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To get started, you’ll need to choose an LLC name. This will include a word or phrase that describes your business like “Teddy Bear Company”. Then, use the LegalZoom search tool for the state of formation and fill out the appropriate form with your personal information.
LegalZoom is an online legal service that may help you register an LLC (limited liability corporation). While you may register an LLC on your own using the appropriate state website, many business owners choose to hire a professional, such as LegalZoom, to help them through the process.
During the LLC registration process with LegalZoom, you may come across questions and additional items for your company that you aren’t sure you need. We’ll explain what LegalZoom offers, including an open discussion of the process and whether or not you should pay for it.
It may be beneficial to open the LegalZoom LLC registration page and follow along before beginning to read the material below:
1. Pick an LLC name and double-check that it’s available.
The first step in forming an LLC with LegalZoom is to choose a company name:
You’ll be able to proceed with your LLC registration if the name is accessible. If it’s not available, you’ll have to come up with another company name.
When it comes to naming your company, there are a few things to keep in mind:
- Be distinct: The name of your LLC should not be confusingly similar to that of another LLC in your state.
- Don’t confuse consumers: Don’t give your LLC a name that sounds similar to a competitor’s in the hopes of stealing their customers.
- Restricted phrases, such as “bank” or “insurance,” should not be used in your LLC name. For a list of banned terms, go to your Secretary of State’s website.
Tip: If you haven’t decided on a company name and want to make sure it’s available, LegalZoom offers a free service that will contact your state government to check availability. A LegalZoom representative will contact you when they’ve reached their decision (which takes around 15 minutes).
2. Define the Purpose of Your Limited Liability Company
When you get the good news that your business name is available, you’ll be asked a few questions about when you want to establish your company:
Is this your first time forming a limited liability company (LLC):
What business you’re in, and what industry you’re in:
These questions are asked by LegalZoom in order to offer you more relevant information and services throughout the legal procedure for your specific company.
3. State whether or not you plan to hire employees.
This question allows LegalZoom to learn more about your company and offer you extra services by answering it. It has no bearing on your LLC.
4. Find an agent to act as your registered agent.
The second issue is who should you choose as your Registered Agent (RA)? A registered agent is a person who receives legal and state paperwork on behalf of your company.
You have the option of becoming your own RA. If you do so, you or an employee must be present to receive a legal document such as a summons or subpoena Monday through Friday from 8 a.m. to 5 p.m. If you are not accessible during this period, your LLC status with the state may be revoked.
Consider hiring LegalZoom as your Registered Agent if you won’t be accessible or if you’d want them to handle it for you. Having an outside RA offers many company owners peace of mind that they will not overlook any important business papers. LegalZoom charges $249 per year to serve as your Registered Agent.
5. Select Documents for a Limited Liability Company (LLC)
The Working Arrangements, employment identification number (EIN), and company licenses are all included in the “Essential Documents” section of the LegalZoom LLC sign-up procedure.
Here’s a breakdown of the “Essential Documents” offered by LegalZoom:
Operating Agreement
An operational agreement explains how organizations operate and aids in the avoidance or resolution of commercial problems. While most states do not need LLCs to legally file operating agreements, many do require you to have one on file with your company.
We suggest establishing an operating agreement for your LLC to clarify your management structure and reduce confusion, regardless of what your state needs. When forming an LLC, you may buy an operating agreement for $99 from LegalZoom.
If you subsequently determine that LegalZoom can assist you with your operating agreement, you may easily buy the service via your online account.
Employer Identification Number
The EIN (Employer Identification Number) is a number that the Internal Revenue Service (IRS) uses to identify your company. The IRS website allows you to request one for free. You may, however, hire LegalZoom to complete it for you if you choose to avoid that stage. Obtaining an EIN is a legal requirement when beginning a company; without it, you would be unable to submit taxes.
Obtain a business license
LegalZoom can study the requirements for you if you don’t know what sort of license or permit your company needs or how to apply for them.
6. Select Other Business Services
Before deciding on your LLC price package, take a look at LegalZoom’s other business services, such as Employer with Foresight and Total Adherence. You won’t see the Smart Employer services if you specified you won’t have workers early in the registration procedure.
Smart Employer
The Smart Employer is a legal bundle that includes legal advice, tax expert consultations, and an infinite number of legal forms. The Smart Employer legal bundle costs $39.99 per month after a 10-day free trial.
This bundle may be perfect for you if you feel you may have legal questions for an attorney or if you will need to prepare bespoke legal paperwork. The legal forms might be used for employment, client, or vendor contracts.
Total Compliance
The Total Compliance package protects you from missing your LLC’s renewal dates. The state may charge you a late fee if you miss a deadline. You may lose your LLC status with the state if you miss your LLC renewal due by many months.
