February 23, 2022

Episode 120: Filing An LLC Registration Yourself And Things To Know

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If you're ready to file an LLC yourself and take the DIY approach, I want you to know as much as possible to help you prepare to file.

A Limited Liability Company (or an LLC), provides very similar protections as a corporation. But LLCs are easier, and much cheaper to form and run. It a way for business owners to protect themselves from personal liability. It separates the personal liability from the business liability.

Episode Highlights

An in-depth look on how to really start filing for your LLC, and why it's important to familiarize yourself with your home state's filing process.
What is a name reservation, and why it's very different from a trademark registration which is a different form of protection.
What is an effective date, and what to choose if you want to be an LLC right away.
A breakdown of what is registered agent, and what you could do if you're not comfortable leaving your home address listed.
Why different states may have larger filing fees, but I don't want this to deter you from filing. Because the benefits of forming an LLC outweigh the filing fee.

Worth Noting

"You don't want your business assets and liabilities co-mingled with your personal assets. We've worked hard to create a savings account, 401ks, build a home for ourselves, and we don't want those to be interrupted or be at risk with the business that we're creating. Which is why an LLC essentially creates this entire bubble around your business."
- Paige on why forming an LLC and keeping your assets separate is important.

"You can't have a PO box here where your LLC receives official mail. So oftentimes business owners just choose to simply put themselves as registered agents and then they list their home physical address. Remember, this is public information, your LLC registration lives in a public area that people can search and access. So if you're not comfortable providing your home address for privacy reasons, you're going to need to find another registered agent in your home. And that is really easy to do."
- Paige on what is registered agent.

"Keep in mind that being an LLC owner has benefits, including being able to write off many, many business expenses. So keeping your funds separate allows you to keep track of expenses easier, which will ultimately help you write off more during tax season. Your accountant will thank you for this. You will thank yourself for this at the end of the year, when you have this business bank account all set up. Not only is it absolutely mandatory and necessary, legally speaking to keep your LLC actually an LLC, but it's also great for keeping track of your finance."
- Paige on why you need a business bank account.

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