The unknowns of the national economic landscape can present challenges for businesses, which is why many entrepreneurs take a pause to consider the best approach when starting a business. While it is ideal to enter the market under favorable conditions, it is important to be prepared for shifts and possible downfalls.
The rapidly shifting economy this year is already presenting means that new business owners should take the time to consider ways to protect themselves as well as their business. If your goal is to shield your personal assets from business liabilities and potential mishaps, forming an LLC might be in your best interest.
Steps to take
There are some basic steps to consider when starting an LLC. When an LLC is formed, like every other business, you will need to complete the articles for organization. This is the document that provides the necessary details concerning your business. This includes the name, address, registered agents and management structure. The purpose of this document is to inform the business regulation authority of your state the basic information of your LLC.
Depending on the type of business, licenses and permits might be necessary. If your business that requires professional licenses or operates in a regulated industry, such as healthcare, real estate, public broadcasting, food and beverage or insurance, it will be necessary to acquire and maintain the necessary licenses. Licenses and permits that should be considered when starting an LLC include a general business license, sales tax license, professional license, health permit, zoning permit and sign permit.
Fees and costs
Certain fees are unavoidable for an LLC. When forming an LLC, there is a filing fee, which is set by the state. There are also costs associated with any licenses and permits determined to be necessary. These can range between $15-$200. Keep in mind that these will need to be renewed periodically.
Other costs and fees to consider when starting an LLC include publishing fees, name reservation fees, DBA fees, expedited filing fees, registered agent fees, operating agreement filing fees, annual report fees and costs associated with any legal or tax advice needed for your business.
Starting an LLC is an exciting step to take; however, it is something that needs to be planned and budgeted for. If you are unsure what steps to take or have questions, a legal professional can help.