There are numerous advantages to forming an LLC company instead of incorporating as a corporation or s-corporation. An LLC company offers the same liability protection as a corporation entity but offers less taxation, less formalities and easier management for the owner(s). For this reason the LLC company has surpassed the corporation as the leading entity for entrepreneurs looking to protect themselves from business debt, build business credit and put more capital toward the business by saving on tax costs.

LLC owners, known as “Members” instead of shareholders because an LLC company does not require the issue of corporate stock, have the advantage of friendlier taxation in that the LLC’s profits and losses are added to the Member(s) personal tax return. LLC Members also need not worry about their personal credit affecting the business as the LLC company is a separate and private entity with its own distinct credit profile.

An LLC company might be the best structure if there will be multiple owners of the company. The LLC company is operated according to the Operating Agreement, the LLC’s foundation document of rules and procedures that are adopted by the Members at the time of LLC formation. The Operating Agreement serves as the written agreement between LLC owners to resolve disputes and outline a structure to manage the LLC on a day-to-day basis. The LLC Operating Agreement may be modified as the business evolves, after discussion and approval by all Members.

The LLC company is also an option if you would prefer a less formal structure. LLC Members typically are not required to hold regular meetings, and only hold one Annual Members Meeting. LLC Members are also not required to write numerous resolutions and minutes, as the officers/directors of a corporation are required. An LLC also has fewer compliance restrictions such as no U.S. residency requirements and no limit on the number of LLC Members.

An LLC company is also beneficial the self-employed individual seeking personal liability protection, more simplified taxation and business credit. The 1-Person LLC is now recognized in all 50 states and serves as a legal entity separate from the personal interests of the owner. The 1-Person LLC is a great alternative to a sole proprietorship, which does not offer the same personal and financial protection as an LLC company. Members may be added to the 1-Person LLC as the company grows.

Starting a business can be costly, but working with an online incorporation service can help LLC Members free up some of the starting capital by filing the necessary paperwork for you, for nominal fees. Additionally, a good online incorporation service will walk you through all the steps you need to take to successfully get your LLC running. Be cautious of any service that makes big promises for tiny prices. In addition to the service fee, you will always have to pay state fees to set up your LLC—and some online services will try to hide this from you. Choose an online incorporation service that you trust and you will save both time and money while effectively starting your LLC.

Forming an LLC as your company’s legal business entity can seem like a complicated process, but doesn’t have to be if you know how to form an LLC right from the start. You will save yourself time and money by knowing how to form an LLC before you begin the formation process.

An LLC is the small business owner’s most popular alternative to incorporating as a corporation or s-corporation due to the LLC’s limited compliance requirements and easy management. Many entrepreneurs will learn how to form an LLC for both personal and financial benefits, whether the LLC is operated by one person or works as a partnership between a group of people. Unlike the shareholders of a corporation, the owners of an LLC are called “Members” and do not receive stock or require official titles. The Members of an LLC most typically choose to manage the LLC themselves in what is called a Member-Managed LLC. In a Member-Managed LLC, the Members participate in the day-to-day business operations according to the LLC Operating Agreement, which is an LLC’s foundation document containing all the rules, procedures and practices for running the company.

How to form an LLC company and properly organize it requires that you determine what percentage of ownership will belong to each Member, if you are not the only owner of the LLC. If you are a self-employed individual seeking personal liability protection, more simple taxation and a boost in business creditability, you may also form an LLC. The 1-Person LLC is now recognized in all 50 states and serves as a separate legal entity from the owner’s personal interests, thereby offering a shield from business debt and potential lawsuits.

You can easily form an LLC online to save yourself the confusion of figuring out the formation process on your own or paying much more than necessary to a lawyer or other legal professional that might add their fees onto the necessary LLC filing fees. A good online service will file your state paperwork and guide you through the steps you need to take as you’re learning how to form an LLC. Many online services will assume you know how to form an LLC and will do very little to help you once the official paperwork has been filed, so be sure to find an incorporation service that is thorough and trustworthy.

As you become familiar with how to form an LLC, you will need to choose a state for your LLC formation. It is most common for an owner to form an LLC in their home state to avoid having to pay extra fees for filing in another state. While there may be valid reasons for filing in the business-friendly states of Delaware, Nevada and Wyoming, entrepreneurs should know that virtually every state requires an LLC to re-register in its state of operation as a “foreign corporation” (a company that was not originally formed in the state of its physical location) and that this usually results in additional costs.

