Setting up an LLC doesn’t have to be a complicated process. It can be if you have a complex company with lots of owners. But for many folks, setting up an LLC is a simple, straightforward process. While many of my clients spend time thinking about setting up a new business, others are a bit more impulsive. Last week I received a call from a client who wanted to set up an LLC immediately. They had tried to use an online site, but they got bogged down in the forms and language. As he explained, about halfway through, he just gave up trying to sort out the forms. But they’ve got a few deals in the works and they need to get the LLC up and running before the end of 2020. Although it’s been a crazy year, there’s still enough time to get that LLC set up before the calendar turns to 2021.
Why Are You Setting Up An LLC?
Setting up an LLC has become a bit of overused advice. It seems that almost everyone just assumes that they need an LLC. Buying a house? Set up an LLC to own it. Creating a side-hustle business? Yup, you need one too. I’m not here to dissuade anyone from starting a business, but it’s also helpful to think about why you are doing it. Sometimes, an LLC may not be the right corporate form for you. A sole proprietorship might be all you need.
My new client was defaulting to an LLC because he’d read a newspaper article about LLC’s. And if you spend a little time, you’ll likely see the letters “LLC” all over the place. It’s like when you buy a new car and as soon as you drive it off the lot, all you see on the road are more of the same model you just bought. If you’re setting up a business and doing some industry research, you’ll likely come across lots of LLC’s. Before you default to an LLC, put a little thought into whether that’s the right form for you.
Who’s Going To Help You?
While you may have a romanticized version of running a business all by yourself, the truth is, you’ll need a team of people to help you out. There are a variety of different areas of business and it’s highly unlikely you are fluent in all of them. For example, after talking to my client, I reminded him that he would need to get a Tax ID for his business. He didn’t know how to do it or who to call. So we set him up with an accountant for an initial meeting to go over tax issues.
Then we discussed his banking for the business. He uses an online-only bank right now, but I suggested he may want to talk to someone (a live person) in a local branch of a bank who specializes in small business banking. There are lots of ways a small business banker can help you out. One of the most beneficial ways can be if you get in a tight spot and need a line of credit.
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Next Steps
If you are thinking of starting a business or already started your business and want to make sure your legal documents are in order, give me a call and we can set up a Legal Strategy Session to discuss the process and what documents would be best tailored for your company – (877) AMAYERS.
