Originally Posted On: https://maydaymarketing.agency/start-business-benefits-llc/
Thinking about starting your own business this year? First, congrats!, and second, welcome to the club. Starting a business is super exciting, and at the same time, kind of scary. There’s a lot to it right? Websites, domains, customers, marketing, the money side of things, and of course, the best type of business structure to get…
It can get crazy! But hopefully I can help you out with a few tips. In this blog post I want to talk about LLCs and why they’re the greatest invention ever, and give you a few steps you can follow to kickstart your business owner journey.
What Is An LLC
A Limited Liability Company (LLC) is a unique type of business entity that separates personal assets from the actual business. Which for us means that our personal belongings are completely protected and not included as part of any business obligations (AKA, liabilities). So, if something goes wrong and for some reason creditors are coming after the business, they cannot come after your personal stuff, you know, cars, house, bank accounts, things like that.
The concept of an LLC revolves around the blending of characteristics from a corporation and a partnership or sole proprietorship. It takes the limited liability features of a corporation and combines them with the tax advantages and operational flexibility of a partnership. Essentially, it offers the best of both worlds, making it a popular choice for many business owners. Oh, and by the way, the individual or persons that own the LLC are called members.
Why is an LLC a Good Choice for Your Business
With an LLC, you get the flexibility to choose how you want the business to be taxed. Single-member LLCs are often taxed as sole proprietorships, with profits only being taxed once. Multiple-member LLCs are generally taxed as partnerships. However, both single-member and multiple-member LLCs can choose to be taxed as corporations.
You can form an LLC in any state, even if you’re not conducting business there. However, most entrepreneurs choose to form an LLC in their home state or the state where they plan to do most of their business.
LLCs offer a significant amount of flexibility in terms of management and ownership. There are no restrictions on the number of members an LLC can have, and members could be individuals, other LLCs, trusts, or corporations. Additionally, the members of an LLC can manage the business, or they can appoint a management group to handle the operations.
LLCs require fewer recordkeeping practices and have fewer restrictions than S-Corporations or C-Corporations. They’re not required to hold annual meetings or keep extensive records like corporations.
Ownership in an LLC is typically harder to transfer than in a corporation. Unless all members agree, you can’t sell an LLC’s ownership interest to third parties.
So, what do we have? Flexible taxing structure, protection for your personal assets, and complete control of operations? Sign me up!
Comparing LLCs to Other Business Structures
LLCs vs. Sole Proprietorships: A sole proprietorship is the simplest form of business entity. It’s easy to start and gives the owner complete control of the business. However, unlike an LLC, a sole proprietorship doesn’t provide any personal liability protection. This means the owner can be held personally liable for business debts.
LLCs vs. Partnerships: A partnership is a business owned by two or more people who share profits and losses. Like an LLC, a partnership allows pass-through taxation. However, partners can be held personally liable for business debts, and this liability is unlimited.
LLCs vs. Corporations: Corporations are more complex than LLCs. They provide personal liability protection but are subject to double taxation – once at the corporate level and again when dividends are distributed to shareholders. Corporations also require more record-keeping and reporting than LLCs.
How to Start Your Own Business & Register Your LLC
Look, if you google something like “starting a business in 2024”, you’ll get a giant list of BS. Everybody is talking about doing market research, analyzing and copying your competitors, and knowing every single detail about your prospect… From their shoe size all the way to their annual income… I mean, some of these blog posts are ridiculous. Don’t get me wrong, I’m not saying that doing these things isn’t important, and having that type of data isn’t great, but realistically speaking, if you’re doing remodeling work, you have a customer base, or at least have done the work for yourself, and you intend to make your business official, you don’t need these things.
My intent with this section is to give you a step-by-step breakdown of how I launch every project, and to make this section meaningful instead of giving you the same BS everyone is pushing out there. Keep in mind that I’m guiding you through the starting point of your business journey, this does not include marketing (which is where analysis of data and competitors comes in).
Step 01 : The name
I know, it seems obvious, but it’s important that you pick one and find out if that name can be used for a website, and if it can be registered as an LLC (or whatever business structure you decide to go with).
Step 02 : Buy Your Domain
A domain is the name of your website. So my domain is maydaymarketing.agency. Your domain will be the name of your business.com. But you buy these names using something called a domain registrar. I personally use domains.squarespace.com. They are very affordable and provide free privacy protection. You can do others, but this is the best. You want to go to that website and do a search for the domain you want. If they have it, and you’re absolutely serious about the business, go ahead and add it to your cart and hold it there for now.
Step 03 : Check Business Name
One of the things you’ll have to do if registering an LLC is to make sure the name you want to use is available. Each LLC has to have a unique name and if someone else is using it in your state, you won’t be able to use it. The Good news is that if your domain was available chances are that your LLC will be as well. You’re going to go to Google and search for something like “LLC registration in [your state]”. Typically, the state website is the first result after all ads. Once you find that state website, take a read and it should tell you where to go to do a name search. Visit the place they’re indicating and search for the name you want to use. If no results come up that means that you can use the name. If results do come up, that means you will need to use a different name because someone is already using the one you want.
Step 04 : Registering Your LLC
So, now you know for a fact that both: the domain and the LLC are available. It’s time to commit. Go ahead and buy the domain at Squarespace, and fill out all necessary paperwork in your state to register your LLC. Note that you will probably need to also get an Employer Identifier Number (EIN), and most likely a tax ID for the state as well. I would contact an accountant to do this for you, or your tax professional.
Step 05 : Start Your Branding
While you wait for the state to review and approve your LLC, you can start the branding process, and no, it’s nothing crazy. You’ll need to get a super nice logo for your business, and maybe a few covers for your social media pages. This is important, so make sure you give it all your efforts, or even better, pay a professional to do it for you.
Step 06 : Get a Website
Start thinking about the services you’ll be offering and make a list so you can get the proper website (And no, getting a website is not optional). Your site doesn’t need to be anything complex, but it should look professional and appealing. You don’t want to project scam vibes do you? So if you can, pay a professional to do it for you.
Step 07 : Build Your Social Pages
Once your website project is underway, you can take that time to create your social pages. Get a Facebook page (you’ll need to do that from within your own Facebook Profile). Get an Instagram page, and get a LinkedIn page, and potentially a Reddit page. There are a lot of platforms out there, but you don’t want to try to be on all of them, you should focus on mastering one first and once you have a nice system going, move on to the next. Also, if you’ll be using videos, you can get a YouTube account as well.
Step 08 : Get on The Map
Go ahead and go to maps.google.com and add your business there. That will give you a profile that people can easily find and contact you. You can also get reviews on it, add photos of your work, promote events, and much more. Don’t sleep on this step, make sure you do it ASAP (well as soon as your website is done).
Step 09 : Get Listed
Add your business across popular business directories. This will help you get more exposure online. Just a heads up that you will get calls from some of these directories, they want to sell you stuff. Whether you buy or not that’s up to you, I personally wouldn’t. Think about creating and implementing your own marketing system, it’s much more affordable and effective. And that’s it. This is how straight forward starting a business is. Next though, you need to think about a cohesive marketing plan, and system that you can follow to grow your business.
Some final thoughts
Starting a business and choosing the right type of company is a big decision. An LLC offers a flexible structure, limited liability protection, and tax advantages, making it a popular choice for many businesses. However, it’s crucial to consider your unique business needs, financial situation, and long-term business goals before deciding to form an LLC. Consulting with a legal or business professional can help you make an informed decision.
