Are you interested in learning how to start an LLC for FREE?  I’ve written extensively on how to start your own LLC.  I’ve helped tens of thousands of folks start an LLC for cheap.  Now I’ve found a way that you can start an LLC for FREE.  That’s right, you can now start an LLC for FREE!

Why pay an attorney or online service hundreds of dollars when you can literally start an LLC for FREE using my special link below.  This article will walk you through step by step how to start your own LLC for FREE.  We’ve even made a video on How to Start an LLC for FREE to make it even easier on you.  So, let’s get started!

Why Start an LLC?

Maybe you are on the fence if it is worth your time to start and setup an LLC.  If that’s you, check out this quick article which explains the benefits of starting an LLC: Why You Should Start an LLC.

Let’s Get Started

If you are ready to start an LLC for FREE, click this link to follow along: Start an LLC for FREE with IncFile .  The next portion of this article will walk you through how to setup an LLC for FREE.

I discuss each option of the IncFile website as you go through to register your LLC.  IncFile does offer some upgrade options which you may find interesting or helpful.  Each person will need to decide if they are willing to pay a bit for these “extras”.  Some will want to just go bare bones so they can get their LLC for free.

Remember, click here on this IncFile link to get started with Starting Your LLC.

1) Start an LLC – Which State?

The first step when starting your LLC is to decide in which state you’d like to create your LLC.  There are pros and cons to starting an LLC in your own home state.  For more info on this to save you money, check out this article: Can I Form an LLC in Another State?

The one trick to saving money when starting your LLC is that each state has a different LLC filing fee.  This state LLC filing fee is unavoidable, and the only required expense you’ll have to undertake.  If you are running an online business, it pays to pick a state which has lower filing fees.

2) Select Your LLC Base Package

If you’re following along with our IncFile example to start and LLC for FREE, then you’ll need to pick a base “package.”  The Gold and Platinum packages have extra stuff you can consider, but these extra things are not required.  Many of the extra things they charge for you can do yourself pretty simply.  It is just a convenience factor you are paying for.  Some folks choose these just to make it easier, but that comes at a cost.

To start an LLC for FREE, you need to pick the Silver base package.  This does not have any of the frills, and is just bare bones.

3) LLC State Filing Time

If you are not in a huge rush, pick the free option.  This free option takes 5 days instead of the rush 1 day.  This will save you $50 if you are patient :-).

4) Starting an LLC – Company Information

In this section, fill out the name of the LLC you would like and just select “LLC” for the “Select Designator” field.

Pick the type of industry your LLC will operate in and then select the number of members.

Check out this quick video we created on potential risks of a creating a single member LLC.  This is something you should consider when starting an LLC if you have an easy option to add a second member (you have a business partner or are married).

Next fill out the business purpose – this can be very generic :-).

5) Should I Use My Own Address When Starting an LLC?

The next step is to decide what address to use for your LLC.  Many of us will be just fine using our home address.  However, some folks which are concerned about privacy may not want their home address published for the world to see.  Anyone can look up your LLC name and find the business address.

IncFile offers a service to “mask” your address by creating a “Professional Business Address” for ~$29 a month.  If you are interesting in saving money when starting your LLC, then you will NOT want to pay $360 a year for this service.

I have used my own address for my LLC for years and have never had any issues.  I suggest you just use your home address to save money, but the choice is yours.

6) Should I get the Premium Package When Starting my LLC?

If you want to start your LLC for free, then you obviously cannot pick this $100+ premium package :-).  This premium package includes:

1. EIN Number
2. Operating Agreement
3. Banking Resolution
4. Express Shipping
5. Business Contract Templates

While these are all helpful, you can get each one of these for free in just a couple of minutes:

• EIN Number – this is like a social security number for your business.  It links your business income to you as a person so the IRS can ensure you are paying your business taxes properly.  Save yourself money and get your EIN Number yourself in about five minutes here: IRS EIN Number
• Operating Agreement – this is recommended if you have more than one member in your LLC.  This is basically just “rules” that each member needs to follow.  You can easily google this, print one off, and get everyone to sign.
• Banking Resolution – this is very similar to the Operating Agreement.  This outlines who can withdraw money from the bank.  Same thing – google it, print it out, and get all members to sign.
• Express Shipping – have the patience to wait just a couple of days :-).
• Business Contract Templates – Are you noticing a theme yet?  You can just google for any type of contract you are looking for, print it out, and voila!  $100+ saved!

