Quitting Your Job Using Rental Properties - Day 21

March 1, 2016 - Tuesday Day 21

     Yesterday, we finally went ahead and started the LLC process.  I used LegalZoom.com to start the process of forming an LLC.  The name of our business was picked by Angela.  It is JAMC33 Enterprises.  The process to use Legal Zoom is very easy.  There are 3 different plans that you can buy.  I chose the cheapest one which was $149.  The filing fee in Texas is $301 and the shipping for the paperwork and stuff was $9.95.  I searched for a coupon code and found a $10 discount online.  The other plans were more expensive, and offered things that I don't think I need at this time.  Things like a company seal and binder, and 20 extra "membership certificates" which I don't need.  They also offered to set up my EIN, but from my research, that process seems very simple.  The more expensive plans did offer expedition, but I don't really need that either.  The time frame for the plan I ordered is 30 days.
     One thing you will need to do is find a "Registered Agent."  This is an entity that will be served papers if you are sued.  It does give you the option to use Legal Zoom as your registered agent, which I did, for a price of $159/year.  That cost will be charged to your credit card once your LLC is officially formed.   
     As you go through the process of setting up your LLC on Legal Zoom, the questions asked are related to the following:

• Which State your business will operate in
• The type of business you are opening
• Are licenses required
• Will you have employees within 12 months
• When will your fiscal year end
• Your Business address
• Your Business name
• Who are the owner and manager
• Do you want Legal Zoom to obtain your EIN (Tax ID #)
• Would you like a free tax consultation
• Will you operate a vehicle over 55,000 lbs
• Will your business involve a casino or gambling
• Will you sell Alcohol, tobacco, or firearms
• Are your goods subject to an excise tax
• What is your contact info for the IRS

     Then they try to get you to buy things.  Its up to you to decide which of these items you need.  I chose not to buy any of them.  They are as follows:

• Legal advice
• Tax advice
• Business licensing package
• Forms
• Business checking account through Bank of America
• Business credit card
• Website domain name

Please check out my website for my other side business/hobby. www.yrlenterprises.com and at facebook.com/yrlenterprises