Another step of how to form an LLC is to appoint a registered agent. A registered agent is a person or entity that receives official documentation on behalf of the LLC. Your online filing service should be able to assist you in appointing the proper registered agent for your LLC and answering any questions you may have about the purpose of a registered agent.

As you create a legal entity for your business, you may need more information about the benefits of forming LLC. Forming LLC is an effective way for small business owners or individuals to protect their personal liability, manage their company and reduce taxation. Forming LLC also makes it easier for an entrepreneur to keep up with the necessary legal forms and simplifies day-to-day business operations by following the foundation guide of an LLC, the Operating Agreement.

LLC owners are known as “Members” instead of “Shareholders” because an LLC does not require the issue of stock or holding regular shareholder meetings. The Members of an LLC typically meet during the Annual Members Meeting to determine if the LLC Operating Agreement needs to be altered due to company changes or business growth. The Operating Agreement serves as a guide to managing the company and should include procedures and practices for successful business operation, as set forth by the Members at the time of forming LLC.

Forming LLC instead of incorporating as a corporation or s-corporation can be beneficial for entrepreneurs who seek less compliance requirements and more tax flexibility. Legal requirements of LLC operation are less formal than a corporation or s-corporation in that the LLC owner does not have to write numerous resolutions and company minutes or track shares of stock. An LLC owner is also removed from processing complicated tax information. An LLC’s profits and losses are added onto the personal tax return of the owner(s), much like a sole proprietorship. Unlike a sole proprietorship, however, an LLC offers personal liability protection and allows the building of business credit.

A small business owner or an individual seeking the benefits of a legal entity will still need to follow a certain guide when forming LLC. If the LLC is to be operated by more than one Member, percentage of ownership will need to be determined  at the time of formation. It will also need to be determined if the LLC will be Member-Managed or Manager-Managed. Entrepreneurs who want easier management will operate a Member-Managed LLC, in which each Member participes in the daily activities of the business. The Manager-Managed LLC is less common and with day-to-day operations managed by a designated manager or managers (who may or may not be a Member or Members), with the LLC Members usually only involved as investors.

When forming LLC, you will need to determine the state for LLC formation. The majority of LLC formations happen in the in the home state of the owner(s) for the convenience and most cost-efficient formation. Forming LLC in a state such as Nevada, Delaware or Wyoming for the business-friendly climates of these states still requires that an LLC with a physical office elsewhere re-register in that state. For example, an LLC that is formed in Nevada is still required by the the state of Virginia to re-register the LLC as a “foreign corporation” (a company that was not originally formed in Virginia) and you would typically be subject to all the same annual fees and taxes as an in-state company.

Forming LLC provides numerous benefits to the busy entrepreneur who seeks ease of management, less complicated taxation and personal and financial liability protection. An LLC formation can be started online the same day as the LLC order is filed, with official state filing taking anywhere from 3 days to several weeks depending on the state.

When considering the business entity best suited to your needs as an entrepreneur, you might choose to form a Limited Liability Company (LLC). A small business owner who chooses to form LLC, rather than incorporate as a corporation or s-corporation, operates an entity with fewer legal formalities and friendlier taxation. LLC formation also results in easier management and limited compliance requirements.

Before you form LLC, you will need to know what’s involved to operate an LLC. The owners of an LLC are known as “Members” rather than “Shareholders” because an LLC does not require the issue of company stock. At the time of LLC formation, the Members adopt the Operating Agreement, which is the central document of an LLC and stands as the Members’ written agreement to follow the rules and procedures for operating the LLC. The Operating Agreement should also specify what percentage of the LLC each member owns. Members can make changes to the Operating Agreement as the business changes and grows.

If you form LLC, you will need to determine if the LLC will be Member-Managed or Manager-Managed. The Member-Managed LLC is the best choice or entrepreneurs who prefer ease of management and is therefore the most common form of LLC management. A Member-Managed LLC is managed with each Member participating in the daily activities of the business. If an LLC is Manager-Managed, the company designates a manager or managers (who may or may not be a Member or Members) to run the business day-to-day with the Members typically only involved as investors.

It may be of personal and financial benefit for an individual to form LLC. The 1-Person LLC is now recognized in all 50 states and offers personal liability protection, business credit building and easier taxation. The 1-Person LLC is taxed like a sole proprietorship with the LLC profits and losses added to the owner’s personal tax returns, and is a great alternative to entrepreneurs just starting out who may want to add additional Members to their LLC in the future.

