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Amazing Benefits of Making Yourself an LLC (Updated)

Max Smith

Reading Time: 6 minutes

Do you provide a service or sell a product? Why don’t you then turn your business into an LLC? There are undoubtedly many benefits of making yourself an LLC. But it only works if you know how to do it properly. 

So, let’s dig deep to discover the benefits of making an LLC yourself, the steps to create it, and some cool things to do with it. 

An LLC (Limited Liability Company) is a legal business entity. It offers the great advantage of limiting business liabilities to protect your personal assets. Plus, an LLC gives the amalgamated benefits of other types of business entities. 

You can be a single-member (sole proprietorship) or multi-member RLC. It gives your business a separate legal identity to face any lawsuit or deal with a third party.

Moreover, the fantastic benefits of LLC make it unique. Do you wonder what the benefits are? Then read our next section to find out!

5 Key Benefits of Making Yourself an LLC

Entrepreneurs get interested in forming an LLC for its benefits. And the list of LLC benefits i much more vast when you make it yourself. So, here are 5 benefits of creating an LLC yourself.

1. Saving Costs

The most significant benefit you get from forming an LLC by yourself is cost savings. When you hire legal professionals and consulting services to form an LLC, you must pay them.

However, if you handle the LLC formation process, you can avoid that cost. You can allocate those resources elsewhere such as investment, marketing campaigns, or staff employment.

2. Controlling the Process

If you create the LLC by yourself, you will have complete control over the formation process. You can customize all LLC aspects according to your requirements, interests, and long-term objectives.

You can also exercise control over the LLC’s structure and operations. It will help you align your plans and vision.

3. Simple Structure

For those who have small businesses, startups, or solo entrepreneurs, creating an LLC themselves is a wise choice. An LLC has a simple structure compared to complex corporate structures. Also, they have an extensive legal process.

On the other hand, there is simplicity, transparency, and accountability in an LLC for having a solo decision-maker.

4. Enjoying Timeliness

There is potential for timeliness in creating the LLC yourself. When you form the LLC independently, the process gets sped up by not depending on any third parties.

So, you enjoy full autonomy and can navigate through the process quickly. Undoubtedly, it saves time, which you can utilize elsewhere for efficient business operations.

5. Learning Experience

Establishing an LLC on your own is an invaluable learning experience. When you get involved, you handle the minute details of LLC formation. As a result, it broadens your knowledge base about legal and business issues. 

In the future, this experience will empower you to comprehend how to deal with business challenges.

Undoubtedly, there are many benefits to making yourself an LLC. However, you must first create an LLC to reap the benefits. Do you know the steps to creating an LLC by yourself? Find it out in the next section!

How to Create a LLC Yourself?

Creating an LLC yourself is not such a complex process. Here are the guidelines for starting an LLC yourself. 

  • Choose a Name

Selecting a unique and distinguishable name for your LLC is a must. Also, it needs to comply with your state regulations. Make sure to include the word “LLC” or something similar at the end.

  • Submit Articles of Organization

Prepare your Articles of Organization and submit them to your Secretary of State. So, put information like your LLC’s name & address, the registered agent’s name & address, and its purpose.

  • Designate a Registered Agent

Appoint a registered agent with a physical address. The agent can be a professional individual, an authorized company, or yourself. Undoubtedly, an agent will receive official documents on behalf of your LLC.

  • Create an Operating Agreement

Although making an operating agreement is not compulsory, it’s strongly advised to have one. In an operating agreement, you will outline the ownership structure, roles and duties, and other internal LLC operations.

  • Obtain an EIN

Get an Employer Identification Number (EIN) provided by the Internal Revenue Service (IRS). It’s important to acquire this for tax purposes, hiring staff, and opening bank accounts.

  • Ensure Licenses and Permits

Research the requirements at the federal, state, and local levels. Then, ensure that you get the necessary licenses and permits, depending on the nature and location of your business.

