Registering an LLC

Last week I took the plunge and registered an LLC – and it felt great. The entire process was extremely simple, and took less than 20 minutes once I actually decided on a name. That was, in fact, the hardest part of all. I did use one of the online services, probably out of laziness. It sounded simple enough to handle everything myself, and I would’ve saved about $100, but that just didn’t seem worth it to me. As part of the package, the company handled all the paperwork and overnighted everything to me. I also got a neat little thing so I can put an official GL3 Media seal on documents. Don’t know when I’ll ever use that, but it sure seemed cool. I also got a registered agent for a year included – something I would have had to pay for separately anyway, at the cost of about $100-$150. So in that sense, I didn’t actually waste any money.

Here’s a quick rundown on the steps to register an LLC – if you’re considering making that next step.

  1. Pick a name. I suggest running a contest to help with this – it’s harder than you may think.
  2. Find an online service – There are many, and the prices vary wildly. Always check to see if the state filing fee is included in their price.
  3. Decide which state to register in. I chose Delaware, mainly due to privacy and tax advantages.
  4. Fill out the form online ( 10 minutes ) and pay the bill. My total came to $255, including the state filing fee.
  5. Request an EIN ( Employer ID Number ). This will replace your SSN for all business transactions, so you get to stop giving that out all over the place. I hate giving out my SSN when I sign up with affiliate networks.

After that it’s up to you. I of course followed up with registering my company domain, and putting up a placeholder until I build the site properly. A business checking account and business cards should also be on your checklist of things to do. I’m still working on those two – trying to find a free business checking account as we speak.

Following up on my contest, no one *technically* won. However, the name I chose was GL3 Media, which was based on GL Media, which Adam Ferguson suggested. I wanted the .com domain to go with my company name, and glmedia.com wasn’t available. So I went and changed it up a bit, and was able to secure gl3media.com. However, I’m still going to name Adam the winner of the contest, and give him the link I said I would. So, Adam, just let me know what link / anchor text you’d like and I’ll set it up for you.

19 Comments

  1. Kevin said

    April 23 2007 @ 3:10 am

    congrats Leroy. i got all this setup back home in the uk about 4 or 5 years ago. The bank had to come to my house and inspect my working area etc but it was great. I got to skip every other sucker in the bank queue and go to the business area which was always quiet 🙂

    best of luck. im sure this will be the first step in the next part of your web journey (cheesy but you know what i mean!) 😉

  2. Leroy Brown said

    April 23 2007 @ 7:30 am

    Damn they must be a lot more strict in the UK than here in the states – I don’t think anyone comes out to inspect your work area here unless your audited.

    I am looking forward to skipping the lines at the bank – once I find a bank, and set up an account of course 😉

  3. Kevin said

    April 23 2007 @ 7:39 am

    nah it was quite informal to be honest. two nice ladies came round 🙂

    its just to make sure no one sets up a company account who shouldnt (im assuming tax dodgers, money laundering etc). They would go and check out the buidling of anyone registering a company account.

    funny thing is i quickly stopped using the company account as the internet banking for it was terrible. so i switched back to using my personal account (which is ok because its just myself)

  4. Adam Ferguson said

    April 23 2007 @ 11:19 am

    Sweet! Congrats man. I bet it’s a great feeling to own an official business entity. An LLC is just a bit different than existing only as your name.

  5. Leroy Brown said

    April 24 2007 @ 11:52 am

    Thanks Adam.

    It is a good feeling, and I think it’s just going to help me work harder, since it all seems “official” now. Rather than just doing work on the side, it’s more like I own my own business. Neato.

  6. George said

    April 24 2007 @ 1:07 pm

    Congrats on getting the LLC set up. I am planning on setting up one soon. My wife set up one for her business with her friend and we also set up one for a business that never got off the ground, but I want to set up one that will cover all of our online ventures.

    You just inspired me to get going on that.

    All the best,

    George

  7. Leroy Brown said

    April 24 2007 @ 7:17 pm

    Thx George. I’m paranoid, so I’m always worried about getting sued, though I can’t for the life of me come up with a reason why anyone would sue me. But that’s one of the biggest reasons I made the plunge.

  8. George said

    April 25 2007 @ 7:39 am

    I have had those concerns too. Another option is to take out insurance. In fact, someone at the SBC suggested I take out insurance AND form an LLC.

  9. Adam Ferguson said

    April 25 2007 @ 7:50 am

    Not to sound naive or anything, but what are you guys doing that has you so concerned about getting sued?

  10. Leroy Brown said

    April 25 2007 @ 8:08 am

    I don’t know why I’m paranoid of getting sued. I do a bit of affiliate marketing, and I guess if I step on someone’s toes with bidding on trademarked terms, there’s a potential for a lawsuit. I’m also not known for holding my tongue around here, and I’ve probably offended bunches of people with a few of my posts…

    I probably won’t ever be sued. But I like to know that my personal assets are safe in the event that it happens.

  11. Adam Ferguson said

    April 25 2007 @ 8:13 am

    Ahhh, ok. I didn’t know if you were hosting cockfights in your basement or something.

  12. George said

    April 25 2007 @ 12:00 pm

    Some bloggers have been sued for comments other people left on their blog. You just never know who you or one of your readers might tick off.

    Being sued for blogging is unlikely, but it does happen.

  13. Leroy Brown said

    April 25 2007 @ 7:53 pm

    I mean I do enjoy the occasional cockfight, though I prefer to hold them in the living room ( no basements in San Antonio ). However I don’t consider them to be official company business.

    On another note… what title should I put on my business cards? Owner / Founder / President? I like the sound of president – does an LLC have one of those, or it pretty much up to me?

  14. Adam Ferguson said

    April 25 2007 @ 8:10 pm

    No basements? Weird.

    You could put whatever you want. It’s your business. You’re allowed to appoint any positions. President seems appropriate.

  15. Leroy Brown said

    April 26 2007 @ 7:25 am

    Ya they say the ground is too hard here, and basements would be too much work. Whatever… lazy texans.

    Hmm anything eh? Cheif Llama Handler so… tempting….

  16. George said

    April 26 2007 @ 8:43 am

    The ground is too hard here, have you ever tried digging through the concrete … I mean clay ground here? We didn’t have basements where I grew up either, because in Florida a basement would equate to an underground swimming pool.

    Chief Lama Handler (CLH) sounds good, but I think CEO sounds pretty good as well.

  17. Rian Brooklyn said

    April 28 2007 @ 9:16 am

    Great info…something I’ve put off for far too long. I’ve shelled out $225 for far inferior reasons for my business, so it’s time to get on the ball. I’ve been looking at Nevada, Delaware, and Wyoming. I hear Nevada isn’t all it’s cracked up to be. What added privacy does Delware provide?

  18. Leroy Brown said

    May 1 2007 @ 9:07 am

    The biggest thing about Delaware, and the primary reason I chose it, is that the LLC owners names and addresses do not become public record. In most states, the name and home address of the LLC is on display for anyone to see. I’m totally not interested in some angry nutball knocking on my door.

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    Green Llama is a place to learn about making money online. Any ideas or walk-through's I have, I'll post here for your enjoyment. I also do product and online service reviews.

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