Form an LLC Online with Tailor Brands

The first step when forming an LLC online is to name your business. This name will be required when you file your application with the authorities.

Here are some tips for choosing the business legal name for your LLC:

• Pick a name that reflects your business and allows scope for growth.
• Make sure it’s unique and is not being used by any other business.
• Keep it short, easy to spell, and easy to remember for your customers.
• Ensure it follows the state’s naming guidelines for limited liability companies.
• Avoid using any misleading or deceptive words or phrases in the name.
• Always check if a matching domain name is available before you finalize.
• You should also check if matching social media handles are available.
• Avoid using your personal name as that would look unprofessional.

The LLC naming guidelines differ for each state, so find the specific requirements for your state of formation and name your LLC accordingly.

After you’ve chosen a name for your LLC, you may still not be ready to apply for an LLC online right away. In this case, it makes sense to reserve your business name.

Here’s what you should know:

• Not all states may allow name reservation, so find out the requirements for your state of formation.
• Typically, states allow you to reserve LLC names for a period of 90-120 days, but not more.
• Some states may allow a renewal of the name reservation, but most states do not allow that.
• The filing fees for reserving a name for your LLC, will vary from state to state, so find the specifics.
• Reserving an LLC name doesn’t make it official; it will be official once you file the LLC application.

Also, make sure you find and buy a domain name that matches your LLC name. This will help you later when you create a website for your new business.

When you form an LLC online with Tailor Brands or any other service provider, you will need to choose the state of formation for your new business.

Here are some tips to choose among the best states to form an LLC online:

• The most obvious choice is your home state, as it’s easier to run a business from the state where you reside.
• If your home state has unfavorable tax or business laws, then you may consider other states to form an LLC online.
• The next most obvious choices would be states that have no state taxes, which can help you save a lot of money.
• You could also opt for states like Arizona or Kentucky that have low LLC formation and other state filing fees.
• Also, consider annual report filing and other compliance requirements when choosing a state to form an LLC online.
• Lastly, opt for states that offer business-friendly laws and a great environment before you form your LLC online.

Your choice of state to form an LLC online will depend on a number of factors, other than the ones listed above. So, consider all aspects before making a choice.

The next step you need to take to form an LLC online is to choose a registered agent. Since you’ve already selected a state, you need an agent within that state.

Here are some tips for choosing a registered agent for your LLC:

• Decide whether you want to be your own agent or want to outsource the responsibility to a professional or agency.
• Choose whether you want an individual agent or an agency that can handle your legal documents better but may cost more.
• If you plan to operate your business across states, opt for an agency that provides nationwide registered agent services.
• Look for registered agents that offer additional services, such as legal services or annual compliance reminders.
• Check the state’s requirements for registered agents and ensure that your chosen agent meets the eligibility criteria.
• Ask people in your professional network for recommendations and check the agent’s reputation and reviews before selecting.

Even though most states don’t mandate having a registered agent, it’s recommended that you still get one. This will ensure you receive legal documents on time.

This is the most important step in the process of forming an LLC online, as this will legally register your business with the state where you decide to form it.

Here’s everything you need to include:

• Include all the information about your LLC, from its name and address to the purpose of the business.
• Add the details about the various LLC members, including their names, addresses, roles, and other relevant details.
• You’ll also need to provide information about your LLC’s registered agent, including their name and address.
• Mention if you’ll run a multi-member LLC or single-member LLC or if it will be member-managed or manager-managed.
• Information about the organizer—the person filing the Articles of Organization—like the name, address, and signature.
• If you plan to run your new LLC perpetually or if there’s a specific duration you have in mind for running your business.

Once you’ve filled out the application and prepared all the legal documents, you can submit the online application yourself or via a service provider like Tailor Brands.

Creating an LLC operating agreement is an optional step in the guide on “how to form an LLC online” but we still recommend that you don’t skip it.

Make sure you include all important information, such as:

• The ownership structure of the LLC, including member roles and responsibilities and their ownership percentages.
• The management structure and decision-making process, including voting rights and protocol for majority or unanimous decisions.
• Capital contributions made by each LLC member, including their initial contributions and any planned future contributions.
• The guidelines for how the profits and losses will be distributed among members and when they will be distributed.
• The process for adding new members or removing existing members, including the voting procedure and approvals required.
• Conflict-resolution procedures, such as mediation, arbitration, or court litigation, and the process for dissolution of the LLC.

A comprehensive operating agreement will help your LLC run smoothly and ensure that the day-to-day decisions are made quickly and efficiently.

