There are many decisions you must make when starting a company. And one of them is what business structure to select. This is important, especially since your choice will impact things like what is the extent of your personal liability, how will you pay taxes, and how much is your share of profits.
One of the business structures you can consider when starting your business is the limited liability company (LLC). This structure combines the characteristics of both partnerships and corporations because it offers owners liability protection and some tax advantages.
Forming an LLC isn’t a walk in the park though, especially if you haven’t been through a similar undertaking. Fortunately, you can hire an LLC formation service provider to streamline the process. Yes, there are companies that specialize in forming LLCs at the state level. You can partner with one to launch your startup.
There are many reasons you should hire a company like Legalzoom LLC or any other similar service provider. They include the following:
1. To Save Money
When entrepreneurs want to hire an LLC formation service provider, they often consider it an extra expense. But in reality, partnering with one saves money, especially when compared with going through the process alone.
When starting a company, there are many steps to take, including hiring service providers like accountant, lawyer, and registered agent, among others. You then incur recurring costs because these professionals must be compensated whenever they provide their services.
If you hire an LLC formation service provider, you’ll keep your costs at the lowest level. You can select a monthly or annual subscription. You won’t have to worry about recurring costs; you actually save a lot of money in the long run.
2. To Save Time
Every entrepreneur knows how precious time is—once lost, it can’t be recovered. Forming an LLC from scratch is a long process. And it can take much of your time if you don’t ask for assistance. Fortunately, you can partner with an LLC formation service provider who can handle the process on your behalf, which can save a substantial amount of your time.
The hired company will take full responsibility for forming your company without your involvement. Additionally, they’ll help find other professional service providers for your business. As such, you can focus on other important things.
3. To Get Lifetime Legal Advice
LLC formation service providers are experts not only on LLC formation but also on legal matters. If you think your startup will require ongoing legal advice, you can partner with one who offers such. They’ll provide you with legal advice and business guidance throughout the lifespan of your LLC.
4. To Maintain Your Peace Of Mind
Hiring an LLC formation service provider for your startup ensures that all the necessary documents are correctly filled out. Note that even a small mistake can lead to your application being rejected. And the rejection may set you back not only in terms of launching your business; it may also discourage you and even affect your mental health.
Company formation documents are very complex, and if not handled with due care, they can result in many human errors. Luckily, LLC formation service providers have experts in company formation on their payroll. They’ll evaluate your documents to ensure that everything is accounted for and have all the necessary information. As such, you’ll have a smooth process when launching your company, letting you have peace of mind.
5. To Access Helpful Startup Resources
Some people think that launching a startup only involves completing formation documents, but that’s not really the case. There are many other requirements you must meet to ensure your company is formed and operating legally. You might not be aware of them all if you choose to form an LLC on your own.
Most LLC formation service providers offer additional startup resources. They can provide you with business guides and expert customer support. You up your chances of successfully launching your company and maintaining its growth.
6. To Get Assistance In Forming Other Types Of Business Structures
If you want to launch any other type of business that isn’t an LLC, an LLC formation service provider can still be able to assist you. These include sole proprietorships, corporations, partnerships, and nonprofit organizations. However, you must partner with a provider familiar with the type of business you want to launch.
Takeaways
Partnering with an LLC formation service provider is one of the best ways to launch and run a successful startup. It allows you to save money, get lifetime legal advice, and gain peace of mind. This comes with a caveat: you must find the best service provider. Make sure you work with someone with proper credentials and enough experience. It doesn’t hurt to look for a service provider with a fair and reasonable price.
The post Why Startups Should Consider Hiring LLC Formation Services appeared first on The Startup Magazine.
