If you are already in business, you need an LLC today. But when should you file an LLC if you haven’t launched? It’s important to make sure that you keep a level of protection as soon as possible. Therefore I recommend that you get an LLC in place before you sign any contracts as a new business. It’s always all about protecting you and your business.
In this episode we will cover:
- What is an LLC
- Contracts and protection.
- Where to get help to file.
If you need help with your LLC you can go to our website and use promo code: PODCAST to receive a discount.
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Episode 216: When Should You File Your LLC? Transcript
Andrea: [00:00:03] Welcome to the Legalpreneur Podcast. I’m your host, Andrea Sager, founder and CEO of Legalpreneur, Inc. As a serial entrepreneur and someone that works exclusively with small business owners legally protecting their business, I’m dedicated to covering common legal issues faced by business owners, providing you with the business knowledge you need to catapult your businesses growth and showing you just how some of the world’s most elite entrepreneurs have handled these legal and business issues themselves in true attorney fashion. The information in this episode is not legal advice. This is for informational purposes only, and you should always consult with your attorney before implementing any of the information in the show.
Andrea: [00:00:47] Hello. Welcome back. I am so excited to chat with you today about LLC’s. One of my favorite topics and specifically I’m going to be covering when should you actually file the LLC? You have probably heard me say as soon as possible. But what about when you have not yet started making sales, or if you haven’t even launched your business? I’m going to cover it. But first, got to get my spiel about Dream Bigger. You guys, we have the most epic lineup of speakers. Tickets are 25% off and not even just an epic lineup of speakers. But we also have incredible resources that you didn’t even know you need in your life. We’re going to have so many amazing booths. It’s going to be a great place to discover new resources. We’re going to have I don’t want to say this other big one because I don’t have the contract signed, so I don’t want to announce it. And then like, oh, something fell through, but we are going to have an I.V. hydration bar. We’re going to have. Tax resources, air resources, branding, social media like anything and everything you need for your business. There’s going to be a booth there, the resource is going to be there and we might have a little massage bar. That’s the big one that I’m going to hopefully announce soon. Just wait. It will come soon. I just.
Andrea: [00:02:13] I don’t want to fully, officially announce it until I have the contract signed, so just wait for that. But go get your ticket. 25% off. There are discount tickets available for groups of six or more. So if you have a group of six or more, contact me. Shoot me an email. [email protected] And I’ll get you the details on that. Into today’s episode, when should you file the LLC and specifically if you’re already in business? You’ve heard me talk about this. If you’re already in business, absolutely. You need to have an LLC already. Don’t wait until you’re making x number of dollars. What I’m really covering today is what about if you’re just planning the business? What if you haven’t even launched? You’re in the idea stage. When is the right time to file that LLC? I don’t think I’ve really had a full episode on this, so that’s what I’m dedicating today’s episode to. And then next week I’m actually going to cover in detail. Do you need more than one LLC? This is for if you have multiple businesses or you have revenue streams that are related, or maybe they’re not related, but they’re all under the same LLC. Like when do you need a second or third LLC? That’s going to be next week’s Monday episode, so. Here we go. When should you file your LLC if you have not launched? So I know when you are preparing your business, you’re getting ready to launch your business.
Andrea: [00:03:41] Or if you’re just in the idea stages, you’re thinking about opening a business, you’re thinking about doing this thing. When is the right time to actually file the LLC? Now there’s a couple of different answers that people could give you. And first and foremost, as soon as possible, like always, always, always, I would have that be like the first thing once, you know, like, yes, I’m starting a business. That’s when you want to file the LLC. However, I’m always going to say, however, I know that money may be an issue. Money may be at the forefront because you’re like, Oh, I got to pay for this. I got to pay for that. I got to pay for all these things. And maybe you don’t yet have the money to file for an LLC if that’s the case. Absolutely. Of course, as soon as possible, however. You absolutely want to have the LLC both for signing any contracts for your business. And the reason is because you want to make sure that those contracts are in the name of your business. They’re in the name of the LLC, not in your personal name. That’s the reason why you want to make sure you even have an LLC is when you’re signing contracts. It’s not you personally that’s liable.