7) Starting an LLC – Defining the Members

As you’re following along with our IncFile example of how to start an LLC for free, the next step is filling out the member info.  This is very self-explanatory.  Just fill out each member of your new LLC and define them as an individual.  You can also have a company or another LLC be a member of your new LLC, but this is a bit beyond the scope of this article :-).

In this example, I make myself as the primary member and own 90% of the company.  I also setup my wife as a member and make her a 10% owner.

8) Should I Sign Up as a Registered Agent or Use a Service?

The net thing to decide is if you will be your own Registered Agent or if you will use a Registered Agent Service.

Did you create your LLC in the same state in which you live?  If so, you can be your own registered agent and save yourself $100+ a year!  Just fill out your name and address, and you’re good to go :-).

If you are creating an LLC in a state in which you do NOT live (to save yourself money on the filing fee or annual fee), then you are REQUIRED to setup a Registered Agent Service.  All states require someone PHYSICALLY in the state in which the LLC is created that can receive mail during normal business hours.

If you are going the Registered Agent Service route, then I highly recommend Northwest Registered Agents.  You can also use the IncFile Registered Agents if you find that easier.  The choice is yours.

We also created a quick video which helps answer the question: Can I Be My Own Registered Agent? if you have more questions on that.

9) How to Get Your Own EIN Number for Free

IncFile is now again asking if you’d like them to setup an EIN Number for your for the price of $70.  Since we are starting an LLC for FREE, the obvious answer is we want to decline this.

You can register for an EIN Number yourself with the IRS in literally five minutes here: IRS EIN Number .  We will leave it up to you if $70 is worth five minutes of your time :-).

10) Setup Small Business Banking

Here IncFile will see if you are interested in setting up small business banking through one of their partners.  These are usually big banks like Bank of America and the like.  We here at MoneyAhoy.com recommend you use a local credit union for your small business banking needs.  The choice is yours – this one doesn’t cost any extra if you’d like one of their partners to contact you.

11) Setting Up an LLC – Method of LLC Document Delivery

As one of the final steps, IncFile will ask you if you would like the LLC documents emailed to you or if you’d like to pay $25 to have them FedEx’ed to you.  Since we are trying to start an LLC for free, we will go the cheap email route.  Some folks like to have a physical document in their hands and are willing to pay a bit just to have that.  Again, the choice is yours :-).

12) LLC Tax Strategy

This option is free if you’re interested in being contacted by someone to help you discuss everything.  If you are pretty savvy with taxes, there isn’t much need to ask for help.  But it cannot hurt to check “Yes” if you’d like to have someone reach out to you.

13) Business Licenses and Permits

Here IncFile can help you setup your business license as well as apply for any other type of licenses.  The cost of this is $99.  This is a great option if you’re looking to keep things simple for yourself.

If you’d like to keep this cheap (i.e. free), then head over to your local county or city website.  They will tell you everything you need to know about business licenses and other types of licenses which are required.

Typically if you are running an online-only business, you don’t need any of these!

14) Order Review

This one is easy – just verify all your information is correct as you’re trying to start an LLC for FREE!

15) Payment Information

Here simply enter your credit/debit card information and you’re all set.  Click “complete and pay” and you’re on your way to starting you very own business!!!

Video For How to Start an LLC for Free!

If you hate reading, or you’re just a “show me” type of person, check out this quick video which walks you through all of these steps to setting up your own LLC for free:

Final Thoughts

We hope you enjoyed this detailed post on How to Start an LLC for Free!  If you have any questions or need any help, please don’t hesitate to reach out to us.  We will be quick to help with whatever info you need to start your LLC with IncFile today.

The post How to Start an LLC for FREE! appeared first on MoneyAhoy.

For more saving money, making money, and investment ideas go to www.MoneyAhoy.com

Start and Setup an LLC on-line in Less than 6 Minutes

Interested in how you can start and setup an LLC on-line in less than 6 minutes?  This guide will show you how to start your own business online quickly, easily, and without breaking the bank!

