I have spent the last three weeks starting my own business, Art of Progress LLP. Most of this time has been spent doing market research, with a few breaks in between to keep the paperwork moving along. Because the paper-work is such a pain, I thought I'd provide a quick guide to starting your own limited liability company (LLC) in Georgia, since I've already been through most of the process...
Step one - Make a Decision
Decide on what business to start, make sure you are picking the right structure, and do some research to make sure you can actually make money at what you're doing. More on this in a separate blog; if I feel like writing it.
Now on to the boring stuff.
Step 2 - Give $100 to the Georgia Secretary of State
Go to the Georgia Secretary of State web site, and fill in the appropriate Business Filing.
This process was a breeze. After I completed the forms, I was "official" in only about two hours!
Step 3 - Get a Tax ID
Now that you have formed an LLC, you should get a Tax ID. This way you don't have to give out your social security number to banks, creditors, and so forth which limits the damage that can be done to you personally in the case of identity theft, among other things. To get a tax id, all you have to do is fill out IRS Form SS-4. You can do it online or call 1-866-816-2065. Once that's done, you get your Tax ID immediately.
Filling in the form for an LLC can be a little tricky because on line 8a, type of entity, there is no option for LLC. For this, select "Other" and put in "Disregarded Entity" in the blank.
That is the only line that I can remember tricking me up.
Step 4 - Cover Your Ass
If you are starting the business all by yourself - meaning you have no partners and no employees - there is a chance that if you get sued, your LLC status won't be worth the $100 you paid for it. One way to protect yourself is to create an Operating Agreement. It simply shows that you mean business and aren't trying to dupe the government into protecting you more than you deserve. I paid $15 to have a generic one drawn up on some website. Sorry, I don't remember the URL - but I'm sure you can Google for it like I did. Just print it up, sign it, and file it away somewhere safe.
Step 5 - There is no Step 5
That's it! You now own an LLC and have protected yourself against liability.
Disclaimer: I have absolutely no qualifications to give advice on the material below. However, like most people, I'm not going to let that stop me. If you have any questions or doubts (and you should) about what you are doing, you should ask an attorney or accountant as the circumstances dictate.
Step one - Make a Decision
Decide on what business to start, make sure you are picking the right structure, and do some research to make sure you can actually make money at what you're doing. More on this in a separate blog; if I feel like writing it.
Now on to the boring stuff.
Step 2 - Give $100 to the Georgia Secretary of State
Go to the Georgia Secretary of State web site, and fill in the appropriate Business Filing.
This process was a breeze. After I completed the forms, I was "official" in only about two hours!
Step 3 - Get a Tax ID
Now that you have formed an LLC, you should get a Tax ID. This way you don't have to give out your social security number to banks, creditors, and so forth which limits the damage that can be done to you personally in the case of identity theft, among other things. To get a tax id, all you have to do is fill out IRS Form SS-4. You can do it online or call 1-866-816-2065. Once that's done, you get your Tax ID immediately.
Filling in the form for an LLC can be a little tricky because on line 8a, type of entity, there is no option for LLC. For this, select "Other" and put in "Disregarded Entity" in the blank.
That is the only line that I can remember tricking me up.
Step 4 - Cover Your Ass
If you are starting the business all by yourself - meaning you have no partners and no employees - there is a chance that if you get sued, your LLC status won't be worth the $100 you paid for it. One way to protect yourself is to create an Operating Agreement. It simply shows that you mean business and aren't trying to dupe the government into protecting you more than you deserve. I paid $15 to have a generic one drawn up on some website. Sorry, I don't remember the URL - but I'm sure you can Google for it like I did. Just print it up, sign it, and file it away somewhere safe.
Step 5 - There is no Step 5
That's it! You now own an LLC and have protected yourself against liability.
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