Setting up an LLC or C-Corp is one of the easiest steps. Having said that LLC is like giving birth to a separate entity. This means you and your firm are two distinct entities. USA has one of the most liberal and easy rules when it comes to setting up an LLC or C Corp.
Even if you don't reside in the USA or don't have US citizenship or an SSN number you can still register your C corp or LLC in the USA. The only two documents you need for registration of LLC are:
- Passport Copy
- Utility Bill or Mobile Bill
In order to set up an entity you need to do the following steps:
1. Decide on a Business Name
First and foremost you need to decide on the business name you want to register your LLC in. This can be any name even your Doing Business As (DBA) name. DBA is the name or the brand your run your business name in.
2. Decide on Your Firm’s Entity if you want LLC or Corporation
You need to decide whether your business will be a sole proprietorship, single member LLC or Multimember LLC or Corporation.
If you need help deciding that you can always visit our guide on different types of business registrations for your eCommerce business.
3. Decide on the State of Registration
That's where you decide which state you want to register your business in. You don't need to register your business in the state you reside in. It can be in another state too. The most recommended state for LLCs is Wyoming.
Having said that Wyoming ends up being lower cost as compared to others.
4. Submit all the Detail
Submit all the details as requested by the portal which can be FirstBase or IncAuthority, and make the payment if necessary.
5. Sign The Documents:
Once all of the details are filled and paid, the agents will send you all the documents with all pre-filled details, you need to take a printout of the documents, sign them and send them across.
You have to keep these documents for your records.
6. Open the Bank Account:
The guys at the portal will help you open your bank account with an online bank. E.g. Brex or Mercury.
As per the latest update, Brex doesn't any longer opens bank accounts for start-ups.
But, Mercury has great online banking services. With mercury after you spend more than $1000 on your Mercury account debit card, you get $250 as cash back., we have worked this deal specially for you.
Virtually making your LLC free.
7. Get a Mailing Address:
If you don't have a physical presence or address in the US. Then you can get one mailbox from Anytime Mailbox which starts as cheap as $10 per month.
Having an address in the US is necessary for any incoming mail and incorporation.
8. Receive all your Documents:
Within 4-5 days you will receive all the documents from the agency. Including your certificate of incorporation and EIN number.
9. Keep Your LLC Active:
You have to keep your LLC active every by paying fixed annual agent fees and filing returns. This can cost anywhere from $49 as agent fees to CPA fees for filling annual federal returns for your LLC.
Do I need an LLC for Amazon Business?
As already mentioned in other articles LLC or C corporation isn't necessary when selling on amazon. But having an LLC has its advantages, including separation of ownership as well as liability from your personal liability. Which makes it critical.
Is opening an LLC and keeping LLC active expensive?
Opening an LLC might need an upfront investment with some agencies but at the same time, when I open my LLC and C-corporation, I actually got it done for free.
I paid for the registration and other fees but I got my money back when I opened an online account and got cash back for using the debit card associated with my account. Thereby making LLC registration almost free and in some cases earning $50 extra.
Can I set up an LLC by myself? Or do I need to hire someone?
We never recommend setting up LLC or C-Corp by yourself. We would instead recommend setting it up through an agency since they know the procedure very well as well have formats of all the documents ready.
I got my Wyoming LLC in just 4 days ready and C -corp in exactly 5 days including opening an account with the help of an agency. Which otherwise can be a great hassle if done by self.
Do you need to create an operating agreement for my LLC?
The operating agreement in readymade format is already provided by guys at firstbase and INCAuthority, thereby reducing your overall headache.
Conclusion
We recommend that you set up an LLC if you are serious about starting your own business. But if you are someone who is just starting and trying out things and not sure of your business. Then you can skip forming an LLC. You should form an LLC when you are ready to start and ready to go all in.
Samrudha Salvi ‧ Author
With more than 5 years on selling on amazon, and helping 100s to get started on Amazon.
