Our general recommendation is that investors and business owners work with a good local attorney to set up a limited liability company or a corporation. In our opinion, this is a great investment if you can find someone who’s good.
That said, many investors and many small business owners don’t have a couple thousand dollars to spend on legal advice—or least not when they’re first starting out. Accordingly, we provide several short kits in the form of 20+ page pdfs that can guide you through setting up an LLC or a corporation in your state.
The kits discuss the benefits of using a formal legal entity for your business or investing and explain in step-by-step fashion how to:
- Set up your entity in a few minutes
- Get a federal tax identification number for your new entity so you can start banking and other financial activities, and
- Elect to have your entity treated (for income tax purposes) as an S corporation so you can maximize your tax savings.
The LLC kit also comes with two sample LLC operating agreements written by Carl Baranowski, a well-known attorney and legal author, while the corporation kit comes with sample corporate by-laws document written by Mr. Baranowski. You’ll notice that we’ve provided an e-book option for forming an LLC or a corporation in all 50 states, so you get instructions tailor-made to your state laws and forms.