  • File Annual Reports and Taxes

It’s really essential to file the annual reports regularly and pay your taxes diligently. These will help you maintain compliance with state regulations. Also, all the financial records must be kept accurate.

  • Continue to Follow All Standards

Fulfil all the standards and continue to do so on an ongoing basis. If you stay informed about the state regulations, you will be able to know about any changes and act on time.

But what are some things you can do with an LLC?” Let’s get some ideas in the next section!

What Can I Do With An LLC?

If you own an LLC, the number of opportunities you can enjoy from it is endless. Here are 6 activities that you can do with an LLC.

  • The primary use of an LLC is to establish and operate a business.
  • You can use an LLC to hold and protect assets. LLC will shield them from potential liabilities. So, what does an LLC protect you from?
  • Few professionals, like doctors, lawyers, and accountants, use an LLC to maintain a practice license.
  • LLCs can benefit you in real estate investments. It can be a legal entity to hold, develop, and even manage rental property.
  • An LLC smooths the succession and transfer process if you own a family business.
  • In the case of joint ventures, LLCs can help you frame a partnership.

Besides the above things, you can do some amazing things with your LLC. Do you wonder what that could be? Find out in our next section!

Cool Things You Can Do with an LLC

If you are looking for some unique and creative, but also relaxed and fun things that you can do with an LLC, here are some ideas:

  • You can make independent films, documentaries, or web series with an LLC.
  • Start an event planning business using an LLC structure.
  • Using an LLC, you can collect and invest in fine arts and antique items.
  • Creating an LLC allows you to organize and lead travel adventures or eco-tourism expeditions.
  • Manage non-profit initiatives and help with fundraising efforts under an LLC.
  • An LLC helps deliver curated products by starting a subscription box business with an LLC.
  • Launching innovative tech products after establishing an LLC.
  • Run a food truck, mobile boutique, or pop-up store as an LLC.

Conclusion​

So, hopefully, you are now aware of the benefits of making yourself an LLC. Making an LLC by yourself will help you save money, learn the process, and get control over the whole process. 

However, be aware of the rules, processes, and steps. Also, make sure to explore the potential of doing exceptionally cool things with your LLC. Lastly, if you want a recap, don’t forget to check out the benefits and disadvantages of having an LLC

Key Points

  • You can create an LLC yourself instead of hiring a service provider. 
  • To create an LLC, you may need to follow some steps. For example, choosing a name, submitting Articles of Organization, designating a registered agent, creating an operating agreement, and more.
  • There are many benefits of making an LLC yourself. For example, saving costs, controlling the process, simple structure, enjoying timeliness, and learning experience.
  • There are numerous activities that an LLC can be used for. For example, operating a business, protecting assets, investing in real estate, business succession, and more. 
  • There are many cool things to do with an LLC. For example, web series, event planning, fine arts, travel adventures, non-profit initiatives, subscription boxes, tech product launches, food trucks, and more.

Frequently Asked Questions

Can you have an LLC without a business purpose?

Yes! You can have an LLC without any business purpose or activity. But you must pay the annual fees and taxes. You may also need to submit a purpose statement with the Article of Organization in a few states. But you really don’t need a business purpose to show; you must present its purpose to engage in any lawful activity. 

At what point do I need an LLC?

To secure your assets from business debts, you can create an LLC. If you feel that business debt puts your assets at stake, then form an LLC. Especially if you are a sole practitioner, you should get an LLC immediately.

What are the benefits of an LLC in California?

There are many benefits to having an LLC in California. Some major benefits are limited liability protection, tax advantages, flexible management, easy compliance, ownership flexibility, and more.

Max Smith - LLC Formation

He is a seasoned entrepreneur and legal expert at LLC Formation Hub. With a stellar track record in both business and law, Max simplifies the complexities of LLCs. His practical insights, featured on LLC Formation Hub, empower entrepreneurs across the USA. Max merges business finesse with legal acuity to guide businesses toward success.


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