create an llc

How Do I Create An LLC?

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Yesterday we looked at formalizing your blog as a business and creating an LLC seems to be a common choice for many well-established bloggers that I know.

Create an LLC (the cheap way)

I happened to know a lawyer who helped me through the process, but if you don’t have a $1000 ready to spend on lawyer fees you can use an online legal service like Rocket Lawyer. There are a lot of places like them, but basically, they help you to form an LLC at a much better rate.

rocket lawyer LLC pricesFor example, in the screenshot to the right, you will see their pricing. As you can see the total cost (for my state) comes out to $433.95, but if we take a closer look you will see that you can get it quite a bit cheaper by NOT getting some of the optional services.

The registered agent

All corporations and LLCs are required to have a registered agent – a person or business able to receive documents during normal business hours at a legal physical location within the state in which the business is registered. Since I am at my business location during regular business hours I chose to be my own registered agent and saved the fee. Some people may need this, but surely some will not.

The Tax ID (or EIN)

This one is almost a joke. Like I mentioned a few days ago you can apply for an EIN online for free. It literally is a 3-5 minute process and then you have your Tax ID. No one needs to pay $40 for this.

The Corporate Kit

This is basically just a bunch of junk (in my opinion) to get you to buy. Some people may want it, but it all can be found or purchased separately. According to their website, “The corporate kit memorializes your new business. It has all the essential tools to get your company started: embossed binder, stock certificates, sample bylaws, business forms, and more.”

Final Thoughts

If you can do without those things and happen to live in Missouri like me (each state’s filing fee is different) you can get it all done for $225 at Rocket Lawyer.

Once you have your blog business officially established, you can move to creating a blog business plan. This will help you to have a plan in place to profit from your blog. The next step is for you to register your blog as a business. 

Have you created an LLC yet? If so where and how did you do it?

11 thoughts on “How Do I Create An LLC?”

  1. Although many entrepreneurs consider the LLC first when forming a new company, LLCs should be the entity choice of last resort. The ground swell of shock and pain faced by New York entrepreneurs when they learn that their new LLC must pay $2000 to publish in Manhattan is only matched by the fervor of California entrepreneurs who must pay California’s “gross receipts fee”.

    California notoriously taxes LLC gross revenue, but not gross revenue of corporations and limited partnerships. The “gross receipts” fee can range from $800 (for annual gross receipts less than $250,000) to as much as $12,590 (for annual gross receipts greater than $5 million) per year. Corporations and limited partnerships, on the other hand, are subject to a flat $800 annual franchise tax, and new corporations are exempt from the $800 minimum franchise tax, but still subject to the 8.84% tax on any taxable income.

    New York is also prejudiced against LLCs. Only the LLC (not the corporation or limited partnership) must incur the hefty publication fee.

    So why are so many entrepreneurs forming LLCs rather than corporations? Although LLCs have developed a certain sex appeal and have become the “knee jerk” reaction to new business formation, it’s important to recognize that the cost of forming (and in California maintaining) LLCs can be substantially more than corporations.

    There might be a few special situations where it’s worth it and necessary to pay the extra cost of a LLC, but unless your business structure requires extra flexibility not available to corporations, you are going to own real estate, or unless you plan to raise money from foreigners or other companies (rather than individuals), forming a corporation rather than a LLC could probably save you a few bucks.

    1. Jeff,
      I have always heard the opposite – that corporations cost a lot more to open than LLCs? Can you shed some more light on this? And also corporations require a lot more maintenance, forms, hoops to jump through, etc – if I am not mistaken?

  2. This has been a stumbling block for me as everyone I ask gives me different information. Thanks for this. I think it should be coming off my ‘to do’ list shortly.

  3. It’s surprising – even shocking – to learn how gigantic the cost of maintaining a LLC in California and New York can be. In California, corporations and LLCs both pay a $800 minimum franchise tax, but only LLCs pay the extra franchise tax on gross revenue. Let’s say you are a business with $1 million in gross revenue, in California, the LLC would pay $6800 in franchise tax! New Yorkers pay a one-time fee to “publish” for a new LLC. The fee varies county-by-county, but in Manhattan, it’s nearly $2000. New York corporations, on the other hand, do not pay to publish.

    Why do California and New York have it out for LLCs? I once had a boss who explained that “you never want to know how either sausage or law is made”. Sure, it’s true that corporations need to maintain annual minutes, but the cost of doing that is insignificant relative to paying an extra $6000 in LLC gross receipts fee. Our firm, for example, handles the annual maintenance for 7,000 entities, and we charge $135/ year. Hope that helps! Jeff Unger (

  4. Forming an LLC is an excellent way for business owners to shield their personal assets. LLCs are also very beneficial to real estate investors. LLCs are one of the best means for holding real estate and other appreciating assets. Two major reasons for forming an LLC are:

    The two major reasons for forming a corporation are:

    Personal Liability Protection

  5. I am a newbie blogger who had a company before. I had been thinking of reopening my company once things pick up for me. Now here is the answer that it can be done or even should be done. Thanks Bob for God answering my prayer through you.

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