The LLC Resource Center
Provided By Attorney Bob Montgomery - 30+ Years Setting Up LLC's & Corps 1-888-527-6207
Learn How to Set Up An LLC Yourself
Watch the Short Video Below
I should really check this part of the forum more often. I just spent $97 for a four-week teleseminar with an attorney to learn all about setting up your business as an LLC.
Thanks, Bob! This is fabulous info . . . . . . . . . Jillian Slack
Read What Warrior Forum
Member Jillian Slack Had to Say
STEP 1: Check Name Availability and File Articles of Organization
with the State Filing Office: The first step in setting up an LLC,
is to choose a name and check with the state where you intend to file to
see if the name is available. You can do this by . . . (READ MORE)
STEP 2: Prepare Organizational Minutes: It is commonly accepted that one
of the benefits of setting up an LLC is that they are considered less formal
than corporations and don’t require the members to hold meetings and
prepare minutes. That's only partially correct . . . . (READ MORE)
STEP 3: Prepare & Adopt An Operating Agreement: Once the
Articles of Organization have been filed with the state, the Members
of the LLC should prepare and sign an Operating Agreement. This is one
of the most important steps in setting up an LLC . . . (READ MORE)
STEP 4: Obtain New Employer ID (EIN) & Set Up New
Bank Account: Every new entity - whether it be a corporation or
LLC, requires a new EIN from the IRS with the exception of a . . .
The fastest way to get a new EIN is . . . . (READ MORE)
"Setting Up An LLC Yourself
4 Essential Steps"
Business Owners have been calling me
for more than 25 years to ask what I
recommend as the best entity - corporation
or LLC - to use for their business.
Here’s my number #1 choice for most small
businesses. I now regularly recommend setting up an LLC that makes the S corporation tax election. But that wasn’t always the case. Read on and I’ll explain why.
In the past, I’ve been partial to S corporations and have operated my own law practice for many years as an S corporation. S corporations provide good liability protection and may provide significant tax savings with respect to the 15.3% FICA or Self Employment Tax if set up properly.
S corporations provide the same liability protection as regular corporations which have a long legal history in the courts with respect to liability and tax issues. This provides good predictability of the outcome when you go to court or fight with the IRS.
I still believe S corporations are a good entity choice for small businesses. So why do I now routinely recommend setting up an LLC that makes the S corporation election?
Let me explain. LLC’s provide the same or similar liability protection as do corporations. LLC’s have now been around long enough that they are starting to have more predictability with legal and tax issues. Setting up an LLC that makes the S corporation election can also save on the FICA taxes just like an S corporation. LLC’s tend to be more flexible and easier to operate than corporations. Depending on state law, it may be harder for creditors to get to the ownership interest of an LLC than it is to get to stock ownership in a corporation.
Having said all of that, you don't go wrong with either an S corporation or an LLC, but my choice is to setup an LLC.
Why Operating Your business as a Sole Proprietor or General
Partnership is Very Risky From a Liability Protection Standpoint
One of the most important reasons for forming any legal entity like an LLC or corporation to run your business is
I don't need to tell you that a growing lawsuit epidemic is going on in the United States and it only appears to be getting worse. Statistics reveal that 1000's of lawsuits are being filed each month and small business owners are prime targets. It may be a disgruntled former employee
. . . a customer . . . a business competitor . . . a total stranger . . . some government agency . . . the list goes on.
Operating a business as a sole proprietor or general partnership provides absolutely no protection against lawsuits. You leave your personal assets wide open to risk.
Don’t get me wrong. I’m an absolute believer in small businesses. They're great . . . they help make dreams come true for many people and they can be your path to financial freedom, independence and success. They are the back bone of our society and one of the main supports of our national economy. My father was a small business owner all of my growing up years. I’m strongly in favor of small businesses.
But, small business owners need to protect themselves. The most important step you can take to protect yourself is to operate your business through a properly formed and maintained entity like an LLC.
The LLC entity was specifically created by law to provide a layer of protection between the business and its individual owners. With our lawsuit crazed society, the number of LLC's being formed has grown by over 90% in the past few years. The main reason is protection.
The Best Way to Reduce Your Risks
The best way to reduce the risks to small business owners is through intelligent business planning. Many new business owners think that lawsuits and personal loss will never happen to them. Please don’t make that mistake. Once a lawsuit is filed, it’s almost always too late to start thinking about forming an LLC . . . because liability starts when the injury or damage occurs and forming an LLC is not retroactive. You can’t go back and say . . . I should have done it.
If you are going to start a business, it’s crucial that you take the necessary steps to protect yourself right up front or as soon as possible. If you haven’t done it yet, don’t delay or procrastinate . . . Set up your LLC now.
Wise business planning includes the formation of the proper business entity and the purchase of liability or business risk insurance when available. You cannot eliminate every possible risk when starting a business but you can substantially reduce the likelihood of a devastating lawsuit through proper planning.
From a liability stand point, you are always in a much stronger position to protect your personal assets when you operate as an LLC or corporation. If you operate your business as a sole proprietor or general partnership, there is no protection.
If you have any questions about forming or setting up an LLC or how to operate one after its set up, please feel free to contact me. I'm always happy to visit with you and answer your questions. My toll free phone number is 1-888-527-6207.
P.S. When you get your FREE copy of "Setting Up An LLC Yourself - 4 Essential Steps" I'll also tell you about a
couple of little known options to form your own LLC for
a fraction of the usual cost.
Why Setting Up An LLC Is My #1 Choice For Most Small Business Owners
To: Business Owners
From: Attorney Bob Montgomery
Attorney Bob Montgomery
Free Consultation Always
Setting Up An LLC 1-888-527-6207
This website provides information about setting up an LLC yourself. The website is owned by Documents, Inc., dba The LLC Resource Center and much of the information about forming an LLC has been provided by attorney Robert (Bob) Montgomery. Bob has been counseling and incorporating businesses for more than 25 years. During that time he's helped set up more than a 1000 corporations and limited liability companies (LLC's). He's a former business owner himself and has been corporate legal counsel for numerous small business corporations. He's presented lectures and seminars on the benefits and procedures involved with incorporating or setting up an LLC and how to operate them for maximum benefit. He is a respected member of the legal community and is licensed to practice law in three states. References will gladly be provided upon request. The information presented herein is provided for general information purposes only. While every attempt has been made to verify the information provided in this website, neither the author nor his affiliates/partners/agents assume any responsibility for errors, inaccuracies or omissions. Neither The LLC Resource Center nor any of its employees or agents can provide legal services or legal advice. The information available from this website is provided for general information only and should not serve as a substitute for legal advice from an attorney familiar with the facts and circumstances of your specific situation.
Setting Up An LLC - 4 Essential Steps - Documents, Inc., dba The LLC Resource Center - www.incsource101.com/setupllc/index.html
2160 S. Twin Rapid - Boise, ID 83709 - email@example.com - Copyright 2009, All Rights Reserved - Setting Up An LLC
"Setting Up An LLC Yourself
Has Never Been Easier"
Setting Up an LLC is Not Hard But
You Must Complete "4 Essential Steps" or
Risk Losing Valuable Liability Protection