If you are interested in forming an LLC, then there are definitely different things you need to think about before going about it. Nowadays, lawsuits are extremely common, especially people suing businesses. The owner of a business, either small or large, needs to keep their personal assets separate from the company. When you have a sole proprietorship the company’s money is your money, and so if you get sued, all of your assets (house cars, etc) can be brought up in a settlement against you. But, if you form an LLC, (which stands for limited liability company) it limits your liability personally, and so only business assets can be brought up in a settlement, not any personal assets.
There are certain things you need to do when setting up an LLC, so here is how to form an LLC. There will be a lot of LLC forms to fill out and you definitely don’t want to mess up on an LLC form, and so it is best to hire an attorney to help you to file all of the necessary paperwork so that you have every properly in order. But, if you are a do-it-yourselfer, you can go online and find the necessary paper work need in order to form a LLC.
One of the first steps in forming a LLC is to fill out the necessary Articles of Organization app that is required for each individual state. You can look online to find out how to fill this out on your own, or your attorney can help you to do it. You can often find free LLC forms online.
Many times people like to form a Nevada LLC because there is no state income tax there, so it makes doing business easier. No matter what state you form an LLC in, after you have filled out the paperwork, be sure to submit the paperwork along with any fees in order to get your paperwork processed correctly and in a timely manner.
Then, once you have the LLC paperwork and your LLC is formed, apply for an EIN (Employer Identification Number) from the IRS. You can get this number instantly and that is the number you will use for tax purposes, instead of a social security number that you would use as a sole proprietorship.
Good luck with your LLC form and forming an LLC.