The Northwest LLC
$39 + State Fees- Free Domain Name
- Free Open Source Website
- Free Phone Line
- Free Business Email
- Free Business Address
- Free Brand Protection
Start Your LLC Right
Making a good first impression and protecting your privacy go hand in hand. You only get one shot at each.
Stay independent with Northwest. We’ve built all the pieces your LLC needs in-house to start doing business on day one, without compromising your privacy or your independence. Get an address, domain name, website, email address, and phone number for your business for free and hit the ground running.
Use our free tool to file Articles of Organization in your state.
Benefits of Starting an LLC
Liability Protection
You don’t need an LLC to do business. But you do need one to protect your assets.
It’s right there in the name—limited liability company. Here’s how it works. When you start an LLC, you create a legal entity that’s separate from you, the owner. Your LLC will have it’s own name, it’s own money, and it’s own liability.
This means that your LLC—and not you—is on the hook for business debts. If your business is sued and you have an LLC, only your LLC’s assets are at risk. Your personal assets like your home and savings are safe.
Liability protection is the key benefit of starting an LLC, but there are more reasons that LLCs are so popular among small business owners.
Privacy Protection
When you form your LLC with a privacy-forward registered agent, you can keep your personal information—like your name and home address—off the public record. Learn how we can help you Live Privately with an LLC.
Tax Flexibility
Compared to other business types, LLCs offer the most flexibility in how they’re taxed. LLCs can keep their default tax election as a disregarded entity or opt to be taxed as an S-Corp or C-Corp. Learn about S-Corp Vs. LLC.
Simple Structure
Unlike corporations, LLCs are easy to customize. Your LLC can have one owner or many. It can be managed by its owners, by hired managers, or by a combination of both. Learn more about Member vs Manager-Managed LLCs.
The LLC Guide
Starting an LLC is mostly a matter of filling out paperwork and paying fees.
You’ll form your LLC with your state government, but to actually do business, you’ll need to take care of tax paperwork with the federal government and licensing requirements with your local government.
And once it’s all done, you’ll need to take care of on-going compliance requirements—mostly remembering to file your state’s annual or biennial report.
Our LLC Guide will help you conquer each level of bureaucracy while guarding your privacy, independence, and intellectual property. Jump in!
Articles of Organization
First, you’ll form your LLC at the state level by filing Articles of Organization (called a Certificate of Organization in Connecticut, Idaho, Iowa, Maine, Nebraska, Pennsylvania, and Utah) with your state’s filing authority. In most states, this authority is the Secretary of State, though some states vary. For example, in Arizona you’ll file with the Arizona Corporation Commission.
It’s important to know that any information you provide on the Articles of Organization will be a matter of public record. So if you’re concerned about privacy, consider forming with a registered agent (like us!). A good registered agent will allow you to use their information instead of yours where applicable.
Here’s what you’ll need to do in order to file your Articles of Organization and form your LLC:
When forming an LLC, you must choose between two LLC management structures: member-managed or manager-managed. These two styles dictate who in your company may make managerial decisions and enter your LLC into legal contracts. This selection determines whether all owners (members) of an LLC may make management decisions or whether only certain owners or hired managers may make these decisions.
- Member-managed LLCs: Under this management structure all members/owners have authority to make management decisions and enter the LLC into legal contracts. This is the most common structure and is the default in most states. Member-managed LLCs are best for business’s whose members are active participants in the business.
- Manager-managed LLCs: Under this management style one or more designated managers, who may be members or outside individuals, are appointed to handle day-to-day operations. Manager-managed LLCs are often good for company’s whose members are passive investors.
Because some states (like Wyoming) require that you list the names of either your members or your managers, but not both, manager-managed structures are sometimes used to maintain the privacy of the LLC owner.
Skip the work
Our Corporate Guides® will get your LLC started today.
EIN and Taxes
Once you’ve formed your LLC at the state level, you’ll want to get a federal tax number from the IRS and decide how you’d like the IRS to treat your LLC when it comes to taxes.
