If you are looking to start a company, it’s likely that you are looking to set up an LLC. In this post I’m going to show you how to do that quickly, easily, and affordably with MyCorporation.
On the fence about forming an LLC?
Read this post on becoming a CEO to learn more about the details and benefits of forming an LLC and if you have questions, just reach out!
Although there are many options for setting up an LLC, you can’t go wrong using MyCorporation.
They’ve been around for a long time and have set up of over a million businesses. They’re also affordable… I know because I shopped around.
We’ll go through the ENTIRE process step by step.
There are 8 steps/pages to complete and although that may seem like a lot, most of them only include basic information so don’t be intimidated by the list.
- Contact and Entity Info
- LLC Members
- Company Info
- Federal EIN
- Recommended Options
- Products and Services
- Order Summary
- Payment Information
Let’s Get Started
First things first, go to the MyCorporation homepage.
Once there select Limited Liability Company (LLC) from dropdown list #1
Then choose your state from dropdown #2
Click the orange Get Started button
You’ll then be prompted to pick your package.
I recommend the Deluxe package because it will get you all of the items that are essential to forming an LLC. For example, the standard package does not come with Registered Agent services which EVERY LLC must have.
With the Deluxe package you’ll be able to get everything done in one place, today.
Then click the blue Continue button
1. Contact and Entity Info
This first part is pretty self-explanatory.
Enter your contact info
Next you’ll need to choose your company name.
Have you thought about that yet?
If not it’s ok. Take your time and come up with a name you like.
MyCorporation will allow you to fill in three different company names in the case that your first or even second choice are already taken.
If you want to be sure your business name is available, go to Google and type this in the search bar:
Copy this: [Your State] + secretary of state business entity search
One of the first few websites that Google finds will take you to the search area for your state where you can find out if your name is already taken.
This helped me a lot when I formed my LLC. I don’t like ambiguity very much so the “choose three options and we’ll hope to get you the best one” approach was something I avoided.
You want your name to represent your company. Try to keep it short if you can. Long names like “Whistler and Buchanan Law Offices of Nevada, LLC” is too long and hard to remember.
“Good Guy Law Offices, LLC” would be better, at least in length.
Next, you’ll need to enter your BUSINESS address.
In this post on setting up your company you can find more information about business addresses, what type you should choose, and the options you have.
I recommend using The Traveling Mailbox for privacy purposes, affordability, and flexibility which is talked about more in the post mentioned above.
Once you’ve filled out your business address information, hit the Continue button on the bottom right.
2. LLC Members
Are you a single-member LLC or do you have partners?
In this section you’ll name each member of the LLC.
The voting rights (power) in multi-member LLCs is determined in the operating agreement, not by who is the CEO as shown in the below form so don’t worry too much about who is named CEO.
If you’re worried about distribution of power, that’s covered in the next section.
Fill out the member information
Use the Add Another Member button at the bottom if needed
Then, hit Continue
3. Company Info
I want to draw your attention to the circled part in the picture below.
This IS NOT money you are about to spend. This is nothing more than an example of funds that the member may or may not have contributed to the business.
What’s most important is to make sure that the percentage next to the circle (Percent Interest in the LLC) shows the correct amount. In the example below it shows 100%.
This is the amount of ownership, not necessarily power, that is given to that member.
This is a single-member LLC so we’re good with 100%.
Ways In Which Power Can Be Distributed
There are two common ways that voting rights (power) can be distributed.
Each person gets 1 vote regardless of ownership percentage.
For example, Ronni contributes $50 to the company and Shannon contributes $5,000. With equal ownership, both parties get one vote.
Each person has power determined by their ownership percentage/contribution.
For example, if James has 40% and John has 11%, between the two of them they have the power to swing voting decisions… even if 15 other people split the other 49%.
Power is determined in the operating agreement which MyCorporation will help you build if you pick that option.
Lastly is choosing the termination date. Unless you know if and when you’d like the company to terminate, select the Perpetual option for LLC Duration or Termination Date. This just means the LLC will be “ongoing.”
Then, hit Continue
4. Federal EIN
A Federal EIN is nothing more than the social security number for your business. The process takes about 10 minutes to complete yourself and best of all, it’s FREE.
Dealing with the government usually sucks… but this is not one of those times.
I recommend getting your Federal EIN yourself.
I’ve gone and found the exact IRS page you’ll need to go to get your Federal EIN.
If you REALLY want to avoid the IRS website, you can have MyCorporation get your EIN for you. No big deal.
Also, we are not filing an S-Corporation in this post, so select No Thank You on the second half.
Once you’ve made your choice, Click Continue
5. Recommended Options
This section is the largest in the whole process so stick this one out! It’s downhill after this.
Depending on your state, that circled number (state filing fee) is going to change. Every state has a different fee.
There are a two parts that will have prices that differ from state to state. I’ll be sure to point those out when they pop up.
Below is one of these parts:
In Nevada, it’s $75 as of April, 2017.
Usually, when it comes to filing, just have someone else do it. I recommend having MyCorporation file the Initial Report/List of Offers, Directors, and Resident Agent.
