10 Tips for Starting your Own Business [ Must Watch ]
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Thanks to https://www.allbusiness.com/what-is-an-llc-2659342136
Millions of startup businesses have been formed as Limited Liability Companies (LLCs). Businesses as diverse as restaurants, retail stores, online companies, and real estate have elected to be formed as LLCs.
In this article, I answer 10 of the most frequently asked questions about forming and operating an LLC, including what an LLC is.
An LLC is a popular structure for forming a company. LLCs, S corporations and C corporations are among the most popular business structures. LLCs have the benefit of providing limited liability protection for the owners of the business, similar to a corporation. This means that the owner of the LLC, if properly operated, should not be personally liable for the debts and obligations of the business.
This limited liability protection is also available in S corporations and C corporations, but not in sole proprietorships or general partnerships.
An LLC can provide for “pass-through” tax treatment so that there is only one level of tax and it can avoid the double taxation found in C corporations. Only the owners of the LLC are taxed (unless a contrary tax election is made, and there is no tax at the LLC level. This is similar to the tax treatment for S corporations.
Because an LLC is formed by filing in accordance with the requirements of a state law, you have to decide what state you should organize in. Delaware is often chosen because of its well-developed state law. But in the vast majority of situations, you should organize the LLC in your home state to save on fees, filing obligations, and complexities.
For simple LLCs (such as when there will be a single owner), the easiest way to form an LLC is to use an online business formation service to do the work, such as CorpNet.com, MyCorporation.com, or ZenBusiness.com. For more complicated LLCs (with multiple owners or complicated ownership or management/voting rights), a lawyer experienced in LLCs may be more appropriate.
Here are some typical costs for forming and operating an LLC:
Here are the key LLC forms and documents:
There are multiple issues in picking an LLC name:
Picking a good name is not easy and obtaining the desired domain name you want will likely involve some meaningful cost if it is already owned by a third party. For more advice on this, see 10 Tips for Naming Your Startup Business.
The owners of an LLC are called “members” as opposed to the owners of a corporation who are called “stockholders” or “shareholders.” A single-owner LLC will contain one member and own 100% of the LLC interests.
Ownership in an LLC typically entitles the owners to a percentage of the LLC’s profits, losses, and cash distributions, and a right to vote on certain business decisions of the LLC. This is all set forth in the LLC’s Operating Agreement.
The LLC can be managed by one managing member, a group of members, an outside manager, or by all the members, as you set forth in the Operating Agreement.
An LLC does not have a Board of Directors, which is required for corporations.
The LLC Operating Agreement sets forth the owners’ financial, management, and other rights and responsibilities. Here are some key issues that should be addressed in the LLC Operating Agreement:
Disadvantages include:
As discussed in this article, LLCs may be appropriate for simple businesses involving one owner or a small number of owners. But in more complicated situations, a C corporation or S corporation may be more appropriate.
Related articles from AllBusiness.com:
Copyright © by Richard D. Harroch. All Rights Reserved.
Thanks to https://www.theworkathomewoman.com/businesses-start-no-money/comment-page-2/#comment-1255897
In reply to Paul.
Hi Paul,
Thanks for your comment!
I respectfully disagree. I know many people who have started writing without experience or training; myself included. A positive mindset is one of the biggest factors in your success. 😊 If you enjoy writing, jump in and start doing it. The more you write, the better you get.
Another writer who started without experience is Danny Margulies; he chronicles his success in this interview:
https://www.theworkathomewoman.com/make-money-freelancing/
Here is a huge list of paid writing gigs, and they pay more than $5 per hour:
https://www.theworkathomewoman.com/paid-writing-gigs/
Wishing you all the best on your journey!
Thanks to https://www.benchmarkone.com/blog/21-great-small-business-blogs/#comment-838
[…] This excerpt was taken from an article written by Jessica Lunk on benchmarkone.com […]
Thanks to https://www.goodfinancialcents.com/home-based-business-ideas-easy-to-start/#comment-9533526
I felt that this information pertaining to self-employment will be a valuable source for me. I was seeking general ideas of
what business would be most profiting for me and realistic. I am also interesting in using Amazon and eBay to distribute my products or services.
Thanks to https://www.benchmarkone.com/blog/21-great-small-business-blogs/#comment-838
[…] This excerpt was taken from an article written by Jessica Lunk on benchmarkone.com […]
Thanks to https://www.theworkathomewoman.com/businesses-start-no-money/comment-page-2/#comment-1255897
In reply to Paul.
Hi Paul,
Thanks for your comment!
I respectfully disagree. I know many people who have started writing without experience or training; myself included. A positive mindset is one of the biggest factors in your success. 😊 If you enjoy writing, jump in and start doing it. The more you write, the better you get.
Another writer who started without experience is Danny Margulies; he chronicles his success in this interview:
https://www.theworkathomewoman.com/make-money-freelancing/
Here is a huge list of paid writing gigs, and they pay more than $5 per hour:
https://www.theworkathomewoman.com/paid-writing-gigs/
Wishing you all the best on your journey!