Expert advice from TRUiC on LLC’s and the advantages that come with hiring an LLC formation service.
What is an LLC?
Limited Liability Companies are recognised as being an official, legal entity. When referring to the LLC’s owners, the term “members” is used instead. Predominantly why entrepreneurs choose to operate this type of business structure is because it offers private asset protection. Therefore, if your business is facing a legal claim for damages/debt (and if the business cannot afford to pay these costs) the remaining debt will not be settled with the owner’s personal assets (such as their house or car).
- Ready to hire an LLC formation service and get your company set up? Here are the best LLC services in the US currently.
Benefits of hiring an LLC formation service
- Increased spare time
- Costs are lowered
- Access to more features and advantages
- Provide assistance to set up other types of business structures
- Legal advice throughout your LLC’s lifetime
Increased spare time
Taking into account the fact that there are typically five steps (depending on your state) required for you to legally form an LLC, hiring an LLC formation service to complete the process for you would certainly free up your time.
A basic package from LLC formation services includes essential products needed to legally set up your LLC in your individual state. You can expect benefits such as:
- The registered agent service to be taken care of,
- Operating agreement to be created,
- A CPA assessment.
A CPA assessment provides you with a professional evaluation of your company’s finances. Included with this will be a recommendation of a CPA specifically suited to your business (and at no cost).
Costs are lowered
Ultimately, by hiring an LLC formation service, you can keep your costs to a minimum. Making use of a monthly/annual subscription fee may be the most economical option. If you break it apart, the fees of setting up an LLC on your own can become pricey. Considering that without hiring an LLC formation service to complete the process, costs can get high by: hiring a registered agent service’s fee (or paying an internal employee’s salary), hiring a lawyer to draft your operating agreement, hiring a CPA for your CPA assessment and more.
Access to more features and advantages
This is subject to which LLC formation service you opt to use. Some services provide additional benefits in their offered packages such as:
- Getting an Employer Identification Number (EIN)
- Assisting with a compliance guarantee
- Setting up your domain registration
As you climb an LLC formation service’s packages, you will find that the higher the price the more features you can get. Therefore, should you have the budget (and require additional services) hiring an LLC formation service may be the choice for you as you can get advanced benefits such as business email, website, and domain privacy.
Provide assistance to set up other types of business structures
If you require assistance forming a business structure that is not an LLC, certain LLC formation services may be able to assist. This may include business structures such as:
- Nonprofit- these are charitable organisations (certain tax exemptions are possible).
- Sole proprietorships- operated by a sole trader (this is usually the owner).
- DBAs- Doing Business As (a trade name/ a name other than the owner’s legal name).
- Corporation- this can be a C-Corp (a legal entity separate from its shareholders and subject to double taxation) or an S-Corp (where the tax classification, owner and/or member is considered to be an employee earning a salary).
Legal advice throughout your LLC’s lifetime
If you predict that your LLC will need ongoing legal assistance, there are LLC formation services that can help you. Certain services go beyond only forming your LLC as they offer legal and business assistance throughout your LLC’s lifetime.