How do I become an LLC?

From Linda Guarracino Barrington, NJ

Do you file for an EIN # before you
form an LLC?

From Allison Bradenton, Fl

I filed online, & it was extremely simple. In Fla-it's sunbiz.org. I was told always go with the .org. I think the state fee was about $130

From Don

I always find it good business practice to consult a lawyer—even if only initially assuming you don't necessarily utilize him throughout the entire process. May be a few bucks up front that you'd rather not spend, but could save you substantially should things go wrong or you realize there are better options available. Safe than sorry.

From Bobbie F. Tampa Florida

I think there are a few things I would consider. First, I always get an EIN number for taxes. Why? If I use my SSN could I at some point be thought of as operating an individual and not a corp, and therefore lose my Limited Liability?
Second, while filing the LLC is not hard, you do want to have an operations agreement. A single member LLC does not get the same protection in a charging order as a duel member LLC. I would always have a duel member LLC, even if the other party (could be a personal trust I would think) has only 1%. Specifically to address protection based on a charging order. Finally I would not want to operate a duel member LLC without an operations agreement, that allows for exit. If the person you are in an LLC goes crazy one night and runs off to Bulgaria, what can you do? Nothing unless you have something in your operations agreement that allows for a contingency plan. Additionally it should have a plan for mediation when things go completely south.
To me, operating the business is much easier than creating paper work and understanding the consequences of not having good paper work. I also understand upon the death of a member, it is not treated as a partnership would be treated, so you must also ad clauses in the operations agreement that addresses death of a partner or even just the incapacitation. Treat business as it is big, and it will be!

From Josh Allyn, Houston, TX

The state you live in should have a online filing system for filing a new business. I believe this is under the Secretary of State website. For Indiana I believe it is, http://www.in.gov/sos/business/corporations.html (copy and paste in your browser). It will costs you "X" amount of dollars to file for the LLC (more expensive than a sole properitor)and once you have filed you should receive proof of formation within a very short period of time (sometimes minutes) directly to your email. These online systems have made it very effecient to form a business if you know how to find the information (i.e. GOOGLE). Once you file you should be able to file for an EIN on the IRS website, which is, http://www.irs.gov/businesses/small/article/0,,id=102767,00.html .

I hope this helps you. By the way, you will avoid the fees from the services of these "middlemen" who act like they are doing you a favor by filing it for you and charging you $$$$ to do something that is so easy. What it basically comes down to is, if you do not know, the chances of getting take advantage of are almost 100% positive…INFORMATION IS PRICELESS…ALWAYS GO STRAIGHT TO THE SOURCE AND FIND OUT FOR YOUSELF!

BEST OF LUCK!

From Phil Redmond, WA

Go to nolo.com and get their book, "Working for Yourself: Law & Taxes for Independent Contractors, Freelancers & Consultants". I got a copy from my local libary and it had everything I needed to know and then some.

I created my LLC (in WA) using our state's Secretary of State's web page. I filled in some fields and paid the fee with my credit card. That's it. The paperwork showed up in a couple weeks and I was done. But before you do this, read the above-mentioned book and know all the ins and outs of LLCs.

From Mark. Alpharetta GA

You don't need a tax id if creating a single owner LLC. Just use your personal SSN. Anyone who cannot fill out the paperwork themselves needed to form an LLC (online at state website or for main-in to state) is not smart enough to have their own company.

From Jason G., Zebulon, NC

Also, a trip to the county court house will uncover quite a bit of information. When my wife formed her LLC, it was only a matter of obtaining the Employer ID (from the IRS) and filing her business name request with the state and local authorities. I would try the tax division of your local government. You will find extremely helpful people there. A little legwork will save you money and get the setup done right the first time. I would shy away from a one size fits all plan as each local government may have a need for a certain document that the neighboring county does not.