When you start and register your virtual assistant LLC business, you’ll be on your way to working with premium clients. Such clients love highly organized people.
The fact that you took the initiative to register your business proves to them that you’re organized and focused on growing your business.
Therefore, the question you should be trying to answer is what an LLC is and how to register your LLC business. Let me help you answer these questions in detail.
What is an LLC Business?
An LLC is a Limited Liability Company. Virtual assistants love this type of business because it protects their assets in the following two ways:
It protects them against lawsuits
It helps them avoid double taxation
There are more benefits of an LLC with the main one being that it involves less paperwork as compared to a corporation.
In general, an LLC will make you appear credible while you protect yourself and your personal assets that sole proprietorships don’t enjoy. Now that you know this, let’s discuss the steps you should take to register your LLC business.
Step 1: Choose a State
It goes without saying that you have to choose a state where you’ll register your LLC business. As you may already know, different states have different laws that determine, for example, how you file your taxes.
The easiest thing is to register your LLC in the state where you live and plan to operate your business. If you’re thinking of moving states in a few months, compare your current state and the state where you’ll move.
Determine the one with the most friendly laws. Then take the next steps to actualize your business.
Step 2: Choose a Name for Your Virtual Assistant Business
If you still haven’t thought of your business name, it’s time to go down with your pen and paper and be creative. Write down at least three names that you love. Then search the names to determine their availability.
Begin your search with the most preferred name. Then if it’s not available, go ahead and search for your second most preferred name and so on.
Note that you have to follow these rules when naming your business:
Follow the naming guidelines in your state
You have to include the name limited liability company at the end of your name
Avoid using terms such as university, FBI, and treasury which are prohibited to prevent people from confusing your business for a government agency.
Once you have a name, go ahead and choose an agent.
Step 3: Select a Registered Agent
You’re required to select a registered agent to help with your business. Such an agent receives legal documents and other legal notices on behalf of your business.
Therefore, you need an agent in the state where you’ll be registering your business to make your life easy.
Step 4: File Your Formation Documents
By law, you have to file your articles of organization through the secretary of your state. To do this, you should follow these 3 steps:
Search for the articles of organization forms online in your state
Fill out the forms
File the articles
These are the documents that make your business official. Once you’re done, go ahead and create your agreement in the next step
Step 5: Create Your Operating Agreement
The agreement defines the members and owners of your LLC and their roles. If for example, you’re starting your business with your husband, this is where you define everyone’s roles.
Also, define the stake they own in the business if any to avoid confusion later.
Other things that you have to define in the agreement include voting rights, what could lead to a dissolution, and how you’d conduct membership changes in case the need arises in the future.
Step 6: Get Your EIN
An EIN is the Employer Identification Number. In short, it is a social security number that the state and anyone else may use to identify your business. The great thing is that you don’t have to pay for it.
You can register for it by yourself via the IRS website for free.
Step 7: Start Operating Your Business
Once you have your number, start operating your business as soon as possible. Use your registered name for marketing your business and finding clients.
Remember to file your taxes during tax season to avoid penalties and fines.
Learn How to Position Your LLC Business as an Expert
Once you’re all set, you need to know how to differentiate your business from others. Join the Royal VA Community now and learn how to position yourself as an expert. So that clients may want to work with you.