Why I Got My LLC at Legal Zoom and You Should Too
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Two months ago I formed an LLC using Legal Zoom. I know some of you bloggers out there have already done this step so you can ignore this post if you want.
But if you intend to earn money with your blog or become a legitimate business then you would want to consider forming an LLC. Especially if you are providing services like consulting, coaching, intuitive readings, and so on (for bloggers).
The best part about forming an LLC with Legal Zoom is that it is all done online. How simple is that.
Why Form an LLC/The Process
I went to the Legal Zoom website and here is what I found out about a LLC:
A limited liability company, or LLC, is a business entity created under state laws which has the characteristics of both a corporation and a partnership. A LLC is becoming the most popular way to start a business due to the following advantages:
- LLCs are easy to set up and maintain.
- Members are typically not liable for the debts of the LLC.
- Income and losses can be passed through to members as in a sole proprietorship or partnership.
- LLCs do not have the same corporate formalities as a corporation.
- An LLC has a flexible management and ownership structure.
All Legal Zoom LLC packages include a custom operating agreement with provisions that safeguard your personal assets against liability.
The prices for having Legal Zoom file your paperwork for you is as follows:
Economy$99
Standard$289
Express Gold$359
I went with the express gold because I wanted Legal Zoom to take care of everything for me. I was willing to pay extra for the services provided by Legal Zoom.
There are three easy and I mean easy steps to setting up your LLC with Legal Zoom.
1.Complete the simple online questionnaire.
2.Legal Zoom reviews your answers, creates your LLC documents and files them with the secretary of state.
3.You receive your final LLC package in the mail.
From start to finish took three weeks and my final documents were sent via Federal Express. Legal Zoom stays in constant contact with you throughout the process via e-mail and also a couple of phone calls which is cool with me.
You can also check the status of your order on the My Account page.
The final documents came in a cool binder with all of my paperwork, a CD with forms that you can use, an official Mazzastick seal, and a seal making tool like a notary uses. This was more than I expected.
Additional Legal Zoom Services
Legal Zoom also has a ton of other services like:
1.Patent, Trademarking, & Copy writing
2.Wills,Divorce, & Bankruptcy
3.Incorporation, Non-Profit, & other business services.
They also offer patent work for any of you inventors out there.
I will definitely use Legal Zoom in the future and I highly recommend their services to you as well.
Protect yourself, Protect your business.
If you decide to get Legal Zoom I would love it if you would consider using the link below so that I can receive a referral commission. 
Go to Legal Zoom now and become a legit business owner and also check out their other great offers like Wills and Divorces too.
Category: Blogging/Business
About the Author (Author Profile)
I became curious about what motivates people’s behavior and attitudes, and what is the secret formula to success. As a result I got my hands on every piece of material that I could find to answer these questions.
I have immersed myself with knowledge and experience for over 15 years pertaining to the fields of Psychology, Personal Development, Spirituality, Physical Health and Vitality, and Metaphysical Studies. I have read over 700 books, 1000s of blog posts and listened to over 100 audio programs pertaining to personal growth. I’ve made tons of mistakes along the way but more importantly I learned from them.Now it is my turn to share what I know with you. Are you ready? Let’s Rock!
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One thing to make sure is that it is a partnership and that you're not the sole owner, otherwise when you get sued, they can pierce the corporate veil and get to your stuff. That's why have a partnership is better because it separates you from your LLC. In court, if it is shown that you are your business and your business is you, all things are game to claim!
So, to solve this, simply giving a friend/family/relative some "ownership" in the company, heck just give them 5% and have them be a non voting member, and make sure your the managing member and all will be good!
Hey Drew,
I like what you are saying here. I didn't know about that being fair game.
I thought that having an LLC would save me from that but if I do what you suggest I should be alright as far as protecting my stuff goes.
Thanks for the awesome advice.
Yeah, it's just stuff I've picked up reading the LLC for Dummies 2nd Edition. I'm actually in the process of forming an LLC myself with 2 of my friends and I'm contemplating whether to use a formation company (MyLLC.com, LegalZoom, etc.) or going with a lawyer. I've tried contacting a few lawyers and no response. It's not fun being treated like a nobody. The only reason I'd consider going with a lawyer is because there's 3 of us, and secondly one of them is a non us citizen.
