LLC by use

An LLC for Your Consulting Business

A consultant's business is a stream of contracts, invoices and deliverables. Forming an LLC gives all of that a legal owner that is not you personally: the company signs the engagement letter, the company invoices, the client pays the company, and if a project goes wrong the client's claim is against the company.

It also answers the question larger clients ask before they will pay a vendor at all. Procurement departments want a company name, a company bank account and a W-9 with the company's federal tax number on it. A sole proprietor can supply those, but an LLC supplies them without putting your personal details on every vendor form.

Form the LLC, filed for you

Pick the state, answer a few questions, and we prepare and submit the filing. Every cost is shown before you pay.

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Why an LLC for This

Contracts and liability sit with the company
An engagement letter signed by the LLC makes the company the party on the hook for the work. Professional liability insurance still matters for advice-based work, but the company is the first line.
Clients onboard a company, not a person
Vendor registration, purchase orders and payment all run in the company's name. Some clients will not contract with an individual at all, particularly for longer engagements.
A place to grow
Subcontractors, a first employee, a second partner: each is simpler to add to a company than to a sole proprietorship. The operating agreement can be amended when the business changes.

What the Application Asks You to Decide

Which state: Your home state, where you work from. A consultant who serves clients nationally does not need a company in each client's state; the business is run from where you sit. Forming elsewhere adds a foreign registration at home with no benefit for a service business.
The company name: Your own name plus Consulting LLC is common and easy to clear. A brand name works too, as long as the state finds it distinguishable from existing companies. The name on the filing is the legal name; you can still trade under a shorter one with a DBA.
Single-member, member-managed: A solo consultant is the single member and manages the company. That is the simplest configuration and the one the application fills in by default when there is one owner.
Registered agent: Required in every state, with a street address in the state, available during business hours. Consultants who work from home can serve themselves; the home address then appears on the public record, which is why some choose a registered agent service instead.

After the State Approves It

Open the company bank account and start invoicing from the company. Payments to a personal account undo the separation the LLC creates.
Update your engagement letter template so the LLC is the contracting party and the signature block names you as its member or manager.
Re-paper existing clients at the next renewal or statement of work.
Calendar the state's annual report and any state business registration your city or county requires.

General information about how LLCs are commonly used, not legal, tax or investment advice. Whether an LLC, and which structure, fits your situation is a question for an attorney or accountant who knows your facts.

File in the States Owners Pick Most

Every state and DC is available in the application. Each state page shows that state's fee, filing portal and typical processing.

Questions

Does an LLC change how my consulting income is taxed?+

Not by default. A single-member LLC is disregarded for federal income tax, so the income reports on your own return as before. Some owners later elect S corporation treatment for the company once income reaches a level where it makes sense; that is a tax decision to make with an accountant, not part of the state filing.

I already have clients. Can I switch them to the new LLC?+

Yes. The usual way is a short amendment or a fresh agreement at the next renewal, with the company as the new party, plus an updated W-9 for their vendor file.

Should I form a PLLC instead?+

Only if your state requires licensed professionals in your field (law, medicine, accounting, architecture, engineering and similar) to use a professional LLC. Management, marketing, IT and most other consulting is an ordinary LLC.

How long does it take?+

The application takes about ten minutes. Your state then approves the filing on its own schedule, from the same day in some states to a few weeks in others. Same-day submission gets your filing to the state the day you order.

How fast is the filing submitted?+

On a standard order your filing goes to the state within 3 business days. Choose same-day submission and an order placed before 2 PM Eastern on a business day goes in that day. The state's own review time comes after that and varies by state.

Other reasons people form an LLC

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