Setting up an LLC for your business is so easy, quick, and cheap; you should not let this be a barrier to getting things started for the business you have been dreaming of starting.

Check out the YouTube video below where I guide you through the entire process of filling out the required information step-by-step to form an LLC at LegalZoom.com!

Last Updated: October 23, 2020

If You Missed the First Part in This Creating an LLC Series

If you are interested in finding out more of what an Limited Liability Company (LLC) is in comparison to other types of business structures or why it is a great structure if you are looking to start your own small business, check out part one of the starting your own business series here: Part 1 – How to Start an Setup an LLC.

A Couple of Points on How to Start and Setup an LLC on-line with LegalZoom.com

As you watch the video below on how to start your own business online, you will see the following choices for how to setup your LLC mentioned.  For those of us that are interested in starting our own LLC and saving some money in the process, I put more specific details below on how you can start an LLC and save money.  Note – LegalZoom will try to up-sell you a lot of extra stuff that you probably do not need for starting your new business:

• Would you like us to help your LLC apply for a federal tax identification number? ($79) – No, no, no!!!  This takes all of 30 seconds through the IRS website, no need to spend eighty dollars on it.  Here is the IRS link to get your own federal tax ID.
• Registered Agent? ($159/year) – You can be your own registered agent and have everything sent to your LLC’s main address.  So, pick “I will name the registered agent”.  The only real reason for this is if you are running a business out of your home and you would like to keep your address semi-private.  Other examples I’ve seen used is if the Sheriff needs to serve you papers, you don’t want them coming to your business and upsetting customers.  It is a waste of money for my type of business, but you can decide for yourself.  If you still have a concern, another idea is to setup a UPS box and have everything sent there.  Finally, if you really must have someone else act as a registered agent, you can get a service for ~$40/year.  I have used Registered Agents Inc. for the past two years and can recommend them.
• State Compliance Calendar? ($69/year) – If you will elect to be taxed like a normal LLC (pass-through taxation), then this is completely unnecessary.  There is not much paperwork to keep up with at all!  You will only need to pay one bill a year – the LLC registration fee.  Also, my experience has been that the city/count/state will notify you if they haven’t received paperwork, and if you respond in a timely fashion there is no financial penalty.  If you do get the payment in late, you may be suffering a $10 or $20 penalty  So you could make a couple mistakes and still save money.
• Ownership – If you will have more than one member in your LLC, percentage based is an easier selection here.  It can be important for the LLC to have at least two members if you get sued personally (not the business).  If you are personally sued, lawyers can try to prove that you were operating the business as yourself vs. the company and your limited liability protection can be stripped away.  This is called piercing the corporate veil.  This would mean that your LLC could be treated like a personal asset.  By having a second member, you can show that this would cause financial damage to the other party.  This could deter a judge from liquidating the LLC to come up with money.  Having more than one member has prevented this type of thing from occurring in the past!  It is a little bit more work when tax time comes, but worth it in my opinion since I’m married and can identify my wife as the second member.  If you are married and normally file your taxes as “Married Filing Jointly”, then naming you spouse as a 10% owner is usually a good and easy option here.
• Officers – Go ahead and set yourself up as the President & CEO.  It looks great on the business cards!!  Plus as a bonus you get bragging rights.
• Transfer of Ownership – This one is completely up to you.  The choices go from no restrictions to heavy restrictions.  I would elect for the least restrictive choice for your new business, but it depends on your other members and what your business will be doing.  If you plan to start and setup an LLC with folks that you do not know very well, you may want to go a more restrictive route.  If you think that you may sell your business or cash out your portion of the business down the road, then you really need to think hard on this one.  I will leave this one up to you to consider as you start and setup your LLC.
• Tax Matters Member – Go ahead and identify yourself as the Tax Matters Member unless one of your other members of the LLC will be handling the taxes.
• Business Activity – Pretty straightforward, just pick the category closest to what you’ll be doing as your MAIN business activity.
• Business Advantage ($96/year) – Not sure who would buy this; please decline it.  You don’t need it!  A quick google search will provide you with what you will need!  I have linked a couple helpful business forms for free right here:
  • Non-Disclosure Agreement (NDA)
  • Basic Business Invoice (how you bill customers and get paid!)
  • General Contract Agreements
  • More free business forms and templates
  • Basic Rental Agreement
• State Tax Form ($49) – This is a quick form you can fill out if you are going to be doing retail transactions.  You can do this for free in about 5 minutes, just do a google search for your state form.  No need to pay!
• Business Banking Account – I suggest you don’t bother with this here, just more spam…  Head down to your local bank branch (preferably a local Credit Union) and setup a business account in person.  It will take you about an hour, and it will make you feel like a real VIP once you have it setup.
• Choose Your Package ($350) – Please, please, please just pick Economy.  The other packages give you a lot of extra stuff that will be of limited to no use to you!

