLC formation is ZenBusiness. They are recommended by TRUiC (The Really Useful Information Company) for both their efficacy and their affordability.
These are some of the benefits that an LLC formation service provides:
- Know-It-Alls (In the best possible way):
They have business specialists who have been working in the legal and business fields for a long time. As they have a wealth of experience, they are able to give the client specialized guidance and general support.
- They do the paperwork for you!
You will need to provide some answers to questions and then they are able to file the necessary legal documents on your behalf and spare you the trouble.
- Check your name.
They can make sure that the unique name that you have chosen is indeed unique. They make sure that you are able to use the name that you have chosen and that it isn’t already being used. Should it turn out that the name isn’t available, you will be notified so that it can be rectified.
- Act as your Registered Agent.
For an annual cost of $99, the business acts as your Registered Agent and handles all of the legal needs of the company on your behalf.
- Help with your taxes.
For an annual cost of $110, ZenBusiness will make sure that your taxes are hassle-free and always up to standard.
Too expensive? Do it yourself.
As you can see, there are benefits to hiring an LLC formation service and saving yourself some trouble. However, should these costs be too high, TRUiC provides an in-depth look into how to form an LLC in California without having to pay for an external company to do it for you. Visit site for more information. As an overview, these are the six simple steps that you will need to take if you choose to form the LLC in your private capacity:
Step 1: Choose a new name.
After having filed the Articles of Organization with the California Secretary of State (costing $70), you have the pleasure of choosing a novel name for your business. You have freedom when doing this, but the name will have to comply with naming guidelines for a California LLC.
Step 2: Hire a Registered Agent
Employ a California Agent for Service of Process who has the authority to send and receive legal documents on the behalf of the LLC. This person has to be a resident of California, or the corporation has to have the authority to operate in the state. However, should you have this authority, then you can do it yourself or use someone in your company.
Step 3: File the California LLC Articles of Organization
This document needs to be filed in order to register your LLC. It can be done online, by mail, or in-person. The document needs to provide the name of the LLC, the name of the registered agent, and give a list of services provided by the business. There is a state filing of $70 as mentioned above.
Step 4: File the Initial Statement of Information
This document needs to be filed within 90 days of the formation of the LLC and can be done online, in-person, or by mail. The document also has to stipulate whether the LLC is member-managed or managed-managed.
Step 5: Create a California LLC Operating Agreement
Unlike in some other states, California requires that you submit an operating agreement outlining the structure of the ownership and highlighting operating procedure. This document is necessary because it ensures that all of the owners understand the business operations the same way and it reduces the risk of future disagreements between members.
Step 6: Get an EIN
An EIN is the Employer Identification Number that’s issued by the Internal Revenue Service (IRS) to LLCs. This number is necessary should you hire employees, wish to open a business bank account, and for tax purposes.
As is evident, the process of forming an LLC is entirely do-able by yourself. However, should you prefer the responsibility to be taken off of your shoulders, there are viable and affordable options available to you.
