How I formed my LLC
How I formed my LLC
To make Money Talks an official company, I needed to enlist professional help.
I had always seen the letters, LLC, after companies’ names.
But for the longest time, I never knew what those letters meant.
Even after learning the acronym stood for limited liability company, I didn’t understand why the letters were included and how exactly they benefited business owners. To be totally transparent, I still don’t fully get all the ins and outs.
Yet on July 13, I became the proud sole proprietor of my first LLC. It was a necessary step to pay Parker as a Money Talks partner.
It was the key to unlocking her simple path to wealth.
I told you two months ago I was in a funk and feeling overwhelmed due in part to how much I had on my plate. No factor weighed heavier than figuring out how to launch our LLC and turn Money Talks into an official company. It’s something that’s been in motion since May.
In that regard, these past three months have felt like an eternity. I spent most of the time spinning my wheels and getting nowhere trying to form an LLC myself. I didn’t speak the language and didn’t know what I was doing.
Worse, I ran into one hurdle after another from late May through early July, each making my mission more challenging. There was a delay setting up payroll with my freelance partner; I had Parker for nearly two consecutive weeks, which included a Father’s Day weekend to remember; I had the duties of my day job, which included a trip to Las Vegas.
It was all too much. I needed help. That’s not always easy for me to admit. At times, it’s even harder for me to seek.
But this was too important. Part of the reason I was paralyzed trying to do it myself was because I needed to make sure it was done right. Neither my family nor my inner circle is filled with the type of professionals trained in providing such solutions.
Good thing my cousin Clifton is well-connected. He graciously opened his contact list and reached out to a transactional lawyer with whom he has a long-standing relationship. The attorney, Carlos, is a partner at a prestigious law firm.
I paid the firm’s $500 retainer at 3:18 p.m. on July 6.
At 2:07 p.m. on July 13, Carlos emailed telling me our company was successfully formed.
Maybe I could have spent less money. Maybe I could have done it myself. But the convenience and care I received was worth paying for. Not to mention my peace of mind.
I had too many questions trying to do it myself. I wasn’t sure about establishing an appropriate business address, and I had no clue who to list as the registered agent. I also was overthinking and getting ahead of myself. The concept of owning nothing but controlling everything sounds cool, so I didn’t want to have my name on the LLC in any capacity — as if I’m a wealthy celebrity or wise criminal. I’m neither. Plus, Carlos informed me how that route would cost north of $3,000. Hard pass.
My hope, however, is that the pleasant experience is the start of growing my business relationships. I don’t know when I’ll need legal assistance again. But now I know someone to call.
Once our LLC was formed, I secured the necessary EIN (employer identification number) from the IRS website the following Monday, July 17. The process was painless and took only a few minutes.
With the EIN, I could open a business bank account. I had no familiarity with business bank accounts. I simply Googled “best online business bank accounts” and followed NerdWallet’s suggestions, selecting the one that sounded best for my needs.
On July 28, our business checking account was approved. We anticipate the first payment will land any day.
Now I need to learn how to manage payroll.