When you form an LLC online, you’ll need to complete several other steps, apart from the LLC application filing and EIN application is one such task.

Here are some reasons why you’ll need an EIN for your LLC:

• Some banks ask for an EIN for opening a business account, so it’s useful in keeping your personal and business finances separate.
• The most common use case of an EIN is that it’s required for filing payroll taxes and employment tax returns with the IRS.
• If you choose your new LLC to be taxed as a C-corp or an S-Corporation, then you’ll need a tax ID or EIN to file business taxes.
• Having an EIN shows vendors, banks, and customers that your LLC is a legitimate business entity and builds credibility.
• It also helps build trust with investors, who’ll be more likely to invest in businesses with an EIN than those without one.
• Lastly, you may also need an employer identification number to apply for certain local or state business licenses and permits.

Having an EIN has multiple advantages and we recommend that you get one. If you don’t want to deal with the process, you can always outsource to service providers like Tailor Brands.

After you form an LLC online, you still can’t start running your business until you get all the business licenses required by your state and county.

Here are some common types of licenses you may need:

• Most businesses need a general business license to operate in a specific city, county, or state legally.
• Businesses or individuals in regulated professions, such as real estate and consulting businesses, need professional licenses.
• Businesses in the food or medical industries may need health and safety permits to signify they follow safe practices.
• LLCs that sell physical goods, specific services, or digital products in states with a sales tax need a sales tax permit.
• If you plan to run a freelance business from your home, you’ll probably require a home-based business permit.
• You may need some federal licenses if your business is in federally regulated industries like aviation and firearms.

Tailor Brands can help you find out the specific licenses and permits your LLC needs and will also help you apply for these licenses and acquire them quickly.

Having a business bank account is crucial for building a banking history for your business and keeping your business and personal finances completely separate.

Here’s all that you’ll need to open a bank account for your LLC:

• First and foremost, you’ll need your LLC formation documents (Articles of Organization) to prove your LLC is a legal entity.
• Next, you will likely need an employer identification number to establish your LLC’s identity and prove its credibility to banks.
• Of course, you’ll need to provide all essential information about your business, such as name, contact information, and address.
• The member who’ll be handling the business account will need to provide their personal contact information and other details.
• An LLC operating agreement may be required to prove who has the authority to open the account and make financial decisions.
• You may also be asked to show business licenses and permits to prove that your business is in compliance with local regulations.

Once you open a bank account, it will help you track business expenses and income, which will help you with accounting, bookkeeping, and financial reporting.

One of the most important tasks after you file for an LLC online is to get it insured. You’ll need multiple types of business insurance to get wide coverage.

Here are some common types of insurance you can consider:

• General liability insurance is needed to protect your LLC against claims of bodily injury, property damage, and personal injury.
• Professional liability insurance protects against claims of negligence, errors, or omissions in professional services.
• To protect physical assets like buildings, equipment, and inventory against damage, you’ll need business property insurance.
• Workers’ compensation insurance provides medical benefits and wage replacement for employees injured on the job.
• Product liability insurance can protect your LLC against claims of injury or damage caused by defective or unsafe products.
• If you plan to use various vehicles, such as trucks, for your business, then it’s advisable to get commercial auto insurance.

The types of insurance you need will depend on your type of business. Tailor Brands can help you find out the best insurance plans and ensure your LLC is protected.

This is an optional step in the LLC formation process but could be useful to you if you plan to run your business under an assumed name or fictitious name.

Here are some scenarios where it may be useful to get a DBA:

• If your LLC name is too long due to the state’s naming requirements, you might want a shorter, catchy name for marketing and branding purposes.
• You can acquire multiple DBAs to give distinct brand names to different brands or product lines and maintain unique identities for each.
• When you expand into new geographic markets, you may need a DBA to use a locally relevant name to represent your business in the area.
• Instead of creating multiple LLCs for different businesses you could consider getting multiple DBAs to give a distinct identity to each business.
• Some businesses also get a DBA to give a different name to their online store, to make it more memorable and catchy for customers.
• Lastly, one important use case for applying for a DBA is when you need to rebrand your business to adapt to the market or target audience.

Every state has different filing fees and processes for applying for a DBA. So, do your due diligence and follow the process, or outsource to a professional agency like Tailor Brands.

After you file for an LLC online and complete all the previous steps, you’re ready to run your business. It’s crucial that you stay compliant with the state and federal regulations.

