Creating an LLC for a new small business

[Anonymous]

Hi there,
I'm starting a small business that I'll run from my home office. We have a business plan, a name, branding, business accounts and a web domain. My next step is an LLC. If you've formed an LLC for a small business did you file yourself on the state website (in this case VA) or did you use one of the web-based services (Legal Zoom, Northwest, Zen Business, etc.). Whichever you went with, are you happy with the decision? Would you have done something differently?
Thanks very much for any advice you can give on LLC formation!

[Anonymous]

Anonymous wrote:Hi there,
I'm starting a small business that I'll run from my home office. We have a business plan, a name, branding, business accounts and a web domain. My next step is an LLC. If you've formed an LLC for a small business did you file yourself on the state website (in this case VA) or did you use one of the web-based services (Legal Zoom, Northwest, Zen Business, etc.). Whichever you went with, are you happy with the decision? Would you have done something differently?
Thanks very much for any advice you can give on LLC formation!

I used Legal Zoom, but I created a DE LLC which requires a registered agent in DE which all these various companies provide for you.

I'm not sure I would do anything differently other than price shop. They all basically offer the same thing and it's pretty straightforward.

[Anonymous]

Hi there,

Are the benefits to a DE LLC that I should consider instead of registering in VA?

[Anonymous]

My husband and I used legalzoom. After forming our llc all we had to do since we're in NY was pay for 2 newspapers to do a publication of our llc for 6 weeks then send the receipt of said publications to NY state and pay a filing fee.

[Anonymous]

Anonymous wrote:Hi there,

Are the benefits to a DE LLC that I should consider instead of registering in VA?

It’s a more shareholder friendly state if you plan to bring on investors in the future.

[Anonymous]

Oh boy. Maybe you should take some business classes via adult education?

[Anonymous]

I have advice op.

Do this the right way. Your first llc should be named very general. Like Your Name Consulting. That way it can be a catch all for more service should you pivot later.

I wouldn’t worry about registering it necessarily until you have made a sale. I mean this is up to you. What I learned—i was ready to make my business accounts, etc early. But the forms all ask “first date you made a sale” or “first day formed.” This can be backdated, as I kept thinking “I haven’t made a sale yet.”

This is why I suggested to go ahead and make a non-branded generic llc first.

Then you have the llc for liability protection. You can start getting your checking accounts. You may want it to receive money (say via credit card payments via Stripe). **As you promote specific products, you can name them whatever you want. When those products make a sale, you can create a DBA. Same company, different name.

This is advice I wish I knew 2 years ago. Spend very little up front on names, branding. Get a generic business name than can pivot. Start there.

[Anonymous]

Go to the IRS website and get an EIN for the LLC. You’ll need it for banking, taxes, and other filings.

If you’re in VA, go to the state website and do the steps to register.

[Anonymous]

Just open it in VA. Yes, DE is more shareholder-friendly, but that only matters if you plan to raise outside capital. First get your business going and prove it's viable.

You can create it online in VA, then get your IRS EIN. Your CPA can help as needed.

[Anonymous]

I am in Maryland but filed directly with the state. It was easy and cheap and took like a day to come through.

[Anonymous]

I am in VA and created an LLC via the state website. It was very easy and, as I recall, there was a guide to walk me through the process. If you haven't already I'd definitely check out the fed and VA small business info available online. Good stuff.

[Anonymous]

I did it myself in DC, it was very simple. I wouldn’t pay anyone else to do it.

[Anonymous]

I used my name. Much easier for filing taxes. I used Zen. It has been fine.

[Anonymous]

Anonymous wrote:I used my name. Much easier for filing taxes. I used Zen. It has been fine.

You don’t file a separate tax return for an LLC. The name of the company doesn’t make your tax filing any easier (or harder).

[Anonymous]

I paid a CPA a small amount to file for the LLC and EIN. It saved me some time and stress so it was worth it for me, but totally agree you could do it yourself.