There are various reasons why an individual chooses to blog. As stated earlier, it can be a form of expression. It can also serve as a way to share knowledge, refine writing skills, help others, and build a network. But one of the things that make blogging attractive to many people is that it can be a way to make money. Starting a blog does not require you to register with the state. Thus, you will not have to file llc paperwork to create one.
Turning Your Blog into Business
Any individual interested in posting content online can make a blog anytime.
However, the circumstances may change once you start earning from the blog. Whether you want to monetize the blog or want to turn it into a business entity, you will have to manage it more carefully so that you can maximize its profitability.
Forming an LLC
What many people fail to realize is that blogging can also make you vulnerable to the risks that businesses face. As your influence grows and your readership increases, you are open to such risks. This situation is especially true once you start accepting advertisements, promote products or services, and enter contracts with third parties.
Because of this, many bloggers consider the idea of treating their blogs as businesses. However, they are often unsure of how they can make that transition. If you are one of them, consider forming a limited liability company (LLC). Doing this involves a process and the filing of LLC paperwork.
An LLC is a hybrid structure for business entities. What makes it attractive, especially to many budding entrepreneurs, is it offers three key advantages.
- It offers liability protection. Choosing an LLC structure limits the personal liability of the owner. For example, you have decided to make money from blogging. You may start writing about other individuals or businesses. If you happen to create content that instigates legal action from a third party, you may face lawsuits. If you choose to register your blog as an LLC, the treatment will be of a separate legal entity. Thus, all your assets will have protection. All liabilities will fall into the assets of your business.
- You will have tax advantages. An LLC is a pass-through entity. Many states do not tax the LLC directly. They will calculate the profits and losses of the LLC independently. Because of this, you can control when and how the state taxes the money that you are making from your blog.
- It makes you look more professional. Turning your blog into an LLC can help give you a more professional image. Because of this, you may have a bigger chance of attracting new readers and retaining your current readership. Prospective clients are more likely to take your blog seriously.
The LLC Paperwork Process
Before forming an LLC, you have to understand that each state has its own process and regulations. You have to make sure you follow every step carefully to avoid complications and problems in the future. Here is a step-by-step guide that can help you prepare for your registration.
- Choose the state where you will form the LLC. The place where you register the LLC is a crucial decision. As stated earlier, each state has its own laws. You can start by researching the advantages and disadvantages of doing business in each of them. Among the most popular states for small businesses and budding entrepreneurs are Delaware, Nevada and Wyoming. They have business-friendly climates and offer tax benefits. You can choose to register with the state where you are living. Since you are more likely to operate your business there, it will be easier for you. Before deciding, consider the business climate, fees, taxes, and other relevant factors that may affect the operations of your LLC.
- Choose your company name. The name of your LLC is important. It has to be distinguishable and easy to recall. Additionally, you will also have to make sure that it complies with the naming rules of the state. Check if the name you want is available and that no other business entity in the state is already using it. The state may also have restricted words. Make sure you do not include these in your LLC name. You also have to take note that most states do not allow the use of names that may confuse your company for a government agency. Generally, most states also require the inclusion of the words limited liability company or any abbreviation of said phrase, like LLC.
- Reserve the company name. Doing this is optional in most states. However, it can help ensure that no other business entity grabs the name while you are taking care of the registration process. You may need to file an application form and pay a fee for the reservation.
- Nominate a registered agent. All LLCs need to appoint a registered agent to receive and forward legal documents. It can be an individual or a company that has a physical address in the state where you will form the LLC and must be available during business hours. The registered agent will be the state’s point of contact with your LLC.
- Submit Articles of Organization. The name of the form may be different in each state. No matter what the state calls it, your LLC has to file paperwork. It also comes with a filing fee. The processing time also depends on the state. Check the requirements on the website of the Secretary of State where you wish to conduct business. You can also hire a third party to handle the process for you.
Forming an LLC can be beneficial for bloggers who want to earn money from it. However, the whole process may be confusing. If you need help with the LLC paperwork, DoMyLLC can help.
Business Filing Section