But Justin, I'd seriously read up on it more and possibly ask a professional, which I am not one, and just double check. The books says you can just give 5% to a family member, non spouse, and it should be ok.
Hey Drew,
LLC for dummies, didn't know that they had that book out. :)
Your situation sounds a little more complicated than mine. Maybe a Lawyer is the way to go.
Legal Zoom was totally easy for me, I signed up for the Express Gold which comes with a 30 day free trial "ask a Lawyer" any question for free. I quit the service after 30 days so I wouldn't be charged.
I was researching LLC and found your site Justin. Thanks for the feedback on your experience with LZ. I are seriously considering using them and I am closer to that now.
I do have one question. Do you get your EIN immediately after completion of the paperwork if you go Gold? Or is getting my EIN something I need to go myself at the gov website?
Thanks
Hi Hervy,
If you go gold everything will be done for you and mailed to your house in the professional Legal Zoom binder.
Please consider using my blog to connect with Legal Zoom when you are ready.
Prasire your new LLC and very nice post, i certainly love this website, keep on it
Thanks for stopping by and commenting.
I will definitely use Legal Zoom again and I highly recommend their services. Thanks for commenting.
Great information Justin. I do have a question. When is a good time to do this? Should I wait until I'm further along? Because right now I'm not even close to making enough money online to fill up my car twice in one month.
I understand the importance of forming a LLC but just wondered if it was better to wait till I was generating a certain level of income per month.
Hi Benny,
The sooner the better in my opinion. Two respected professional bloggers that I follow got their LLC or incorporated their business within a couple months of starting their blog. I wouldn't miss this crucial step or wait too long to do it.
Great advice and congratulations on forming your LLC.
Besides the obvious legal benefits I also believe that doing this plays a significant psychological role. It says
"I am taking my business seriously and I intend to be successful."
Although I am not US based, most free enterprise oriented developed countries have similar entity provisions to cater for this.
~Marcus
Marcus,
Thanks. That's the other reason that I formed my LLC. Mazzastick.com is a legitimate business that I intend to use as a means of supporting myself financially.
I would add it into the clause ahead of time even though you probably could list it as an asset under the company.
From what I could gather you can change the articles of organization at any time that you choose.
Thanks for the tips! And, one more, what if I want to have another blog-business in the future? Can I have that somewhere in the clause? Or, you can just list that as an asset under the company itself?
Marlon,
I wanted to do the same, have a LLC general umbrella to cover all of my bases.
When I filled out the Legal Zoom form it specifically asked what kind of business is Mazzastick. I entered that it was a weblog that sells and promotes affiliate ads and also offers consulting.
I believe that when you set up your articles of organization for your LLC you could add in the umbrella clause.
You should be able to add all of your blogs/websites under one umbrella LLC and perhaps form a separate?new LLC umbrella for your Tech consulting Tech consulting- database management & development (SQL Server specifically).
LLC's are different from State to State though.
I would go to Legal Zoom: Filling out the Questionnaire is free. There is no time limit. At the end, you may decide whether or not to purchase.
Justin,
Thanks for sharing this. I am also interested in incorporating (maybe soon). And, I am also going for an LLC. But I have a question, and hopefully you've come across the same and know the answer.
Can I have an LLC and have it as "umbrella" company? What I mean is this: I do Tech consulting on the side - database management & development (SQL Server specifically). I want to have that in my company as service obviously. But the other thing is, I have a blog and an upcoming one that I want to earn from also. Can I put these blogs also under the same LLC? These 2 blogs are not related - content-wise - to my consulting services. So can I have something like "consulting services & other services".
Thanks for the input. Thanks in advance for other readers who may want to answer my question
:-)
Hi Justin,
Do you think it is necessary to form an LLC if my blog will only be monetized by ads and affiliates?
Todd,
I wouldn't say that it is absolutely necessary to form an LLC in your case. But if you intend to grow and expand yourself and your blog in a business sense, then I would say that you should eventually do it.
You are a blogger and you are performing a service for others and you are promoting affiliate products so pay the little amount that is necessary to safeguard yourself.
