Starting your own business can be both exciting and overwhelming. One of the first steps to setting up a successful business is deciding on the right legal structure. A Limited Liability Company (LLC) is a popular choice for many entrepreneurs. In this blog, we’ll explain what an LLC is and why it’s beneficial and provide a step-by-step guide on how to set up an LLC easily in 2024 using Northwest Registered Agent.
What is an LLC?
An LLC, or Limited Liability Company, is a business structure. It combines a partnership’s flexibility with a corporation’s liability protection. Essentially, it shields your personal assets from business liabilities. If your business faces legal action or debt, your personal assets—such as your home or personal savings—are generally protected.
Benefits of an LLC
There are several reasons why many small business owners choose to form an LLC:
- Liability Protection: An LLC’s main benefit is that it protects your assets. They can’t be used to pay business debts or settle lawsuits. If your LLC is sued, your personal finances are generally safe.
- Tax Flexibility LLCs offer flexible tax options. By default, an LLC is treated as a pass-through entity, meaning the business does not pay taxes. Instead, profits and losses are reported on the owners’ personal tax returns. However, LLCs can also be taxed as a corporation if it benefits the business.
- Easy to Form and Manage: Creating an LLC is simpler than starting a corporation. It needs fewer paperwork and rules, making it perfect for small businesses and solo entrepreneurs.
- Credibility and Professionalism Operating as an LLC can enhance your business’s credibility. Customers and clients may view your company as more professional when it operates under an LLC. Now that we’ve covered the basics of an LLC and why it’s beneficial, let’s move on to how you can start your LLC in 2024 with Northwest Registered Agent.
Step-by-Step Guide to Starting an LLC with Northwest Registered Agent
Northwest Registered Agent is a reputable company helping entrepreneurs set up LLCs. It ensures your business is set up and compliant with the law. Here’s how you can set up your LLC with them:
Step 1: Sign Up to Northwest Registered Agent with an Exclusive Deal
If you’re looking for an affordable way to start your LLC, Northwest Registered Agent offers an exclusive deal where you can create your LLC for just $39 through this link below.
This package offers all necessary LLC formation services, making it affordable for new business owners. Plus, you get a free registered agent service, usually costing $99 to $300, Business Address, Business Email, Domain Name, Custom Website, Mail Forwarding, Privacy by Default®, and Corporate Guide® Service. This deal is a great way to save money while ensuring your business meets legal requirements.
Step 2: Choose Your Business Entity Type
The first step is to select an LLC as your business entity type. This decision is straightforward if you seek liability protection and tax flexibility.
Step 3: Fill Out the Beneficial Ownership Information Form
Next, fill out the Beneficial Ownership Information (BOI) form. It’s a legal requirement. This form ensures transparency by identifying who owns and controls the LLC.
Step 4: Select the State for Your LLC Formation
You’ll need to choose the state where you’re forming your LLC. Most business owners select their home state, but some prefer other states like Delaware or Nevada due to favorable business laws. Northwest Registered Agent will guide you through the pros and cons of each state to help you make an informed decision.
Step 5: Choose a Filing Option
Northwest Registered Agent offers several filing options depending on how quickly you want your LLC to be formed:
- Standard Filing: This is the most economical option and typically takes a few weeks.
- Expedited 8-Day Processing: For faster results, choose this option to have your LLC formed in about eight days.
- Expedited 6-Day Processing: This is the fastest option if you need your LLC set up urgently.
Step 6: Provide Your Business Details
You’ll then need to provide some basic information about your business, including:
- Business Name: Choose a unique name that complies with your state’s LLC naming requirements.
- Business Purpose: Briefly describe what your business does.
- Physical and Mailing Address: Provide the physical location of your business, as well as a mailing address if it’s different.
Step 7: Choose the Structure of Your LLC
Decide whether your LLC will have a single member (you alone) or multiple members (partners). This decision will affect how your LLC is taxed and managed.
Step 8: Provide Your Contact/Company Details
You’ll need to enter your contact/company information, including your name, phone number, and mailing address. This information is necessary for official communications and legal notices.
Step 9: Set Up an Account with Northwest Registered Agent
Creating an account with Northwest Registered Agent is straightforward. This account will allow you to track the status of your LLC formation, manage your documents, and access your registered agent services.
Step 10: Decide on Business Identity Services
Northwest Registered Agent offers a business identity service that includes domain name registration, website hosting, business email address, and a business phone number. These services are free for the first 90 days, which is a great way to get your online presence started without additional upfront costs.
Step 11: Choose Optional Add-Ons
You can also select optional add-ons to customize your LLC formation experience:
- Tax ID (EIN Number): This is essential for opening a business bank account, hiring employees, and filing taxes. Northwest can obtain your EIN for an additional $50.
- Elect Your LLC as an S Corporation: If you want your LLC to be taxed as an S corporation, Northwest can handle this for you.
- Premium Mail Service: This service includes mail forwarding and scanning. It’s useful if you work remotely or lack a physical office.
- Trademark Service: Protect your brand. Register your trademark using Northwest’s trademark service.
Step 12: Review Your Order and Submit Payment
Finally, review all the details to ensure everything is correct. The total cost to start an LLC with Northwest Registered Agent is $188, which includes:
- Basic Package ($39): This covers the essential LLC formation services.
- Processing Fee ($90): This fee goes directly to the state.
- Business Identity Service (Free for 90 days): Includes domain, website hosting, email, and phone number.
- EIN Filing ($50): Optional but highly recommended.
- BOI Report ($9): Required by law.
Once you’re satisfied with your order, submit your payment, and the Northwest Registered Agent will take care of the rest.
Conclusion: Is Starting an LLC in 2024 the Right Choice for You?
Starting an LLC in 2024 is smart for entrepreneurs. It protects personal assets, offers tax flexibility, and builds business credibility. Northwest Registered Agent simplifies the process. For $188, you can form an LLC, set up a registered agent, and create an online presence, all in days. Whether you’re starting a new business or looking to formalize an existing one, forming an LLC with Northwest Registered Agent is the easiest way to get started in 2024.
