A lot of people dream about becoming an entrepreneur. Today, that dream is easier to achieve than ever, as is evident by the growing number of business registrations, as reported by the United States Census Bureau.<\/p>\n\n\n\n
However, there are a lot of factors to consider when starting a business. You have to consider things like the type of business entity, tax classification, and legal compliance requirements of your business. More importantly, you would want to protect yourself\u2014the business owner\u2014from liability risks.<\/p>\n\n\n\n
In this article, we dive deeper into limited liability companies (LLCs) and see how public benefit corporations (PBCs) like ZenBusiness<\/a> can help make the processes easier and faster for business owners.<\/p>\n\n\n\n \nZenBusiness is a public benefit corporation that can help business owners form an LLC and protect themselves against business liabilities.<\/p>\nLearn more about ZenBusiness.<\/a>\n<\/div>\n To limit your legal liability as a startup owner, you are encouraged to form an LLC\u2014short for limited liability company. An LLC gives you legal status as a startup owner, and you can form one with one or multiple parties. It also gives you the same benefits as corporations without the associated cost and lengthy procedures.<\/p>\n\n\n\n The bonus: You can form an LLC for a startup of any size\u2014whether sole proprietorships or partnerships. In fact, there are practically no limits to the number of people who can be registered in an LLC.<\/p>\n\n\n\n Applying for Articles of Organization<\/a> is considered one of the most critical steps of registering your startup. Before filling out the form, ensure that you have the following ready.<\/p>\n\n\n\n You may also need to provide supplemental documents to explain each of the requirements mentioned above.<\/p>\n\n\n\n Each state has a slightly different way of LLC applications. However, the process often boils down to the following steps:<\/p>\n\n\n\n Your startup name is an essential factor because every entity needs an identity\u2014something to be known by. Although every state has a different requirement for naming businesses, you are usually required to choose a name not already registered with any other LLC in the state.<\/p>\n\n\n\n A registered agent is an individual or legal entity that acts between your startup and the State. They operate on your behalf and receive documents such as government correspondence, legal documents, notices of lawsuits, and tax forms. You can also be your own registered agent if you have a registered physical address (PO Box not allowed).<\/p>\n\n\n\n That said, you can also have a third party such as ZenBusiness act as your registered agent<\/a>. Choosing this route will save you a lot of stress, give you privacy, and ensure that you are compliant.<\/p>\n\n\n\n The certificate of formation is known by many names depending on the state where the LLC is filed. But regardless of the term, it is the document containing all the details of your startup, such as the number of members, address, contact, management structure, and more.<\/p>\n\n\n\n Although not required in every state, getting an operating agreement can save you a lot of stress and avoid disagreements, especially for partnership-based LLCs. This vital document highlights the responsibility of each member, succession plan, voting power, and liability against personal assets. It is even simpler with an already-made template, like this operating agreement template created by ZenBusiness<\/a>.<\/p>\n\n\n\n An EIN stands for Employer’s Identification Number<\/a> and the business equivalence of a Personal Security Number. If your startup has at least two partners or employees, you must have an EIN. After you have officially formed your LLC, you are encouraged to register your startup with the federal government by applying for an EIN with the IRS.<\/p>\n\n\n\n Before setting up your startup either as a sole proprietor or partnership, it is essential to limit your risks as much as possible. And one way to do this is to leverage every opportunity within the law to protect yourself against potential business downsides by registering your startup as an LLC.<\/p>\n\n\n\n The process can be overwhelming, but with the help of experienced professionals, it will most likely be less stressful and error-free. To that effect, ZenBusiness<\/a> has positioned itself as a leader in helping startups grow by doing all the tedious backend work so you can focus on the front end. So start your journey with ZenBusiness by answering a few simple questions<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"A lot of people dream about becoming an entrepreneur. Today, that dream is easier to achieve than ever, as is evident by the growing number of business registrations, as reported by the United States Census Bureau. However, there are a lot of factors to consider when starting a business. You have to consider things like…","protected":false},"author":142,"featured_media":106684,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[28859],"tags":[],"class_list":{"0":"post-106682","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-partner-spotlight"},"acf":{"post_sub_title":"","sprint_id":"","query_class":"","school_sft":"","parent_sft":"","school_privacy_policy":"","has_review":null,"is_sponser_post":["yes"],"is_guest_post":""},"yoast_head":"\n
\n\n\n\nWhat Is an LLC?<\/h2>\n\n\n\n
What Are the Benefits of an LLC?<\/h3>\n\n\n\n
Requirements for an LLC<\/h3>\n\n\n\n
5 Steps to Limiting Your Liability with an LLC<\/h2>\n\n\n\n
Step 1. Choose a Company Name<\/h3>\n\n\n\n
Step 2. Appoint a Registered Agent<\/h3>\n\n\n\n
Step 3. File Certification of Formation<\/h3>\n\n\n\n
Step 4. Get an Operating Agreement<\/h3>\n\n\n\n
Step 5. Get an EIN<\/h3>\n\n\n\n
Protect Your Personal Assets and Reduce Risk with an LLC<\/h2>\n\n\n\n