Customized Operation Agreement
In this LLC formation example of this post, we are setting up a single-member LLC so customizing an operating agreement may not be a real benefit.
If you had other members involved it might definitely be worth customizing your operating agreement to establish voting rights as discussed earlier, but not here.
Below are my recommended selections:
MyCorpVault is a storage service for your files and records.
In my opinion, you’d be better off storing your own files on something like Dropbox or Google.
It’s probably cheaper.
To the point of writing this post, I haven’t had a data storage issues with Dropbox so it’s currently free. Why spend the money if you don’t have to?
Business License Compliance Package
This is for those businesses that may have to maintain a few different licenses in order to operate.
Contractors and others probably fall into this category. If you think you’ll have difficulty keeping your licenses in order, this would be a great benefit.
We are forming a simple company in this post example so we likely don’t need to worry about it.
Here’s an example of the type of simple set up I’m talking about: I set up my first company just to hold real estate and provide liability coverage. I didn’t need any special licenses so the compliance package doesn’t really make sense.
We will not have any employees so we don’t need to worry about State Unemployment Insurance.
State Tax Withholding
If you had some very large revenues, and you were in a state with State Income Tax (not all have that), then it might be beneficial to get help with your withholding so that you aren’t hit with a huge tax bill at the end of the year.
Does your state have state tax?
How much revenue and expenses to you expect to have?
This service protects your business from lapsing on the important annual filings.
In Nevada, there are only two annual tasks that need to take place:
- File the annual list of owners
- Pay the annual business registration filing
MyCorporation will actually contact you to renew your business license as well as file your members report every year so this service, in my opinion, isn’t worth it.
In the end, whatever allows you to run your LLC smoothly is what matters.
If that means no stress regarding deadlines, so be it! 🙂
MaintainMyBiz is a service that will provide up to 4 additional filings for LLC with the first 12 months of your business formation. Once again, depending on your business’s needs, you may or may not need this.
In the example for this post we are using a single-member, simple LLC and we likely won’t need all these extra filings.
Congratulations if you are going to be a BOSS right off the bat?
If you’re going to be paying employees or even yourself, it might be a good idea to use the MyCorporation Payroll service to avoid potential tax trouble.
In my opinion, it would be better to use Google to find this info. I’m personally in no place to pay myself ANYTHING, so I’m not worried about it yet. But Google (and blog posts!) have usually solved all my problems.
Are you going to have an office with real customers?!
Do you typically like to frame your accomplishments?
If so, splurge a little bit on the fancy items that will show you have a legit company.
I left them unchecked here to be mindful of the “money-conscious” business starter. You don’t NEED these items however there is nothing wrong with picking them up.
I mean, you’re right around the corner from being a business owner! Why not have a little something to show for it right away?
Hit Continue once you decide on these.
6. Products and Services
This is basically a summary page. Make sure that all of the products and services that you’ve selected in the previous sections are checked.
In the example photo below, the circled $425 is how much it costs for the initial government filing fees in Nevada. This will vary from state to state.
If you’ve changed your mind on any selections from the previous steps, you can make your changes here.
If you have no changes to make, Click Continue
7. Order Summary
In this section all that’s left to do is verify your information.
Give your info one last look before you move on and then hit Continue.
8. Payment Information
You are one click away from becoming a f*@(ing CEO!
Remember that once you go through with this setup that you are never alone.
MyCorporation has an entire support staff that will help you along the way with any issues that may come up. Take advantage of that and don’t let this hold you back.
“Success is found on the other side of fear.” – Somebody
Getting help is easy.
I’ve circled their phone number at the top of the menu if you need it.
If you don’t like phone calls they have a live chat option on the website. To get to live chat, click on the Get Help Now box on the bottom right of the homepage.
Fill out your payment information to complete the final step.
Final Step: Click Submit Order
YOU HAVE BECOME A CEO
You’ve done it! You officially own your own company.
Don’t like the CEO title? Call yourself VP of operations, Executive VP of Human Resources, Chairman of the Board.
Call yourself anything, you know why? Because you LITERALLY OWN THE COMPANY.
You might be thinking “Now what?”
Tasks to Complete After Becoming a CEO/Owner/Badass
Go buy 5 suits and call 10 friends to brag (just kidding).
Seriously though, you’ve just done a really cool thing so go ahead and share it!
Create/Update Social Media Accounts
For most companies, marketing is key. If you aren’t aware yet, social media is taking over the world SO, create social media accounts for your business and/or update your personal social media pages.
You might be thinking you don’t need to set up these accounts because you don’t think you’ll ever use them.
Rethink that. Here’s a hypothetical.
Somebody else makes social media account with your company name and then masquerades around on social media pretending to be you. Would you want that? Probably not.
It’s a good idea to make the accounts even if YOU won’t be using them.
On LinkedIn, update your personal information to Owner.
Create a Facebook page and promote your company there. Request friends everyday and share with people how your company can help them.
All you have to do now, is work on building the business.
Glad you’ve joined the club!
Don’t forget to reach out if you have any questions.