After the last few months of rising unemployment, it might seem silly to be thinking about forming a limited liability company (LLC), let alone venturing on entrepreneurship. After all, starting something like this takes a considerable amount of money and isn’t always worth it, right? Well, that’s where you’re wrong! Starting an LLC now might sound like another headache you don’t need, but trust in the process. There are so many assets available to you that can make filing easier than you might imagine. Not to mention, most of these resources offer quick and affordable services to help you get a strategic start.
Starting an LLC: What does it mean?
Let's say your recently started side-hustle went viral on TikTok, or you're just looking to take the reigns of your financial status into your own hands. Starting an LLC is a great solution––and it provides a ton of benefits!
A Limited Liability Company or LLC is a type of business structure that essentially “combines elements of a partnership, sole proprietorship, and a corporation to ensure that the company owners are not personally liable for their company's debts or liabilities.” Simply said, having an LLC allows you to separate your personal assets (your home, car, personal bank accounts, etc) from your business assets and provides you with limited liability from whatever debts or obligations your business might take on. Creating an LLC for yourself can open doors to so many opportunities and can make a real difference when trying to legitimize any business. However, it might not be the right move for some people.
What are the benefits to forming an LLC?
Arguably, the most well-known benefits to forming an LLC are tax benefits like pass-through taxation and a 20% tax deduction on personal returns. This allows owners of pass-through businesses to deduct up to 20% of their net business income from their income taxes, reducing their effective income tax rate by 20%! There's no need to file a corporate tax return, either. LLC owners can report their share of profit and loss on their individual tax returns, avoiding double taxation. In this current climate where no job seems safe, having the ability to build your own financial future and apply for positions as an independent contractor might be the biggest draw of all.
Before you decide to form an LLC, you must determine what your long and short term goals are. For as many benefits as forming an LLC has, there are also drawbacks that should be taken into account. For example, there is very limited growth that an LLC can undergo. If your ultimate goal is to take your company or the business public, an LLC may not be right for you, as LLC’s cannot issue shares of stocks to be traded. Every state has different laws for forming an LLC, which can be slightly confusing if you’ve decided to form this on your own. Thankfully, there are resources out there to help you form an LLC quickly and easily.
What is BetterLegal? Is it worth the cost?
BetterLegal provides you with fast, high quality, affordable business formation services for LLCs and Corporations. Unlike its competitors, BetterLegal offers the lowest prices with no add-ons or upsells and with same-day filing. So you can expect your business documents to be delivered to you within two business days.
BetterLegal offers business formation services across all 50 states and covers both single and multi-membership LLCs. Filling out the membership form for your desired LLC is as easy and only takes around 10 minutes to complete. Creating your LLC name becomes a breeze with BetterLegal's free name search, so you can be sure your LLC is one of a kind. After the questionnaire is complete, payment is simple and straightforward.
BetterLegal’s filing fee is always a flat rate of $299 plus state filing fee. State fees can range as low as $40 in Kentucky or as high as $500 in Massachusetts. It's also important to note that when you file for an LLC, apart from the start-up fees, many LLCs are subject to annual or biannual fees which also vary from state to state.
If you want an LLC without the headache of legal jargon and gathering documents, this service is for you. BetterLegal is the easiest and most affordable site for business formation. Don’t put your future on hold––create your business today!
The Daily Dot may receive a payment in connection with purchases of products or services featured in this article. Click here to learn more.