Tag: LLC

IS YOUR GIG JOB(s) A LLC?

In this day of the ultimate gig economist, contracted worker, independent contractors, digital nomads, etc., if you fall in any of these categories it is a must you establish your business construct as a LLC. Now, let me preface this with that I am not a financial advisor nor am a business lawyer, these are simply my opinions drafted from my own personal experiences, research, and conclusions. You are free to do what best fits your need, I just want you all to weigh your options so that you:

  1. Protect your employment
  2. Grant yourself some job security.
  3. Be cost effective. maximize your earrings, and cost savings.
  4. Take full advantage of the rewards and opportunities that serve businesses more than individuals.
  5. Limit co-mingling and maintain good bookkeeping.

What is a LLC.? LLC stands for Limited Liability Company which is a corporate structure in the United States whereby the owners are not personally liable for the compan’s debts or liabilities. They have the characteristics of a corporation with those of a partnership or sole proprietorship. Every state differs a bit but the benefits outweigh any other option if you’re an individual (sole proprietor) owner of a company.

Why to create a LLC. compulating all your gig jobs allowing your LLC. to serve as an umbrella/cover (insurance policy) over your businesses. Establishing a LLC. is releatively easy and cost less than $500 which includes everything, but I will explain how to later in this blog. You want to create a LLC. for legal protection, but mainly to use as leverage for your own personal and business finances. Once LLC. is established you can easily acquire the following:

  1. Fuel Cards: these are really good for bookkeeping purposes and you save more money on fuel cost. Most of us are using our own vehicles to complete these gigs.
  2. Electronics: when you use your business credit for tools i.e. phones, computers, laptops, instruments, apps, etc. you can really build business credit and save build using entities such as Dell, Apple, Microsoft etc. They are really good about extended credit which is helpful when you’re first building credit. As a digital nomad and freelance writer this is big for me because I use 2 cell phones, 1 ipad, a laptop, and numerous software. In the event I need a replacement or better equipment I’d prefer to use my LLC. business line of credit instead of straining my own.
  3. Affiliate Partnerships: this allows other businesses to see that you have established a legitimate business and there’s some accountability on your part. Hence they’ll want to do more business with you or even invest in your company.
  4. Better Tax Incentives: hands down if you run your books right and you leverage it right you’ll be able to really save! Rideshare drivers are now seeing tax laws change on mileage and tax write-offs that now is chipping away at their returns.
  5. Financial Protection: this is a highly informative area and varies from state to state so I suggest you research this area for yourself, but to summarize it’s better someone come after your company than you as an individual!
  6. Multiple Streams of Income: self-explanatory, you can structure your business in such diverse ways that allows you to create content, passive income, and merchandise.
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In short I will outline what you need to become established as an LLC., now this is a generic listing being certain requirements differ in various states some more lenient while others can be heavy-handed in acquiring; overall it’s still relatively easy. Ok to get started I suggest the following in this order:

  1. Business Name (make sure you verify it hasn’t been trademarked at
    http://tmsearch.uspto.gov/bin/gate.exe?f=searchss&state=4801:opytx7.1.1 from the https://www.uspto.gov/trademark website for trademarks and patents.
  2. Logo: create an unique logo easily for cheap on http://www.fiverr.com
  3. Purchase a Virtual Office: includes actual address and business line this will vary in need contingent on your business structure.
  4. Website & Domain Name: you can purchase this for cheap, no need to be fancy, you can always upgrade, keep it simple to like a landing page or 2-3 pages listing products/service, about page, and pricing. Again keep it simple.
  5. Bio: this needs to be professionally done, you’ll be surprise how many seeks out your credentials. This needs to be short, sweet, but highly informative. FYI I do these professionally part of my http://www.knbresume.com business. If you need one I’d love to write one up for you.
  6. Certificate of Organization: you usually obtain this through the Secretary of State (you must have this for a DUNS# and Business Checking account)
  7. EIN#, Duns & Bradstreet Number: this is your tax i.d. AND IT IS FREE (beware of sites that charge, only go to the IRS website
    https://www.irs.gov/individuals/international-taxpayers/taxpayer-identification-numbers-tin after received apply for your DUNS# at
    https://www.dnb.com/ this will allow you not to have to use yourself as a personal guarantee to obtain business credit. Both are free!
  8. Legal Docs: this simple depending on your business, start off with Release of Liability forms, and Non-Disclosures. These help protect you and your intellectual properties.