Form an LLC in Plant City, Florida

The cheapest way to form an LLC in Plant City

The decision to form an LLC or incorporate can help you protect your personal assets from debts and obligations of your business. Unfortunately, many small business owners avoid taking this step because they assume it is too expensive. For a few hundred dollars, these small business owners could form an LLC and gain valuable protection

Incorporating or forming a limited liability company in Plant City is not necessarily expensive. There are many entities to choose from, as well as states, each with their own costs. You can also choose to work with an attorney to incorporate your business, which is typically the most costly option. If you want to save money, you can do your own incorporation, but this can be tricky because even simple paperwork mistakes can cost you more later. For many small business owners, the best option is using a corporate service company, which is an affordable option to make sure your paperwork is correct and filed promptly with the state.

The following are expected costs if you are ready to incorporate.

Filing Fees

A filing fee is necessary to create an LLC or corporation in Plant City Florida. The exact fee will depend on the state in which you incorporate, but it usually ranges between $50 and $350. The cheapest option is forming a Delaware LLC, as the state has the lowest filing fee in the United States. Just remember that cost is not your only consideration, and Delaware incorporation may not be in your best interest.  <a href=http://llcflorida.org/form-an-llc-in-plant-city-florida/“>Forming an LLC</a> is almost always the best way to go for a small business.

Franchise Taxes

This fee will be ongoing and paid every year. Most small businesses pay between $800 and $1,000, and there is usually a minimum and maximum amount of taxes you will pay depending on the entity type you choose and the number of shares you issue. For example, the franchise tax in Delaware is a minimum of $350 but may be as high as $180,000 for large corporations. Delaware has the lowest franchise taxes in the country but forming an Limited Liability Company</a> in Delaware is not for your average business by any means.

Other Costs

You should also take into account other fees that depend on the type of business you operate. For example, you may incur costs to obtain necessary business licenses or set up a business bank account in Plant City Florida.

If you are interested in incorporating or forming an LLC in in Plant City Florida with as little cost as possible, start by considering the state in which you will incorporate. You do not need to operate in the state you choose, but it may be more affordable to choose your home state if it is the only state in which you operate. If you are thinking about another state, look at their tax rate and compare it to your own.

It can also help to go over your options with a corporate services company or attorney to choose the right business structure. This decision should be made not only considering incorporation costs but also tax advantages, ongoing maintenance, formalities and ownership structure.

Most business owners use credit for business expenses, including buying equipment and inventory. Unfortunately, most are using their personal credit cards and loans. While this largely unavoidable when you’re just starting out, it’s definitely risky. Personally guaranteeing business loans and credit accounts means you are completely liable for the debts. If your business is sued or you cannot pay back the debts, it will be you that is responsible — not the business.

While it’s possible to establish business credit for a sole proprietorship, it’s much harder to do because your business is not a separate entity. The easiest way to get started on establishing credit for your business is forming a limited liability company or LLC in Plant City Florida. Forming an LLC protects you and other owners from being personally liable for business debt and it establishes a clear separation between the owners and the business — one of the first steps to establishing business credit.

Steps to Establish Business Credit

These are the basic steps you will need to follow to establish a business credit history in the name of your business.

1. Form an LLC. The first step is forming your LLC to create a legal entity that is separate from the owners.

2. Get a federal tax identification number. Next, request an EIN, which works like a Social Security number for your LLC. You will need an EIN for federal tax filings and to open a bank account for your LLC.

3. Open a bank account. You will also need to open a business bank account in the name of your LLC. Make sure you pay business expenses from this account, not your personal account, or you risk “piercing the corporate veil,” which means it may be ruled that your LLC is not managed as separate from your personal assets.

4. Get a business phone number. Your business will need its own phone number in the LLC’s name.

5. Open a credit file. You will need to open a credit file with the three main credit reporting agencies: TransUnion, Equifax, and Experian.

6. Obtain business credit cards. The fastest and easiest way to start establishing credit in your LLC’s name is applying for business credit cards that report to the agencies above. You will need to provide your EIN to apply. Examples of business credit cards include the American Express SimplyCash and the Chase Ink Cash cards.

7. Establish a line of credit. It’s also important to establish credit lines with vendors and suppliers that you work with. Just as with personal credit, it’s important to have a mix of credit types on your business credit file. Ask your vendors to report your payment history to the credit bureaus.

8. Pay on time. Finally, make sure your bills are paid on time as late payments will hurt your LLC’s credit.

Establishing good credit history as soon as possible is important for several reasons. It positions you to get more favorable payment terms with new vendors and it helps you secure better terms when you need business loans. The first step is forming an LLC. You can learn more about forming a limited liability company by consulting with an attorney or business services company.

<a href=”http://llcflorida.org/form-an-llc-in-plant-city-florida/“>Forming an LLC</a> is almost always the best way to go for a small business.

< href=”http://llcflorida.org/form-an-llc-in-plant-city-florida/“>forming a limited liability company</a>