Get everything you need to create and launch your LLC. Skip the paperwork and legal headache. Pricing plans may differ in states outside of Florida and California.*
A limited liability company (LLC) is a type of business entity that protects its owner(s) personal assets. This means that if a lawsuit is filed against the company, the owner(s) cannot be held personally responsible.
Like a sole proprietorship, an LLC offers pass-through taxation, meaning that the LLC does not pay taxes on its income. Instead, the business owner(s) pay taxes on their share of the company’s profits.
But unlike a sole proprietorship, an LLC can choose to be taxed like a corporation. Single-member LLCs and multi-member LLCs reserve the right to be taxed as an S Corporation, C Corporation, or a sole proprietorship.
The main cost of forming an LLC is the state filing fee, which ranges from $40 to $500. Other costs include:
LLC formation services like Nearside Sprout eliminate the complicated paperwork so you can easily start your LLC. Our plans start at just $39 a year for a personalized experience walking you through the whole LLC creation process.
LLC filing requires several important steps, including picking a name for your business, selecting a registered agent, properly filing articles of organization with your state, and creating an LLC operating agreement, all while staying on top of local, state, and federal business requirements to remain in good standing.
The main difference is personal liability protection. An LLC helps protect owners from being personally liable for business liabilities or debts. A sole proprietorship does not.
The main difference between an LLC and a corporation is that an LLC is owned by one or more individuals. A corporation, on the other hand, is owned by its shareholders.
Like corporations, LLCs offer limited liability protection. However, LLCs are easier for new businesses to establish because they can be set up by a single individual. Corporations generally must have a board of directors, officers and regular board meetings.
Creating an LLC comes with some necessary start-up fees, including the state filing fee. You can view a full breakdown of LLC fees by state in our table here.
As a business structure, LLCs offer a number of advantages over a sole proprietorship. Namely, they provide:
After you file all of the necessary paperwork, the processing time varies based on your state. On average, it takes 30 to 40 days to be approved by the state to form your LLC.
To form an LLC, you must file Articles of Organization with the secretary of state’s office in the state where you plan to do business.
First, however, you need to check whether your business name has already been registered. You may also consider registering your business name as its own trademark.
After checking that your business name is free and filing Articles of Organization, there are a handful of other tasks to complete, including:
LLC formation services like Nearside Sprout will walk you through the entire process, so you avoid all the complicated paperwork.
Only LLCs and corporations. You don't get personal liability protection with sole proprietorships, DBA’s, or non-registered businesses.
*Pricing plans may differ in states other than California and Florida