Thenetfool wrote about the basics of setting up your own business, today I want to talk about how to actually legally have your very own business.

Most people think that by buying a domain name they are buying the right to own a business which such name, that is a common mistake a lot of people make. If John Doe were to buy “www.Coats.com” it does not give him the right to call his website Coats LLC, or Coats Corp, if anyone wanted to buy either of them they would have the right to do so because John Doe never filed any papers with the government to claim such business as his own.

Since I’m in the business of freelancing, my buyers usually want to see a portfolio of the works that I have done they also want to know how good of a professional I am. And nothing says professional more than having your very own business and calling yourself the president of such Business.

If you’re also into freelancing you might want to create a portfolio website where you show all your works and all of the websites that you manage. By having a website, for example TheGermz.com LLC you are showing that not only do you own the domain but you are an actual business which reports to the government.

Legal Zoom can help you create your very own business with almost no paperwork to file as it is all done online.

With Legal Zoom you can file requests for an LLC, Incorporations, Non profit organizations and even trademarks, patents, and copyrights.

If you don’t know what either of these are you can check out the overview pages both for an LLC and for their Incorporations.

Limited Liability Companies (LLCs) offer the same personal liability protection as a corporation, but with fewer of the corporate formalities. They typically are not required to hold formal meetings or keep detailed corporate minutes. LLCs also offer great tax flexibility. Members can choose to be taxed as either a traditional corporation or as a “pass-through” entity.

Corporations offer personal liability protection, tax savings, and increased opportunities for raising capital. Corporations are also required to perform certain formalities such as holding annual meetings and keeping detailed corporate records (minutes). With LegalZoom you can choose to incorporate as either a C or S corporation.

For now we’ll review the prices of opening up a Limited Liability Company, or LLC.

Legal zoom claims that you can save up to 85% on your legal forms, which I trust because every other lawyer online that I’ve read charge you either $800+ dollars or your first born.

These prices vary by state, so if you live in New york you might only have to pay an extra $20 dollars but if you live in California it might be $65. Legal Zoom adds the extra amount that you have to pay by letting you choose the state that you live in.

The cheapest price, also called the economy package is $149 + your state’s fee. The package contains all the basics of an LLC, but it does not come with an Employer Identification number, so if you want the cheap package you’ll have to file this yourself. If you don’t feel like doing this yourself then you can pay them an extra $100 and they’ll do the EIN for you.

Another positive of Legal Zoom is that you don’t have to worry about filing for a company name that is already taken. Legal Zoom will search the LLC name and cross reference for your State, and you won’t have to wait to fix any issues like you would if you were doing this yourself.

Legal Zoom should be your top choice if you are interested in setting up your own business, or if you are like me and want to look more professional by having your own freelancing site.

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