I have a small freelance thing going on, made about $3k last year. I want to make it official with an LLC but I literally have maybe $200 to my name after bills. Is there any way to do this without spending much? I keep seeing ads for services that cost $300+ and that's not happening. I'm in Ohio if that matters. Just looking for real advice from people who've been broke and done it anyway.
LLC Formation
I want to start an LLC but barely have any money
Ohio filing fee is $99 online. That's the cheapest you'll get. Don't pay those formation services, they just fill out the same form you can can do yourself in 20 minutes.
Yeah I did mine in PA for like $125. The form was confusing at first but there are youtube videos that walk you through the state website step by step. Saved me a couple hundred bucks.
Thanks. I didn't realize the state fee was that low. I was looking at legalzoom and stuff and got scared off. Do I need a registered agent? That's another cost I can't really afford right now
You can be your own registered agent in Ohio. Just use your home address. No extra cost. The only downsde is your address becomes public record, which some people don't like. But if money is tight, that's the move.
Agreed. I'm my own agent. It's fine. Just remember to actually file your annual report or whatever your state calls it, becuse the penalties add up fast.
Honestly with $3k revenue, an LLC might not even be worth it yet. What's the actual reason you want one? Liability? Or just to look official? Cuz a sole prop is free and you can still open a business bank account with an EIN.
Mainly liability. I do some work for clients where if something goes wrong I don't want them coming after my personal stuff. And yeaah, a little bit of wanting to look legit when I pitch bigger clients.
If it's liability you're after, an LLC is reasonable. But keep in mind a cheap LLC doesn't protect you if you're not keeping finances separate. You still need a business bank account and you can't be mixing personal and business money. That's where people get in trouble tbh.
Also chcek if your city or county requires a local business license. That's another small fee people forget. In my area it was like $40 a year. Not huge but it adds up when you're counting every dollar.
Fair enough on the liability angle. Just don't go into debt for it. If you've got $200, spend $99 on the filing and keep the rest. You can always upgrade later if the business grows.
One more thing, some credit unions offer free business checking with no mifnimum balance. That's what I did. Avoid the big banks that want $500 just to open an account.
This is all really helpful. I'm going to look at the Ohio secretary of state site tonight and just do it myself. Appreciate the reality check too about not overspending.
Good luck. Just read the instructions on the state site carefully. i messed up my first filing because I put my nickname instead of my full legal name and had to refile. Cost me an extra fee for nothing.