There you go!  If you followed all of my suggestions above, you will save yourself up to $802 when setting up your LLC online!!!  If you are ready to get started, then start the video below and click the little LegalZoom.com icon now to create your own LLC online!

Updated Video on How to Start a LLC for Cheap!

Here is the updated video for 2018 on how to start a LLC for Cheap using LegalZoom.  I am leaving the older video below up as it is still very informative.  LegalZoom has made the whole process even easier to create a LLC, so this video should really help you through the process.  What are you waiting for?  Start a LLC now with LegalZoom!  If you have any questions on the video, starting an LLC, setting up an LLC, then please ask in the comment section below or in the video comments on YouTube.   If you follow along with all of my suggestions, then you should be able to save yourself over $800 when you start a LLC!

Video on How to Start and Setup an LLC On-Line in Less Than 6 Minutes

I put together this video on how to start and setup an LLC on-line in just a couple of minutes back several years ago.  LegalZoom has updated their process to make it even easier to start a LLC.  The video right up above represents the current setup LegalZoom walks you through.  If you have any questions on the video, starting an LLC, setting up an LLC, then please ask in the comment section below or in the video comments on YouTube.  It really is pretty simple if you follow the steps I outlined above and during the video.  If you follow the steps, you should be able to start your LLC for $200 – $250, it all depends on your specific state fees.

What’s Next for Starting and Setting Up your LLC?

In the third and final post of this series of how to Start and Setup an LLC on-line, I will give you a LLC Startup checklist that I developed to make sure you get all of the normal forms and such taken care of without spending hundreds with LegalZoom.  So, CHECK OUT PART-3 HERE!!

Starting and running your LLC really is pretty easy.  I have been running my own LLC for over three years, and let me tell you the LLC part of things is the easiest part of running a business  You will be much more focused on developing your product/service and serving customers.  If you are on the fence about starting and setting up your LLC, just go for it!  The difference between successful and ordinary people is that successful people are willing to take a risk and jump in even when they’re not 100% comfortable.

For more information on starting your own business, creating an LLC/inc, and running your business, check out these articles:

• Making Money – How to Start and Setup an LLC
• How to Start and Setup an LLC – Checklist
• How Much Does Starting an Online Business Cost?
• How Small Businesses Can Save Money
• Looking to Startup a Business – Try Something Different!
• Start and Setup a Corporation (INC) on-line in Less than 6 Minutes!
• Tips for Starting a Successful Small Business
• How To Restart a Failed Business
• How to Setup a Blog for Fun or Profit
• What You Need to Know Before Starting a Small Business
• What is Flex Space – and Does Your Business Need It?
• 4 Tips to Streamline your Business and Generate More Capital
• Can an Email Marketing Campaign For Your Business Save Money?
• Top 3 Reasons You Should Form an LLC For Your Business
• Can I Form an LLC in Another State?
• Top 3 Ideas to Jump Start Your Business
• 3 Pros of Using GovDoc to Start Your Business
• Is a Sole Proprietorship the Right Legal Structure for Your Small Business?
• How to Start an LLC for FREE!

Now It’s Time to Start Your Website

Now that you’ve created your LLC, it’s time to create your website.  That’s right, every business needs its own website!  Whether you started your business to blog (like me) or you are running some other type of business, you will need a website.

The good news is that it is very easy to setup and online presence with a WordPress blog from Bluehost.  It is very easy to use WordPress as both a blogging tool or to help you setup a complete website for your new LLC.  I have created a whole simple tutorial for you so that you can start your own blog using WordPress with Bluehost and have a website up and running in less than 20 minutes!  Have I got your interest now?

