I run a small upholstery workshop and need an LLC without extras. I've been a sole proprietor for about three years and it's time to formalize. What's the simplest way to set up an LLC for a small workshop without paying for a bunch of add-ons like registered agent services, annual report prep, or legal consultations I don't need? I'm in Ohio if that matters. I just want the basic filing and nothing else.
Upholstery
I run a small upholstery workshop and need an LLC without extras
In Ohio you can file the articles of organization directly on the Secretary of State website. It's $99. You don't need a registered agent service if you're willing to list your own address. They'll send the annuual report reminder to that address too. Just make sure you actually fill it out each year.
I did mine through the state site a couple years ago. No extras, no upsells. Took maybe fifteen minutes. Operating agreement isn't required by the state but it's not a bad idea to have one just between you and yourself if you're the only member. Nobody needs to see it.
Be careful with the registered agent thing though. If you move or change addresses you have to update it. A lot of people just use their home address and then regret it when it's public record. That's the main reason people pay for a service.
Thanks. I'm not too worried about the address being public since the workshop is in a commercial unit anyway. So it sounds like the state site is the way to go and I skip everything else.
You might still want an EIN even if you're a single-member LLC. It's free from the IRS and keeps your SSN off some paperwork. Takes ten minutes online.
Right, the EIN is separate from the state filing. The state doesn't require it but the bank usually will if you're opening a business account.
Something to think about: some of those online filing services charge $200+ for what is essentially a $99 form. They bundle registered agent and a "compliance kit" you don't need. Just go straight to the state.
Also don't forget the annual report is due by the end of April, I think. If you miss it there's a penalty and eventually dissolution. It's easy to forget when nobody reminds you except the state maielr.
I'd double check whether your county or city requires a separate business license for a workshop. That's the kind of thing that doesn't come up in LLC filing discussions but can bite you later.
I hadn't thought about local licensing. I'll look into that this week. Appreciate the heads up.
One more thing, since you're the only member: the IRS treats a single-member LLC as a disregarded entity by default. So your taxes work basically the same as sole prop unless you elect ofherwise. The LLC is mostly about liability and separating the business name.
Keep your business finances in a separate account from day one. An LLC doesn't protect you much if you're mixing personal and business money. That's probably the most important "extra" and it costs nothing.
Agree on the separate account. And keep the articles and EIN letter in a folder somewhere. You'll need them them if you ever switch banks or get a merchant account.