I wouldn't suggest it unless I had already tested the waters myself.
Justin,
Thanks for the advise. I've never formed a company with legal zoom (always went old school), but I'll be sure and give it a whirl next go-round.
thanks bud!
Jason,
I probably could of done it myself or hired someone but I wanted to try Legal Zoom for some time now.
All that I can say is that I am very pleased with Legal Zoom.
Justin,
This is so timely! I'm going to be forming an LLC soon as my book will be coming out soon. I had been considering using Legal Zoom but hadn't researched it. You've done it for me. Thank you!!
Angela,
Can't wait for your book, I will be the first in line to buy it.
I also have an invention that I've been working on and I will use Legal Zoom for that as well.
now, I'm curious about this invention. Any hints? :-)
It has to do with your trashcan that you place outside for pick-up.
Justin,
I incorperated as an LLC a while back, but this is great info. Often people just want to talk about the ways to "make you money" but simple steps like this and protecting yourself are very important.
Thanks for pointing this out to people.
PS: I should have used legalzoom too, it looks like the process is easier/cheaper than going through a live lawyer.
Hi Steve,
It's like getting car insurance before getting your car. LLC first and then promote your business. I preferred forming my LLC online because it saved me much time and energy that I could use for blogging instead.
Thanks for commenting.
If you have a blog or website and you are receiving money/ getting paid then it makes sense to form an LLC. You could also Incorporate as well. Check out the Legal Zoom website for more info.
Hmm, I noticed both you and Steve have a LLC, I was wondering what it was all about. So basically, it keeps you from losing all your stuff if you get sued?
Are their any other advantages? I may end up getting one too sooner or later.
There are tax advantages as well.For tax purposes, LLCs are treated more like partnerships.
Income/losses get reported on members' tax returns. LLC owners are actually called "members" instead of "partners." However, as with a partnership, an LLC files a Form 1065 with the federal government. Income or losses are reported on the members' own personal tax returns.
One-person LLCs get sole proprietor treatment. If you form an LLC with no other members, you are considered a "see-through" entity for federal tax purposes unless you request to be taxed as a corporation. You'll file a Schedule C as a sole proprietor
Every Blogger out there needs a level of protection for themselves. Forming their website/blog as an LLC would be a good place to start.
Dia,
Forming an LLC will protect all of your personal assets from potential lawsuits.
If someone decided to sue which can happen in any business your home , car , bank accounts would be off limits to them.
Consider it a type of personal protection insurance. I noticed that Steve Pavlina is under Pavlina LLC and since he is a smart guy I decided to follow suit.
Hi Justin,
I'm a little confused! What is the purpose of signing with llC? I mean how can that help your business and what do they do for you?
Thanks my friend
Hi Diana,
Thanks for your kind words and insights. I sleep a little better at night as far as my blogging business goes knowing that I am protected.
Hi Justin, very smart of you to get an LLC which like you said is essential if you are serious about building your business. I think you made the right choice to go for the Express Gold - it is best to get all the details sorted out right.
Congratulations on your new LLC and I wish you all the best in growing your blog and making money in the process!
Hi Sol,
When I started my blog my intention was that it would be a legitimate business for me. My first as well. Having an LLC provides personal protection and status that you wouldn't have otherwise.
Come to America and I will help you set up your LLC.
Getting out of a rut provides many new possibilities and experiences for you, I promise that.
You know, I've actually considered emigrating to USA, but I guess it'll have to be through relatives that live there rather than a work VISA.
..Hah, it'll all turn out fine!
Oh and by the way..
It was/is my intention to set up my blog as a business, too. Mostly because I want to make some money on my own with something I ENJOY.
No, I'd rather not be confined to 9 to 5 slavery.
Sol,
Most bloggers have the same belief as you in regards to jobs being modern day slavery.
Where do your relatives live? That would be cool if you came here.
Oh let me think...
I think they live in San Francisco. Not sure, though.
Sol,
San Francisco. Cool place from what I hear.
Oh, that does sound really interesting. Too bad I'm not American, and I'm still in an economic rut. Oh well, I'm sure it's just clearing for new things.
I will,however, remember this company in case I'll set up an LLC.
Thanks.