1. Apply for an EIN
After starting an LLC, you’ll likely need to obtain an Employer Identification Number (EIN) from the IRS. The EIN is like a Social Security number for your LLC. Every LLC that will pay taxes or hire employees needs an EIN.
Some LLCs don’t need an EIN, but getting one is still a good idea. It helps bolster the separation between you and your business.
Get an EIN at no cost with the IRS by filing Form SS-4. Applying online on the IRS website typically takes just a few minutes.
2. Choose Your Tax Classification
By default, the IRS will treat your LLC as a sole proprietorship or a general partnership for tax purposes. Sole proprietorships and partnerships are pass-through entities. This means any income you receive from your LLC will simply be claimed on your personal income taxes.
An LLC also has the option of being taxed as an S-corp. Owners of an LLC taxed as an S-corp agree to draw a minimum salary from the LLC. That minimum income is subject to federal payroll taxes (Social Security and medicare).
However, any income above that specified salary will not be subject to payroll taxes and will instead be taxed as a distribution.
The higher your LLC’s revenue, the more likely you’ll benefit by electing to be taxed as an S-corp. Individual situations vary widely, of course, but most people will pay less in taxes as an S-corp if their LLC earns over $80,000-$100,000. To elect S-corp treatment, complete Form 2553 with the IRS within 75 days after your LLC is formed.
Licenses & Permits
When forming an LLC, many entrepreneurs focus on state-level filings but overlook the important compliance steps required at the county, city, and other local agency levels. These requirements vary based on location, but here’s an overview of the typical local requirements LLCs need to have:
Business License
In most cities and counties, you will need a general business license before you can legally operate. This license may also be called a business tax certificate or an occupational license.
The name of the specific office that issues business licenses varies from city to city and county to county, but are often The City Clerk’s Office, County Clerk’s Office, Department of Finance, or Business License Division.
For most small businesses a license will cost $30-$100 and typically must be renewed annually.
Zoning And Land Use Permits
Before you open your doors, it is important to confirm that your chosen location is zoned for the type of business you plan to run. Zoning and land use permits are handled by the local planning or zoning department.
Businesses that plan to operate out of a local store front, require construction or renovating an area, or some home based businesses require a zoning permit. To check if your LLC needs a permit, contact your local zoning department.
Sales Tax Permit
If your LLC sells goods, and in some states certain services, you will need a sales tax permit. This permit allows you to collect sales tax from customers and is usually issued by your state’s Department of Revenue.
In Texas, for example, businesses apply for a Sales and Use Tax Permit through the Texas Comptroller’s Office.
Health, Safety, and Fire Permits
Many businesses must also meet local health and safety standards. Restaurants, salons, food trucks, and gyms often require permits from the health department, while most physical business locations need to pass a fire department inspection.
In New York City, for instance, restaurants must undergo inspections by the Department of Health and Mental Hygiene before they can operate.
Resale Certificate
Sales tax is only applied to products consumed by the customer. Goods and materials purchased by businesses for resale are exempt from paying sales tax on those items. Resale certificates are how business owners get exempt from these taxes.
In some states, like Wyoming and Arkansas, you’ll need to first get your sales tax permit. In other states you’ll be able to apply for a resale certificate by itself. Present this certificate when making qualified purchases. Note: Stuff you buy to use for your business is not exempt, like office supplies.
Professional License
Certain occupations are regulated by the state and require a license to legally operate. These are professions that require a specific educational credentials and training.
Operating a business in one of these professions without a license is a serious offense and can result in criminal charges.
Fields that require a professional license include:
- Medical (doctors, nurses, psychologists)
- Legal (lawyers, judges)
- Education (teachers)
- Finance and real estate (CPAs, insurance sales)
- Engineering
- Trades (plumbers, electricians)
Check with your state to verify whether your field requires a professional license to legally operate.
State Level Reports
Most states require some kind of annual or biennial report to keep your business in good standing. Every state has a different deadline and fee.
