This article is a summary of a YouTube video "Do This BEFORE You Set Up Your LLC" by Jim Hart

What to Consider Before Filing Your LLC

TLDRBefore filing your LLC, make sure you have a legitimate business, validate your business idea, pick a state to file in, choose a unique name, and determine a business address.

Key insights

🔑Validate your business idea by getting someone to pay for your products or services.

📝File your LLC in your own state unless you plan on getting substantial outside investment.

💡Don't stress too much about the name of your LLC as long as it's unique and not prohibited by your state.

🏢Consider using a virtual address or a mailbox service to protect your privacy.

🔒Understand that an LLC provides legal protection for your personal assets and separates them from your business assets.

Q&A

Do I need an LLC for my hobby?

If your hobby is not a legitimate business and you don't plan on earning money from it, you probably don't need an LLC.

Should I file my LLC in a different state?

In most cases, it's best to file your LLC in your own state unless you have specific reasons to file elsewhere.

Can I change the name of my LLC later?

Yes, you can change the name of your LLC later by filing a DBA or doing a formal name change in your state.

Is it necessary to use a virtual address for my LLC?

Using a virtual address or a mailbox service is not necessary but can help protect your privacy.

What is the benefit of having an LLC?

Having an LLC provides legal protection for your personal assets and limits your liability as a business owner.

Timestamped Summary

00:00Before filing your LLC, make sure you have a legitimate business and someone is willing to pay for your products or services.

05:28File your LLC in your own state unless you have specific reasons to file elsewhere.

08:59Choose a unique name for your LLC, but don't stress too much about it as long as it's available in your state.

10:21Consider using a virtual address or mailbox service to protect your privacy instead of using your home address.

11:20An LLC provides legal protection for your personal assets and separates them from your business assets.