7. Choose an LLC Package and Make a Payment
The cost of LegalZoom LLC varies based on how quickly you need your papers filed and how much your statistics filing fee is. In Kentucky, the filing cost is $40, whereas, in Massachusetts, it is $500.
If you already have clients and a company, you’ll probably want an accelerated filing to preserve your personal assets as quickly as feasible. Choose the Economy option if you haven’t launched your company yet and can wait for your filing.
8. Provide any remaining information
After you’ve chosen your price plan, you’ll need to supply the last information needed to form your LLC. The information needed varies by state, but it’s often your personal and business information. LegalZoom will also want you to submit a payment method.
Following your selection of a package, LegalZoom will ask for the following information:
- Business address: Include the address of your major business location. LegalZoom will provide a list of any state-specific requirements.
- Whether you’re a licensed professional: You’ll need to create a Professional LLC if you’re a licensed professional in a discipline like medical, law, accountancy, or architecture.
- Conclusion of your fiscal year: Set a date for the end of your fiscal year. This is usually the 31st of December. However, if a significant amount of your company’s income is generated during a given time of year, a different date may be more suitable.
- Choose a dissolution date if you have a short-term company, such as one that was founded for a single occasion. A dissolution date is not required if your LLC is otherwise in good standing.
- Names of business owners: List the names of each of your company’s owners. Enter simply your name if it’s just you.
- Interests in ownership: Indicate whether ownership is shown as a percentage or as a number of units. Then, for each owner’s interest, pick the form of owner permission that is necessary for ownership transfer.
- Indicate whether your LLC will be member-managed, managed by a group of owners, or managed by third-party management. Who may create bank accounts, make checks, sign contracts, and otherwise bind the LLC will be determined by this.
- Information regarding your LLC’s EIN: If LegalZoom is getting an EIN for your LLC, share details about your company. If you decide to apply for an EIN on your own, you’ll need to give this information as part of the application process.
- Provide the IRS with the name, phone number, and Social Security number of one of the LLC’s owners, managers, or president.
After you’ve finished filling out this form, click Submit, and LegalZoom will begin creating your documents. It will then submit it to your Secretary of State’s office after it has been prepared. LegalZoom will send you an email once your application has been accepted. Then, after you’ve received the notice, your LLC is formed, and you’re good to go!
The Benefits and Drawbacks of Using LegalZoom to Form an LLC
LegalZoom is a great tool for incorporating a limited liability company, but it isn’t the ideal option for every small business. Despite the fact that LegalZoom may save you time and money, the procedure can be complex, and it cannot replace the services of an experienced attorney.
The Benefits
- If you choose LegalZoom’s add-on services, the website may assist you with anything from your first file to future tax, legal, and compliance issues.
- Saves time: LegalZoom saves you time by handling the paperwork for creating an LLC and offering extra support services, allowing you to focus on growing your business.
- Less costly than employing an attorney: Attorneys often charge $150 to $500 per hour or more. You and your company may save money by using LegalZoom to create your LLC and manage other legal problems.
- Additional help and essential reminders are provided: Add-on services from LegalZoom may assist you to remember critical filing deadlines and answering concerns about how to run your firm.
The Drawbacks
- Limited expertise: Nothing compares to the knowledge and experience of an experienced business attorney.
- Forming a LegalZoom LLC costs $79 to $359 plus filing fees, which is more costly than some other providers. Similar services are available for filing costs alone (as part of a trial) or for $49 plus filing fees on other websites.
- Longer turnaround times: Despite the fact that LegalZoom’s Express Gold plan promises a turnaround time of seven to ten business days, many customers complain about lengthy processing periods and sluggish service.
- LegalZoom’s add-ons are useful, but they might be perplexing if you’re not sure which services you’ll need to incorporate an LLC. Furthermore, if you choose add-on services like a registered agent or tax advice, the price structure might be perplexing.
- Consumer service is limited, according to customer reports, and might be unhelpful or difficult to contact.
Conclusion
To form an LLC, you must first learn about state-specific laws, tax duties, and other complex problems like management structure and licensing. You may register your company on your own, but it is a time-consuming and difficult procedure. For $79 to $359 plus filing costs, you may incorporate a LegalZoom LLC in just 15 minutes and save money on prospective legal bills.
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LegalZoom is a website that allows you to set up an LLC with just a few clicks. LegalZoom offers a free 30-day trial and has reviews from customers who have used the service. Reference: legal zoom reviews.
Frequently Asked Questions
Can you use LegalZoom to start an LLC?
A: LegalZoom is a legal company that offers a range of services to start, run and grow your business. Services include doing everything from forming LLCs to incorporating you as an individual.
What is the fastest way to set up an LLC?
A: In the United States, you will need to file articles of organization with your county Secretary of State. Once that process is completed, it can take anywhere from two weeks to a few months for the paperwork to be approved and published on a government website.
