A new year is coming, and that means it's time to re-evaluate your home business. Is it working properly in its current form? Last year, I decided that a sole proprietorship wasn't right for me, and I set up a Limited Liability Company (LLC). Setting up an LLC can be done on your own, but I found it totally worth the $150 I paid an accountant to help me set mine up (he does my taxes now, too).
Pinyo over at Moolanomy offers some simple steps to follow when you set up your LLC:
2. Select an appropriate name for your home business. It should end with "LLC" or "Limited Liability Company" to designate your business type. (My home business is called "Miranda Marquit Freelancing, LLC." Boring, but it gets the job done.)
3. Complete the form and turn it in. You will probably have to pay a business license fee to your state.
4. Publish a notice in the newspaper, if required. Some states require this, and others do not. Some states require that you publish before you turn in your LLC form. So make sure you know the regulations ahead of time.
I'm glad I switched my home business to LLC. It's been beneficial in terms of taxes, and I found a good accountant on top of it!
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