When should I have an LLC?
- IMHO anytime you are doing any business transaction. The money you spent in setting up the entity is totally worth the liability protection it provides.
I don't have tens of thousands of dollars to hire a lawyer.
- There are several online services that will do it for fairly cheap.
- I can't say about every state, but if you are creating an LLC in Texas, it is a very simple online form that you fill out. It takes 5 min and you don't need a lawyer for that.
What about formation documents?
- You can find fairly simple templates on legal zoom and other websites.
OK, what else should I be doing after I set up the LLC?
Here are some key tasks:
- Get an EIN - https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
- Set up a bank account
- Get a credit card - https://www.creditcards.com/business/
- Get up financial books. Unless you are going to have a large transaction volume, I would recommend that you start with a simple Google sheet to track incoming and outgoing expenses.
- And make a note when franchise taxes are due.
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