The Benefits of This Service
Getting credit in the name of your business and without personal liabilities means creating a separate business entity, either an LLC or a Corporation (S-Corp or C-Corp). Some types of firms need to organize as an LLP. For most small businesses, operating as an LLC requires much less in terms of organization and reporting requirements, and provides you with all of the legal protection of being a corporation. You will need to set up your business as an LLC or corporation in order to get business credit without any personal guarantee. Your LLC will have its own EIN, which is your IRS Employer ID Number. You will need the EIN even if you choose to have no employees.
Getting an LLC established does not require that you use a law firm or pay outrageous fees to get your LLC set up. For most types of startup single-member businesses, there is no need for complicated agreements. LLCs themselves to not pay any income taxes. Instead, the LLC passes through its profits or losses to its members, who in most instances is simply the business owner. Regarding the state of registration, different states offer different benefits regarding set up fees and ongoing fees, but if you set up an out-of-state LLC, you will have additional requirements such as paying for a “Registered Agent” in your state, and filing to do business in your state. Unless you have good reasons to register your LLC in a state other than your own, simply file in your own state.
If your state has high set up or annual fees (or even a high dissolution fee), consider our PA LLC service. Along with our regular fee, we will register your LLC in Pennsylvania for their $125 filing fee. We will also provide you with one year Registered Agent service at no additional cost. Going forward, our Registered Agent service is as low as $9 per month. Using our Registered Agent service, any legal documents that are sent to you by the State of PA will be scanned, digitized and stored for you.
Note that PA only requires a decennial report (one report every 10 years) for a fee of just $70. This reduces your ongoing cost and paperwork significantly. As us about our PA LLC service if you would like us to create and register your LLC.
What We Will Do for You
Under our Business Entity Creation service, we will do the following :
- Prepare a base LLC Operating Agreement for your business
- Create and submit your state’s Articles of Organization
- File for your IRS Employer ID Number (EIN)
- Determine your business’s most applicable NAICS code
- File for a DUNS number with Dun & Bradstreet
- Optional – PA LLC registration ($125 state filing fee) with one year Registered Agent service included in our fee.
Along with our fee, you will be responsible for paying your state’s LLC filing fees, payable in advance using a credit or debit card. Note that we do NOT provide legal advice! If you are unsure about the structure of your business entity, please consult with an attorney.
Getting the right NAICS code is very important if you want to avoid being turned down by potential lenders for having what may be considered a “risky” type of business, which they base on your exact NAICS code. If you want to learn more about the importance of getting the right NAICS code, read our NAICS Code article.