LLC Setup Checklist for Freelancers — SoloStack https://solostack.madethis.app/resources/freelance-llc ================================================================ Use this checklist to form and set up your LLC correctly the first time. Each section covers a distinct phase — work through them in order. ================================================================ SECTION 1: PRE-FORMATION CHECKLIST (Do This Before You File Anything) ================================================================ [ ] 1. NAME AVAILABILITY CHECK Go to your state's Secretary of State website. Search the business name database for your desired LLC name. Your name must include "LLC" or "Limited Liability Company." Make sure no existing business has the same or confusingly similar name in your state. Find your state's SOS at: https://www.usa.gov/state-secretary [ ] 2. TRADEMARK SEARCH Search at USPTO.gov (free): https://tmsearch.uspto.gov Search for your business name and any close variations. A state LLC registration does NOT protect you against federal trademark infringement — check USPTO separately. (You don't need to register a trademark; just check for conflicts.) [ ] 3. STATE SELECTION Options: → Your home state: Simplest; no foreign registration needed → Wyoming: Cheap ($100), strong privacy protections, no state income tax → New Mexico: Cheapest ($50), no annual report required → Delaware: Popular for investors/corporations; adds complexity for solo freelancers who don't live there Recommendation: Form in your home state unless you have a specific reason not to. Out-of-state formation requires a foreign registration in your home state anyway — doubling costs. [ ] 4. REGISTERED AGENT DECISION A registered agent receives official legal and government mail for your LLC. Options: → Be your own registered agent (free in most states): Use your home or business address. Note: your address becomes public record. → Use a paid service ($50–$300/yr): Companies like Northwest Registered Agent, Harbor Compliance, etc. Keeps your home address off public records. Worth it if privacy matters to you. You do NOT need ZenBusiness or LegalZoom for this. Many cheaper and better options exist. [ ] 5. OPERATING AGREEMENT DRAFT Prepare a basic operating agreement before or immediately after filing. For a solo (single-member) LLC, a one-page document is fine. It should cover: → Member name and ownership percentage (100% if you're the only member) → LLC's business purpose → How profits/losses are distributed → How decisions are made → What happens if you dissolve the LLC Free templates available online; search "single-member LLC operating agreement template [your state]." ================================================================ SECTION 2: FORMATION WEEK CHECKLIST (Do This to Officially Create Your LLC) ================================================================ [ ] 1. FILE ARTICLES OF ORGANIZATION Go to your state Secretary of State's website. Look for "Form an LLC" or "Business Registration." Fill out Articles of Organization (sometimes called Certificate of Organization or Certificate of Formation). Required info: LLC name, registered agent name + address, business address, member/manager names. [ ] 2. PAY STATE FILING FEE Fee range: $50 (New Mexico, Wyoming) to $500 (Massachusetts). Most states: $75–$200. Pay online by credit card when you file. Keep the receipt. State fee reference (see freelance-llc-checklist.txt Section 3 for a full 10-state breakdown). [ ] 3. GET YOUR EIN FROM IRS.GOV Apply at: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online Takes 5 minutes. Free. Instant. Your EIN is like a Social Security Number for your LLC. You need it for: business bank accounts, 1099 reporting, hiring contractors, and filing your return. NEVER pay a third party to obtain an EIN — it's free directly from the IRS. [ ] 4. OPEN A BUSINESS BANK ACCOUNT Required to maintain liability protection. Bring: Articles of Organization, EIN confirmation letter, and government-issued ID. Good options for freelancers: → Mercury (mercury.com) — free, no minimums, great for freelancers → Relay (relayfi.com) — free, no minimums, built for small business → Local credit union — often free accounts with personal service → Avoid: Chase, Bank of America, Wells Fargo for basic accounts (often have minimum balance requirements and monthly fees) [ ] 5. ORDER A BUSINESS DEBIT CARD Most business bank accounts include a debit card. Use ONLY this card for business purchases. Never use your personal debit/credit card for business expenses. [ ] 6. SET UP BASIC BOOKKEEPING Don't wait on this — start clean from day one. Options: → Wave (free): wave.com — great for solo freelancers → QuickBooks Self-Employed (~$15/mo): good Turbo Tax integration → Spreadsheet: works fine early on — track income + expenses monthly Rule: Every business transaction gets recorded. Every receipt gets saved (photo it with your phone). ================================================================ SECTION 3: FIRST 90 DAYS CHECKLIST (Do This After Your LLC Is Active) ================================================================ [ ] 1. UPDATE ALL CONTRACTS TO LLC NAME Any future contracts should be signed by "[Your LLC Name]" not your personal name. Update your contract templates to reflect the LLC as the contracting party. See: /resources/freelance-contract-guide [ ] 2. UPDATE YOUR INVOICES All invoices should show your LLC name, not just your personal name. Update your invoice template