Set up your consulting business properly. It can be tempting to use a DIY approach and handle everything yourself. But that might take too long. Consider a guide to get your business up and running immediately. Here are steps to help you get started. The sooner you get through the steps, the sooner you can prevent potential issues, fix problems, and more. When you reach the last step, you should know more than enough to start your LLC consulting business.
Why Choose an LLC for Your Business?
Before setting up an LLC for consulting, be clear about why you’re choosing LLC. It comes with plenty of advantages, which include:
- Liability protection. You won’t be liable if your business incurs debts or gets sued. That protects your assets under the law, giving you significant financial wiggle room if your business fails.
- Easy set-up. Setting up an LLC business is complex compared to a sole proprietorship, for instance. However, the presence of corporation filing services offers a convenient workaround for this issue. Hiring filing experts to take care of the paperwork and handle the process means you can expect the experience to be fast and efficient.
- Flexible tax treatment. You can enjoy more flexibility with your tax payments. Your profits and losses are recorded under your individual tax form. You don’t get taxed on a business level, which reduces the amount you pay.
How Do You Start an LLC?
Starting a consulting company takes you a few steps closer to achieving your dream of building and starting a business. Here are easy steps to follow:
Start with a Name
The name must be original. If another business already uses that name, discard it. Otherwise, you can get sued for copyright infringement. Prevent potential legal disputes by checking which names have been registered with the state.
Choose a Registered Agent
A registered agent serves to receive legal and tax documents on your LLC’s behalf. Many LLC owners use a corporation filing service as their registered agent to ensure documents arrive while protecting privacy. Choosing that option allows you to use the address of the agent instead of your own, keeping your home out of the public record.
Submit Articles of Organization
To formally create your LLC as a legal entity, submit articles of organization with your Secretary of State office. The basic details should include your business name, information about your registered agent, and your address for filing.
Draft an Operating Agreement
An operating agreement outlines the ownership and management structure of your LLC as well as how profits and losses will be allocated among members. Though not required in all states, creating such an agreement can help clarify roles and responsibilities between members of an LLC.
Get Licenses, Permits, and EIN
Secure licenses, registrations, permits, and your Employer Identification Number. You’ll need all these if you want to run your company legally. Also, a licensed business inspires more confidence in prospective customers. Those credentials are often among the first things clients check before hiring a consulting firm.