For your business to be successful, customers (or readers) need to be able to find you.  We both know you are busy (and maybe your startup funds are small), but for just $3.49 a month you can have a website for your business up and running.  I show you how to setup a WordPress Blog using Bluehost in less than 6 minutes in this link here.  That’s right – in less than 6 minutes you can have your own website!  No more excuses :-)!

Make the commitment to yourself and start a WordPress Blog using Bluehost for your new business now!  You will be glad you did.

The post Start and Setup an LLC on-line in Less than 6 Minutes! appeared first on MoneyAhoy.

For more saving money, making money, and investment ideas go to www.MoneyAhoy.com

Checklist to help get you started with starting and setting up your LLC

You’ve made it to the final part of our series on how to start and setup an LLC!

If you missed Part-1 of the series, you can find it here: why an LLC is the best business to setup.  If you would like to go back and review Part-2 of the series, you can find it here: how to start and setup an LLC.

This post will contain a checklist of items you should make sure you cover when starting and setting up your LLC.  I’ve also included a downloadable checklist (in Word Document format) that you can download and print-off to help you get started quickly.  This will help you ensure you hit all the major bases when setting up your LLC.

Read on to get started!

How to Start an Setup and LLC – Downloadable Checklist

• Download the New LLC Checklist here!!   
• If you have not setup your LLC yet, then watch my video on how to start and setup and LLC and click the LegalZoom.com box below!

How to Start and Setup an LLC – Checklist

Naming Plans:

List top-3 names you plan to use here.  Make sure a suitable website to go along with the name is available (check www.1and1.com for availability).

Tax Plans:

Select one of the following tax types.  See the IRS website here for more info.  You will only need to do something (fill out form 8832) if you elect to be taxed as a corporation, otherwise nothing is required.

• • • Part of your tax return
    • Partnership
    • Corporation (Form 8832 will be required, get it here)

Early Expenses Planning (First Year):

Use this section to help you plan on how much money you will need to fund your business with.

TOTAL = $

LLC Member Plans:

List out members, % ownership, and initial funding for each member here.

Other Potential Items to Address:

• • • Setup delivery box at UPS Store
    • Obtain Employer Identification Number.  Get it from the IRS website here.
    • Obtain a state tax identification number.  Use this Google search, then add your state name to the search to get the proper form.
    • Obtain business license / register with County/City Commissioner of Revenue if applicable.
    • Register fictitious name with County/City Circuit Court (if applicable)
    • Register name and trademark if interested (http://www.uspto.gov/)
    • Select bank and fund account
      • Setup business checking account
      • Setup business credit card
    • Setup general ledger for accounting
    • Setup Google AdWords account for business website (if marketing on-line)
    • Register business website address, deploy website (consider BlueHost.com to host your website.  They are awesome!)
    • Create Facebook account for business
    • Create Twitter account for business
    • Setup paper filing system for taxes, expenses, disbursements, invoices, payments, corporate information, etc.
    • Create business logo
    • Print business cards
    • Create simple two-page business plan (who, what, when, where, why, how)

If Non-Home Based:

• • • Negotiate lease agreement for office space
    • Setup phone number
    • Setup electricity
    • Setup water
    • Setup natural gas
    • Setup credit card payments
    • Setup internet access

How to Start and Setup an LLC – Checklist – Summary

In this series on how to start and setup an LLC, we’ve been through a lot.  I’ve given you a lot of tools and knowledge that you can put to use to make more money.  To summarize, we covered:

Part-1 (Making Money – How to Start and Setup an LLC)

• • • What a Limited Liability Company (LLC) is
    • Why it is important to have limited liability protection if you are running a business or collecting/receiving money
    • Pros and cons of an LLC versus other types of business organizations

Part-2 (Start and Setup an LLC on-line in Less than 6 Minutes!)

• • • How you can quickly and easily start and setup an LLC in less than 6-minutes with LegalZoom.com
    • How you can save $802 when forming your LLC by following my suggestions on reducing the forms that LegalZoom.com will file for you

Part-3 (This Post)

• • • A word document checklist “New LLC Checklist”, which will help guide you through all the things you need to take care of to properly start and setup your LLC.