Here are some things you may need to do:

• The most important compliance requirement is that you file your taxes accurately, ensuring you don’t miss the annual tax filing deadline.
• Some states require LLCs to file an annual report, so ensure that you do that on time and pay the state filing fees, as required.
• If, at any point, you decide to change your registered agent, you need to notify the state authorities and provide the details of the new agent.
• Most business licenses have expiry dates, so ensure that you renew all licenses and permits before they expire, to stay compliant.
• If there are any changes in your LLC’s ownership structure, you must notify the state authorities and the IRS, to ensure the changes are registered.
• Lastly, maintain accurate financial records for your LLC, irrespective of whether these are mandated by the state or not.

Tailor Brands offers annual compliance reminders as a service with its paid plan. This will ensure you don’t miss any important deadlines and stay in good standing with the state.

If you want free LLC formation then this is the best plan for you.

Here’s what you’ll get with the Lite plan:

• Online Business Formation: Tailor Brands’ team of experts will help you form an LLC online. You just need to provide the necessary information and documents and they’ll take care of the online application process. The company doesn’t charge anything for this service, but you will need to pay the filing fee, which will vary depending on the state of LLC formation.

Price: Free

This plan will help you form an LLC online for free but doesn’t include any other services. If you need anything other than online LLC formation, you should check out its paid plans.

Apart from LLC formation, this plan also includes:

• Annual Compliance Reminders: After you form an LLC online, you’ll need to ensure that you comply with the ongoing compliance requirements of the state where you run your business. Tailor Brands’ team will keep track of all important requirements and deadlines and keep you updated to ensure you don’t miss any.
• LLC Operating Agreement: Every LLC should have an operating agreement to ensure that everyone managing the business knows how things should be run. The team at Tailor Brands specializes in helping businesses prepare comprehensive operating agreements. They’ll ensure you don’t miss anything important.
• $30 Amazon Gift Card: Apart from the services mentioned above, you will also get a gift card for $30. You can spend this amount on buying anything from the Amazon store. It need not be a business-related purchase, as you can use it to buy anything. Consider this an additional perk over and above everything else.

Price: $199 per year

If you want more business services, apart from what you get with the Essential plan, this is the plan for you.

Here are the additional services you will get:

• Website domain: Once you form an LLC online, you’ll also need to launch a website to attract potential clients to your business. A web domain is essential for hosting a website. You’ll need a domain name that matches your chosen LLC name. With this plan, you’ll get a free domain name for the first year.
• DIY website builder: Once you have the right domain name, you can start designing your website. With this plan, Tailor Brands will provide you with DIY website-building tools to create your website. You don’t need any prior experience or coding knowledge to design a user-friendly website for your business.
• Logo Maker and Other Business Tools: With this plan, you get access to a plethora of business tools and services. From a logo maker to a social media content creation tool, there’s a lot on offer. You can also get a digital business card designed by professionals, which will be useful for marketing purposes.
• $50 Amazon Gift Card: One additional benefit of choosing this plan is that you get a $50 gift card, apart from all the services. This instantly provides more value for your money. Though the services are enough to justify the annual pricing, this is just an added perk. You may use it to buy anything from the platform.

Price: $249 per year

Tailor Brands offers numerous services that are not a part of its LLC formation plans. You need to pay for each service individually, no subscription is needed.

Apart from helping you form an LLC online, Tailor Brands also offers these services:

• Business Permits and Licenses: After you form an LLC online, you can’t start operations till you get all the required business licenses. These would differ by the type of business and location. Tailor Brands’s team of experts will help you find the specific requirements for your business and help you obtain business licenses.
• Employer Identification Number: A tax ID or EIN is what the Internal Revenue Service (IRS) uses to identify businesses for tax reasons. It’s also useful for businesses for various reasons, such as opening a bank account. Tailor Brands will help you apply for an EIN, taking care of the entire application process.
• Bank Account: One of the things you should do after you form an LLC online is open a business bank account for your new LLC. This will make it easier for you to track business transactions and keep them separate from your personal expenses. Tailor Brands will help you find the best banking solutions for your LLC.
• Business Insurance: Once you form an LLC online, you need to get your business insured to protect it from various unforeseen circumstances. There are different types of insurance you can get and Tailor Brands can help you figure out which ones you need. It will also help you acquire these business licenses.
• Tax, Accounting, and Invoicing: After you form an LLC online, you’ll need to set up accounting and bookkeeping processes for your business, as soon as possible. Lastly, Tailor Brands can help with that. It offers various tax, accounting, and bookkeeping services, so you can choose which services you want.

Price: Price differs per service