header and "remit payment to" field. See: /resources/freelance-invoice-tips [ ] 3. NOTIFY EXISTING CLIENTS Send a brief, professional note to active clients: "Going forward, all work will be handled through [LLC Name]. Please update your records — invoices will now come from [LLC Name] and payments should be made to the business account. My contact info and work quality are unchanged." [ ] 4. UPDATE LINKEDIN / PORTFOLIO Update your LinkedIn profile to show your LLC name (or DBA name) as your business. Update your portfolio website's footer, about page, and contact form. This builds credibility. [ ] 5. BUSINESS EMAIL (OPTIONAL BUT RECOMMENDED) Consider setting up a professional email: → yourname@yourllc.com (uses Google Workspace ~$6/mo) → yourname@yourdomain.com (via Namecheap or similar) Using a professional email vs. Gmail increases perceived legitimacy with higher-value clients. [ ] 6. MARK ANNUAL REPORT DUE DATE IN YOUR CALENDAR Find out when your state's annual report is due. Set a calendar reminder 30 days before the due date. Missing this can result in administrative dissolution. (See your state's SOS website for due dates and fees.) [ ] 7. CONSULT A CPA ABOUT S-CORP ELECTION If you're consistently earning $80,000+ in net profit: → Schedule a consultation with a CPA who works with freelancers → Ask specifically about S-corp election benefits for your situation → Review timing requirements (Form 2553 has a strict deadline) → See: freelance-scorp-calculator.txt for the math ================================================================ SECTION 4: ONGOING ANNUAL CHECKLIST (Repeat Every Year to Stay in Good Standing) ================================================================ [ ] 1. FILE ANNUAL REPORT Due date varies by state (often January–April). Pay any required fee ($0–$150 depending on state). This is non-negotiable — missing it can dissolve your LLC. [ ] 2. RENEW REGISTERED AGENT If using a paid registered agent service, confirm renewal. If you're your own registered agent, verify address is current with the state. [ ] 3. RECONCILE BUSINESS BANK ACCOUNT Review all deposits and expenses for the year. Confirm all income went through business account. Confirm no personal expenses hit the business account. Generate a P&L (profit and loss) report from your accounting software. [ ] 4. REVIEW AND UPDATE OPERATING AGREEMENT Update if: you changed your business activities, added members, changed ownership, or had significant structural changes. Even if nothing changed, a quick annual review is good practice. [ ] 5. FILE TAXES (SCHEDULE C OR FORM 1120-S) Default LLC → Schedule C on your personal Form 1040. S-corp LLC → Form 1120-S (separate business return) + Schedule K-1 + personal Form 1040. Deadline: April 15 (or October 15 with extension). Consider a CPA if your income exceeds $80k — the deduction optimization alone often pays for the cost. ================================================================ SECTION 5: COMMON MISTAKES TO AVOID ================================================================ ✗ MIXING PERSONAL AND BUSINESS FUNDS The #1 mistake. If you pay personal bills from your business account (or vice versa), courts can "pierce the corporate veil" and hold you personally liable for business debts. Keep them completely separate. Always. No exceptions. ✗ MISSING THE ANNUAL REPORT Most states require an annual report and a small fee ($50–$150). Failure to file can result in administrative dissolution of your LLC — meaning you lose your liability protection without knowing it. Set a calendar reminder. ✗ NOT HAVING AN OPERATING AGREEMENT Many states don't require one, but you should always have one. Without it, your state's default LLC rules apply to any dispute — which may not reflect your intentions. Even a one-page document is dramatically better than nothing. ✗ USING YOUR PERSONAL HOME ADDRESS PUBLICLY When you file Articles of Organization, your registered agent's address (often your home address) becomes public record in most states. If privacy is a concern, use a paid registered agent service ($50–$150/yr) or a UPS mailbox instead of your home address. ✗ NOT UPDATING CONTRACTS AND INVOICES After forming your LLC, all contracts and invoices should be issued under the LLC name. If you continue signing as a sole proprietor, you're undermining the legal separation the LLC was designed to create. Update your templates immediately after formation. ================================================================ FREE RESOURCES FROM SOLOSTACK ================================================================ This checklist is free to use and share. More free guides at: https://solostack.madethis.app/resources • LLC vs. Sole Proprietor Guide → /resources/freelance-llc • LLC vs. Sole Proprietor Checklist → freelance-llc-checklist.txt • S-Corp Election Calculator → freelance-scorp-calculator.txt • Freelance Taxes Guide → /resources/freelance-taxes-guide • Freelance Contract Guide → /resources/freelance-contract-guide For the full template library (invoices, proposals, SOPs, and more): https://solostack.madethis.app/lp/freelance-templates ================================================================ Disclaimer: This checklist is for informational purposes only and does not constitute legal or tax advice. LLC rules vary significantly by state. Consult a qualified attorney and/or CPA for guidance specific to your jurisdiction and situation. ================================================================