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  1. #1
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    April 22nd, 2012
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    Steps for forming an LLC
    So I am finally at the point where I need to start thinking about forming an LLC. I currently do not have a business license.

    I'm so confused about this process. Do I obtain a business license and then file for an LLC. Or is it essentially the same thing? I feel like such an idiot but I have no idea where to start.

    How about business insurance? Since i'm operating from home I have heard that some insurance agencies allow you to purchase "add on" coverage for your homeowners insurance that covers your business.

  2. #2
    OPM and Moderator Chuck Hamrick's Avatar
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    I formed an LLC through LegalZoom for tax reasons after talking with a CPA. I haven't purchased a business license as I work from home but have considered speaking with the local Chamber of Commerce for advise. I have commercial insurance as was required by several clients and got it through my insurance agent. Start there and they can refer you if need be. If you aren't making any money I would run out and spend a lot of money. Just educate yourself for when you do.

  3. #3
    Member gibson's Avatar
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    Quote Originally Posted by Chuck Hamrick View Post
    If you aren't making any money I would run out and spend a lot of money.


    word! hahaha
    The internet is a fad.

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  5. #4
    OPM and Moderator Chuck Hamrick's Avatar
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    Typo:
    If you aren't making any money I wouldN'T run out and spend a lot of money.

  6. #5
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    So if I am working from home then all I would need is an LCC then? I thought maybe I would need to have both of them.

  7. #6
    OPM and Moderator Chuck Hamrick's Avatar
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    Start by meeting with a CPA.

  8. #7
    ABW Ambassador writerguy's Avatar
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    Quote Originally Posted by smadison View Post
    So if I am working from home then all I would need is an LCC then? I thought maybe I would need to have both of them.
    I agree with Chuck -- you should speak with a CPA, and I would also suggest it be someone locally where you live, not someone with any online organization.

    I mention that because business licensing requirements are generally very specific to the town, county, state, etc., where you live.

    Technically, I am required to have a business license -- but since my business involves no handling or receipt or delivery of products, the city/county where I live simply never enforces that requirement. (If I had a closet or garage full of cleaning products or health products that would be different.)

    So, really, you ought to speak with a city or county official at least where you live. But I would agree that the best starting point would probably be a local CPA who could guide you much better than anyone online as to first-steps.

    Gary
    Generate more fake news.

  9. #8
    AffiliateMan
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    We just formed an LLC from our existing business. It was really simple. I'm in Florida, and the Florida Department of State has an online form to create an LLC. You fill in the form fields then submit the form. Enter your payment info and ... tada ... that's pretty much it.

    After that, I went to the IRS web site and filled out the form to request a tax id (EIN) for the corporation. That was also done quickly through an online form.

    Each year we have to file an Annual Report and pay the fees which are also done online.

    We created the LLC as a "single-person LLC" with the same owner as our existing business. So, it shouldn't affect our tax situation.

    We already had a ficticious name permit, state sales tax number, and a local business license. The requirements for those will vary depending on your county and state.

    When we started our small business, I bought a paperback book on "Starting a Business in Florida." Even though you can find the same info online, it provided a nice checklist of the things to do and the order in which to do them.

    We don't have insurance specifically for our business yet. But, we plan to talk with our agent about it.

    -- Roger
    Last edited by jadebox; January 15th, 2013 at 02:40 PM.

  10. #9
    Member gcgipson's Avatar
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    I'm in New Jersey, and starting up an LLC here is pretty easy. You just have to simply go to the website for the New Jersey online business entity filing.

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  12. #10
    Member
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    i formed LLC twice, in each time through LegalZoom, I would also call the state secretary in order to find out if any license is necessary, they would ask you about the nature of your business and tell you if any license is necessary.

  13. #11
    Tax Paying Member
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    In NC an LLC is state regulated. Professional licenses, engineer, architect, doctors are regulated and granted by the state. Business licenses are regulated and granted by the local government...city..county..etc. There is a catch all license to pick up the businesses that are not specifically regulated by the local government

    Home businesses need to be licensed the same as if you rented commercial space....and can sometimes become more complicated because of zoning restrictions.

    I assume that other states operate in a similar fashion.
    You must climb this mountain. There is no elevator. ---- Don't stick your finger in the liquid nitrogen.
    Carolina China

  14. #12
    Newbie
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    October 26th, 2009
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    Has anyone got any information in setting up an LLC when you live outside the US, which is your main market.

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