Andrea: [00:05:03] So if you have contracts coming your way that people want you to sign or if you’re entering into business relationships, all of those relationships need to be in the name of the business. And this is why it’s also incredibly important to have written contracts. I don’t want to get into contracts, but this is another reason why they’re so important. If there’s issues down the road and there’s potential litigation, which is a lawsuit, then you always want to make sure you have the written contract because if not, the other party can argue, Oh, there is no signed contract, so they’re personally liable. Even if you have an LLC, they can make that argument. What’s the court going to say? I don’t know. There’s a million things that it could turn on. However, if you have a written contract in the name of the business, that’s what’s keeping you golden. That’s what’s keeping you personally protected. Now, as a refresher, the LLC, this is to protect you personally from liability, from the debts of your company. So if you get sued, if you have to file for bankruptcy in the business like you are being protected personally, if you’re a sole proprietor, you and your business are one and the same. There’s no degree of separation and you do not want to be one. And the same with your business.
Andrea: [00:06:21] You want that degree of separation. If the business gets sued, you’re not getting sued personally. If you personally get sued, they can’t come after your business assets. You want to make sure that you’re keeping this level of protection no matter what. So when should you file? As soon as possible. However, if money is an issue which I completely understand, then at least before you sign any contracts, before you enter into any business relationships, always make sure you have the LLC. Always make sure that you have an LLC in the contract, not you personally. Now, when you go to sign the contract, you will actually sign your name. However, it will say you’ll sign your name. That will be the signature. And then I’ll say by print your name and then it’ll have the name of the company and then your position typically like sign and underneath it will say by Andrea Sager and then. Legalpreneur Inc CEO. That’s typically how the signature block would go. At least it should. If it’s not like that, then you may not. She probably shouldn’t sign the contract because maybe the other party doesn’t know what they’re doing, which is a very real thing. Okay, guys, if you need help with your LLC, you can go to the Legalpreneur. We have file my LLC there. Use promo code podcast to get a discount on your LLC filing.
Andrea: [00:07:46] The price is $250 plus your state’s filing fees. This varies by state, but it is to $250 + plus your state’s filing fee. And then you can get a discount by using promo code: podcast. We can also be your registered agent. We’ve had an episode on registered agents in the past. So if you’re serious about that, go listen to it. If you sign up for the Legalpreneur membership in the month of September, we are actually covering your LLC fee. So we’re waiving that $250 and we’re covering up to $100 in LLC filing fees. That is, if you sign up for the Legalpreneur membership, it has to be the 12 month commitment, whether you pay monthly or annually, it has to be that annual commitment. We will cover your LLC to $250 plus up to $100 in filing fees. So that’s $350 in savings right there. And then with the membership, you still get the business audit, the free trademark search, like so many benefits in there. And of course, you get all access to your own attorney. So always a huge one there. So go sign up for the Legalpreneur membership this month for September Free LLC filing when you sign up. All right. I’m so excited, so much going on over here at Legalpreneur. I hope that you all have a wonderful week and I’ll see you next month.
Andrea: [00:09:03] Here at Legalpreneur. We’re committed to providing a supportive legal community for all business owners. I know how scary the legal stuff can be. If you found this information helpful, I would be so grateful if you could share it with the fellow business owner. And quite frankly, it doesn’t cost anything to rate, review or subscribe to the show. Your support helps me reach more listeners, which allows me to support more business owners in their entrepreneurial journey. Have any questions or comments about the show? Feel free to drop me a line on Instagram, I promise. I read all of the messages and comments and if you want to be a guest on the show or know someone that would make a great guest, simply fill out our application form and a team member will reach out if we think it’s a good fit. I’ll see you in the next episode.