Let me know if you have any questions, comments, or concerns in the comments section below.  I hope you enjoyed this series on how to start and setup an LLC, and I hope you can put it to use to start making money for yourself today!!!

The post How to Start and Setup an LLC – Checklist appeared first on MoneyAhoy.

For more saving money, making money, and investment ideas go to www.MoneyAhoy.com

Setting Up Your Own LLC is Easy!

Starting and setting up your own LLC for your new or existing business is easy!  This “how to” article will cover some basics on what an LLC is.  You will also learn how to start and setup an LLC on you own in less than 10 6 minutes!

So, let’s get started…

Do you have a hobby that you think can generate some additional side income?  Are you already running your own business and you’re looking for additional legal protection?  Maybe you’ve got a great idea in your head for starting a business and you’re ready to take it to the next level.  A Limited Liability Company (LLC) could be what you need to get your business started with the protection that you need.

Why Should You Start and Setup an LLC?

There are a couple main reasons why setting up an LLC can be a great idea for you:

• Protection of Assets – the LLC provides member’s limited liability protection of their personal assets (if company gets sued or goes bankrupt).
• Pass-through taxation – income or losses get passed through to member’s personal tax returns.
• Credibility – If you are just getting your business off-the-ground, forming an LLC can go a long way to gain credibility.
• Ease of Operation – LLCs are easier to setup and run than a S corporation of C corporation.

Quick story:

My Mother-In-Law owns a thrift shop, and she runs this as a sole proprietorship.  After being in business a couple of months, a frequenting customer “accidentally tripped” down a single step and twisted her ankle.  Long story short, she obtained the services of a lawyer and is trying to gain compensation for her medical bills and pain/suffering.  Does it sound like we have a potential problem here?!?  This lady has the ability to sue my Mother-In-Law for every cent of her personal assets!  Spending less than 10 6 minutes to start and setup an LLC would protect her from this sort of legal nightmare!

What are the Pros/Cons of Starting and Setting Up an LLC vs. a Corporation or Sole Proprietorship?

Check out the following table for a comparison of LLCs to other business structures and decide for yourself.

Is Starting and Setting Up an LLC Right for You?

I used to own my own corporation, and it was both a major headache and distraction from running the business.  I choose to spend countless hours to personally fill out all the necessary corporation paperwork.  This was all to save money by avoiding the services of a CPA.  For me, forming an LLC got rid of the paperwork headache and allowed me to focus on the business.  It was definitely the way to go!

What I like about LLCs is that they are like a “corporation-lite”.  You get a lot of the same legal protection, but you also get additional ease of operation by not having to fill out several tax forms monthly, quarterly, annually, etc.  Because I am trying to start my business on a small budget, an LLC was the right choice for me to avoid paying for an accountant to keep track of everything.

The potential downside is that you MAY incur higher tax with an LLC versus a corporation.  As your company begins to turn a profit, your LLC can elect to be taxed as a S-Corp or C-Corp to take advantage of this if this is a major concern.  This will help you to reduce taxes without incurring a lot of additional paperwork headache that comes with running a corporation.

 Next Steps

So, if you are interested and ready to start and setup an LLC, you can do this on-line in less than 10 6 minutes!

I used LegalZoom.com to create my own LLC (Chamberlain Global, LLC).  It was fast, easy, and inexpensive.  The whole setup process went off without any hitches, and I received my new LLC packet in about three weeks.  I highly recommend using LegalZoom.com as they are fast, professional, and easy!!  Note: these are affiliate links, so if you do decide to go with LegalZoom to start and setup your LLC, then thanks for the referral – it does not cost you any extra and I receive a small referral fee.
In the next post on LLC formation, I’ll create a video that walks you through the entire process of starting and setting up an LLC from scratch to show you just how easy it is.  There are several options when setting up an LLC all the on-line websites will try to sell you that you don’t really need, so CHECK OUT PART-2 HERE!!

The post Making Money – How to Start and Setup an LLC appeared first on MoneyAhoy.

For more saving money, making money, and investment ideas go to www.MoneyAhoy.com