State Initial Report
Alaska, California, Connecticut, Georgia, Louisiana, Nevada, South Carolina, and Washington all require a one-time initial report shortly after forming your LLC.
Missing this report can lead to fines or even administrative dissolution (the state closing your business).
State Annual Report
Almost all states require some form of ongoing compliance reporting (exceptions being Ohio, South Carolina, Arizona, New Mexico, Missouri, and Pennsylvania).
In most states, this is in the form of an annual report. Don’t worry, this is mostly a modest fee (though Massachusetts charges $500).
Business Licenses
Many businesses are required to hold local, state, or federal licenses or permits to legally operate. In most cases, these licenses must be renewed regularly to stay compliant.
Requirements vary depending on your industry and location, and failure to renew on time can lead to penalties or even business closure.
Form Your LLC Now
Our Corporate Guides® will get your LLC started today.
Your LLC Online
No matter what your business is, establishing an online presence is critical. Setting up a business website, getting a domain name, creating a personalized professional email address are all how people can find and interact with your business online.
Domain Name
Securing your domain name should be one of the first steps after forming your LLC. Ideally, your domain should match your business name so customers can easily find you online. At Northwest, your first domain name is free.
Business Website
Your LLC’s website acts as your online storefront. Even a simple, one-page site with your business name, contact information, and services can go a long way toward building trust. Get a free website through Northwest.
Professional Email
A dedicated business email address that uses your domain (e.g., [email protected]) signals professionalism and builds credibility. Northwest offers free business email.
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Why Choose Northwest?
Privacy By Default®
Privacy by Default® is the practice of automatically minimizing the exposure of your personal data. We shield your personal information wherever possible and never, ever sell your data to third parties. You don’t have to opt in. It’s automatic.
We’re Just Not Annoying®
Have you ever waited on hold for a refund for ten years? Or done battle with four chatbots just to talk to a person? We hate that kind of thing. Call us and we’ll pick up. If we don’t, we’ll get back to you in a few hours, tops. And unlike the state, we’ve never charged a late fee.
We Are Corporate Guides®
Our Corporate Guides have years of experience navigating state bureaucracy. They’re a mish-mash of paralegals, accountants, advisors, educators, lawyers, and business experts with insider knowledge. They know the ins and outs of every state. And they love talking shop.
We’re Independent, Like You
No investors. No debt. No third-party “partners.” We don’t outsource our services to anyone, and we’re beholden to no one but you. Building and owning our own services means we have more control, and that means we can give you more control. Stay independent.
The Northwest LLC FAQs
The beauty of the limited liability company is the lack of annual meetings. Corporations are usually required to have them. Granted, no one really is out there checking if a private corporation is holding annual meetings, but there are no annual meeting requirements with an LLC.
A multi-member Limited Liability Company may choose to hold annual meetings to go over the specifics of the LLC, but it is not required. You can call a meeting at any time with the other members.
If you’re a single-member limited liability company, it’s basically you just documenting changes if you need to. It’s really not as complicated as it may sound. The big reason why single owners choose an LLC is that there aren’t really voting requirements for decisions, and there aren’t officer roles that you would have to fill out on paper, as with a corporation.
Get the Northwest LLC
Domain name, website, email, and phone line all included.
A limited liability company (LLC) is a business structure that legally separates the legal liabilities of a business from it’s owner. It is a hybrid business structure that has elements of both partnerships and corporations.
The benefits of the LLC structure include:
- Flexibility: LLCs allow for multiple management structure and taxation options.
- Liability protection: Like a corporation, LLCs offer limited personal liability, meaning the LLC protects your personal assets from debts and legal obligations of the business.
- Privacy: When formed and managed in conjunction with a commercial registered agent, an LLC offers a considerable amount of privacy.
- Simplicity: LLCs have fewer guidelines and procedures to follow than a corporation.
- Affordability: An LLC is relatively inexpensive to form and maintain. State fees to form an LLC vary, but are generally $100-$300.
An LLC is considered an ideal business structure for small business because it provides limited liability and multiple tax election options while remaining affordable to form and maintain.