Regardless of the LLC’s size or purpose, you need to choose a state in which to form LLC. The majority of entrepreneurs form LLC in their home state for convenience, in addition to avoiding the extra fees that add up with LLC formation in another state. If you were planning to form LLC in Delaware but operate your physical business in California, for example, the state of California would require you to re-register the LLC as a “foreign corporation” (a company that was not originally formed in California) and you would typically be subject to all the same annual legal fees, licenses and taxes as an in-state company. If you form LLC in the states of Delaware, Nevada or Wyoming, know that virtually every state has laws that require an LLC to re-register these states’ LLC’s in their home state.

If it seems like the best option for you to form LLC, you can efficiently form LLC online using an online incorporation service. Online LLC formation allows you to file the LLC’s Articles of Organization or Certificate of Organization in accordance with state law and is a good way to follow all legal procedures while saving time to focus on your business.

When starting a company, many entreprenurs decide to form a Limited Liability Company (LLC) rather than incorporate as a corporation or s-corporation. Because an LLC provides easy management and limited compliance requirements, it has surpassed the corporation as the choice entity for small business owners. An LLC provides the same liability protection as a corporation without the corporate formalities. The owners of an LLC are known as “Members” and operate by rules set forth in the Operating Agreement, which can be modified with Members’ approval as the business changes and grows.

Small business owners who form an LLC have the additional benefit of less complicated taxation. Much like a sole proprietorship or partnership, LLC profits and losses are added to the owner(s) personal tax returns. Additionally, you may choose to form an LLC as an individual to reduce your personal liability and shield yourself from business debt or any potential lawsuits. The 1-Person LLC is now recognized in all 50 states.

To form an LLC, first the Member(s) must choose the state in which to form an LLC. The majority of small business owners choose their home state for convenience, in addition to avoiding any extra fees to forming an LLC in another state. For example, if you were planning to form your LLC in Nevada but operate your physical business in Texas, the state of Texas would require you to re-register your LLC as a “foreign corporation” (a company that was not originally formed in Texas) and you would typically be subject to all the same annual fees and taxes as an in-state company. There are valid reasons for some LLC’s to be formed in the business-friendly states of Nevada, Delaware or Wyoming but if you form an LLC in one of these states you will need to know that virtually every state has laws that require an LLC to re-register a Delaware, Nevada or Wyoming LLC in their home state.

Once you have chosen the state for your LLC formation, you can form an LLC online. Forming online is an efficient way to file your Articles of Organization or Certificate of Organization in accordance with state law. Starting the process to form an LLC can be done the same day with an online order, but processing the state paperwork will take longer depending on the state in which you form an LLC. Some states take 3 days, but others will take several weeks.

When you receive your LLC filing back from your state, you and any Members of your LLC will need to adopt the LLC Operating Agreement to determine the percentage of ownership by each member. The Operating Agreement is also the central document of an LLC and stands as the Members’ written agreement to resolve disputes and follow procedures. The Operating Agreement should include methods for adding or removing any Members, distributing profits and handling internal matters. Managing an LLC typically requires only one Annual Members’ Meeting to discuss and approve any changes to the Operating Agreement.

An LLC can be managed in one of two ways: Member-Managed or Manager-Managed. In a Member-Managed LLC, the business is managed with each Member participating in the company’s daily activities. In a Manager-Managed LLC, the company designates a manager or managers (who may or may not be a Member) to run the business day-to-day with the Members typically only involved as an investor. The most common way to manage an LLC is Member-Managed, especially for small companies that are looking for ease of management.

There are advantages to forming an LLC that might be right for you, including the safeguarding of your personal liability, building a separate business credit profile, adding creditability to your business, simplified management and protection of your 1-person company if you form an LLC as an individual. You can form an LLC online using an online incorporation service.

• Entrepreneur.com Daily Dose – The State Of Entrepreneurship http://ow.ly/Z8jn #
• 3 Ways to Talk So Clients Listen http://ow.ly/Z82k #
• Eight Steps to Attracting Clients http://ow.ly/YHW5 #

• Startups: 10 Things MBA Schools Won't Teach You http://ow.ly/Wjzh #
• Incorporation and LLC Formation Free Guidebook http://ow.ly/WOvE #
• How Companies Can Help in Haiti – Harvard Business Review http://ow.ly/WDrq #
• Why You Must Adopt an Entrepreneurial Type Mindset In This Day and Age http://ow.ly/Wk9N #
• Home based Businesses You Can Start In Your Pajamas in 2010 | Inc.com http://ow.ly/VFOC #
• Can You Bootstrap? – Harvard Business Review http://ow.ly/VttG #
• Seth's Blog: The lesson from two lemonade stands http://ow.ly/VeT3 #
• How to Run a Business from Home | Inc.com http://ow.ly/VeDG #

• About what I expect: IRS Has 70% Error Rate in Issuance of Taxpayer ID Numbers, Resulting in Fraudulent Tax Refunds http://ow.ly/P6rq #

Just like every new year, we expect this January through March of 2010 to be busy. For tax reasons, many people delay their filing until the new year which creates a large backlog for each state’s filing office. Further exacerbating the problem this year is the fact many states have cut back staff – some states have even furloughed employees to meet budget deficits.

