How To Start A LLC For Under $500
Are you thinking about starting a LLC, but don't want to spend a lot of money doing it? Good news - you don't have to! It is possible to start a LLC for under $500, as long as you are willing to do a little bit of legwork yourself.
Here's how to get started:
Choose your business structure.
The first step in starting a LLC is to choose your business structure. There are four main business structures: sole proprietorship, partnership, limited liability company (LLC), and corporation. Each has its own advantages and disadvantages, so you'll need to decide which one is right for your business.
Choose a name for your LLC.
Once youâ- e decided on your business structure, it's time to choose a name for your LLC. The name you choose must be unique and not already in use by another business. It must also end with the words "Limited Liability Company" or "vLLC."
File your Articles of Incorporation.
The next step is to file your Articles of Incorporation with your state's Secretary of State. This document officially creates your LLC and must include your LLC- s name, address, and the names of its owners (known as "members").
Create an Operating Agreement.
An Operating Agreement is a document that outlines the ownership and management structure of your LLC. This is not required in all states, but it's a good idea to create one anyway.
Get an Employer Identification Number (EIN).
An EIN is a nine-digit number that is used to identify your business for tax purposes. You can apply for an EIN online, by fax, or by mail.
Open a business bank account.
Once you have your EIN, you can open a business bank account in your LLCâ's name. This will make it easier to keep track of your business's finances.
Apply for any necessary licenses and permits.
Depending on the type of business you're running, you may need to apply for certain licenses and permits. For example, if you're selling food or alcohol, you'll need the appropriate permits from your state or local government.
Starting a LLC doesn't have to be expensive. By following these steps, you can start your own LLC for less than $500.