Because of this, we always recommend our “Rush Filing” option during this time if you are in any kind of a hurry to get your paperwork filed. Note that we do not keep any of the “Rush Filing” fees ourselves – they simply cover overnight and/or hand-delivery fees as well as any state-level expedite fees.

Thanks and don’t hesitate to contact us if you have any questions.

• RT @dja2law: Out-House General Counsel: 25 Free Legal Resources for Start Ups: http://bit.ly/5qoLDr via @addthis #
• Create a Call to Action on Your Web Pages http://ow.ly/OFQJ #
• Join our incorporation and LLC formation Affiliate Program | $25-35/sale: http://www.mynewcompany.com/affiliates.htm #
• RT @BizStart: Small Business Tax Management Essential to Business Success http://trcb.us/W6c #
• Free Incorporation and LLC Formation Guidebook: http://www.mynewcompany.com/startcompany.htm#1-6 #
• RT @SmallBizChamps: Delegating can bring relief from small-business stress http://bit.ly/8Vah2Y #

• @CJAnyasor we can help you with your LLC if you want: http://www.mynewcompany.com/startcompany.htm in reply to CJAnyasor #
• 10 Ways to Make Your Web Site Answer Customer Phone Calls http://ow.ly/Nd9p #
• Another Entrepreneurial Myth Busted – The Entrepreneurial Mind http://ow.ly/Nc72 #
• Catching the Seasonal Wave Part 1 – E-Myth Worldwide http://ow.ly/MOih #
• How to Stay Productive During the Winter Holidays – Stepcase Lifehack http://ow.ly/MsUQ #
• 10 Tips for Saving Your Life From Your Business http://ow.ly/Mn2J #
• It’s All About Selling for Survival http://ow.ly/MrFz #
• Ask for the sale when they are most interested in you http://ow.ly/M5K4 #

***IMPORTANT NOTICE***

2009 Holiday Hours

The following is a notice of our order cutoff date, office closings and limited office hours for the 2009/2010 Holiday Season.

“Limited Hours” means we will have limited operating hours and our phones will be turned off, we will however be a) shipping completed orders to clients and b) answering emails and voicemails for several hours/day. 

• Wednesday, 12/23/2009: OPEN: ALL ORDERS RECEIVED AFTER 12PM PST ON 12/23/2009 WILL BE PROCESSED ON 1/4/2010.
• Thursday, 12/24/2009: CLOSED for Christmas Eve
• Friday, 12/25/2009: CLOSED for Christmas Day
• Monday, 12/28/2009: Limited Hours
• Tuesday, 12/29/2009: Limited Hours
• Wednesday, 12/30/2009, Limited Hours
• Thursday, 12/31/2009, CLOSED for New Years Eve
• Friday, 1/1/2010, CLOSED for New Years Day

We will resume normal business hours (9am – 5pm PST) on January 4, 2010 (the 1st business day of 2010) and will process all orders received.

If you have any questions or concerns about these holiday hours don’t hesitate to contact us.

• Government Health Care: Like the Postal Service? HarvardBusiness.org http://ow.ly/KNNh #
• Have You Started Planning for a Successful 2010? Here’s How! – Stepcase Lifehack http://ow.ly/KFuE #
• Startup Founder Equity Split | The Startup Lawyer http://ow.ly/KnFm #
• Best Small Business Books 2009 | Small Business Trends http://ow.ly/KnDR #
• Mark Cuban’s Bold Idea for Jobs: http://ow.ly/JG0w #
• Build a system, not a product: http://ow.ly/JFZK #
• Ten Tips for Growing Your Small Business http://ow.ly/JFFK #

• Mark Cuban’s Bold Idea for Jobs: http://ow.ly/JG0w #
• Build a system, not a product: http://ow.ly/JFZK #
• Ten Tips for Growing Your Small Business http://ow.ly/JFFK #

Build a system, not a product: http://ow.ly/JFZK