How to Make Your Own Company | Lovie — US Company Formation

Starting your own company is an exciting venture, but it requires careful planning and execution to ensure legal compliance and a solid foundation for growth. The process involves several key steps, from defining your business idea to registering your entity with the state and federal governments. Understanding these steps is crucial for any aspiring entrepreneur aiming to build a legitimate and successful business. This guide will walk you through the essential elements of making your own company, covering everything from selecting the right business structure to understanding ongoing compliance requirements. Whether you're considering an LLC, a C-Corp, an S-Corp, or even a DBA (Doing Business As), we'll provide clarity on the path forward. Lovie specializes in simplifying these complex processes, ensuring you can focus on what you do best: running your business.

Choose the Right Business Structure

The first critical step in making your own company is selecting the appropriate legal structure. Your choice impacts liability, taxation, and administrative requirements. The most common structures for small businesses in the US are: **Sole Proprietorship:** This is the simplest structure, where the business is owned and run by one individual, and there is no legal distinction between the owner and the business. This means the owner is personally liable for all business debts and obligations. T

Sole proprietorships and partnerships offer simplicity but lack liability protection.
LLCs provide liability protection and tax flexibility, requiring state filing.
C-Corps offer strong liability protection but face double taxation; S-Corps offer pass-through taxation.
Nonprofits focus on social missions and require IRS tax-exempt status application.
Your choice impacts liability, taxes, and administrative burdens.

Register Your Company Name

Once you've chosen your business structure, you need to select and register a name for your company. This name must be unique and comply with state naming regulations. For LLCs and Corporations, the name must typically include a designator like 'LLC,' 'Inc.,' or 'Corp.' You'll usually conduct a name search through your state's Secretary of State website to ensure the name isn't already in use. If you plan to operate your business under a name different from your personal name (for sole propriet

Ensure your business name is unique and state-compliant.
Register DBAs if operating under a name different from your legal entity or personal name.
State and county filing fees for DBAs are generally low.
Consider federal trademark registration for brand protection.

File Formation Documents with the State

This is the official step that legally creates your business entity. The specific document and filing process depend on your chosen structure and state. For **LLCs**, you'll file 'Articles of Organization' (sometimes called a Certificate of Organization) with the Secretary of State or equivalent agency in the state where you are forming your LLC. For example, to form an LLC in Wyoming, you file the Articles of Organization with the Secretary of State, and the filing fee is currently $100. The d

File Articles of Organization (LLC) or Articles of Incorporation (Corp) with your state.
Appoint a Registered Agent with a physical address in the state of formation.
Internal documents like Operating Agreements (LLC) and Bylaws (Corp) are essential for governance.
State filing fees vary; Lovie can handle these filings for you across all 50 states.

Obtain an Employer Identification Number (EIN)

An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a unique nine-digit number assigned by the IRS to business entities operating in the United States for identification purposes. Think of it as a Social Security number for your business. You'll need an EIN if your company plans to hire employees, operate as a corporation or partnership, file certain tax returns, or open a business bank account. Obtaining an EIN is a free process directly through the I

An EIN is required for businesses with employees, corporations, partnerships, and for opening business bank accounts.
Applying for an EIN directly with the IRS is free.
Form SS-4 is used to apply for an EIN.
Lovie can help obtain your EIN as part of the company formation process.

Understand Ongoing Compliance and Licenses

Making your own company doesn't end with formation. Ongoing compliance is crucial to maintain good standing with the state and federal government, and to avoid penalties. This includes filing annual reports, paying state franchise taxes or annual fees, and renewing business licenses and permits. **Annual Reports/Franchise Taxes:** Many states require businesses, particularly LLCs and Corporations, to file an annual report or pay an annual franchise tax. For example, Delaware requires LLCs and C

File annual reports and pay franchise taxes/fees to maintain good standing.
Obtain and renew all necessary federal, state, and local business licenses and permits.
Understand and fulfill all federal, state, and local tax obligations.
Compliance requirements vary significantly by state and industry.

Frequently Asked Questions

Can I make my own company without a lawyer?: Yes, you can form your own company without a lawyer. Services like Lovie streamline the process, guiding you through state filings, registered agent services, and EIN applications, making it accessible for entrepreneurs.
How long does it take to make my own company?: The time varies by state and entity type. Basic filings can take a few days to a couple of weeks. Complex formations or those requiring extensive documentation may take longer. Lovie aims for efficient processing to get your company established quickly.
What is the cheapest way to make my own company?: Forming a sole proprietorship or partnership is the cheapest initially, as there are no state formation fees. However, an LLC often offers the best balance of low cost (state filing fees) and liability protection for most small businesses.
Do I need an EIN to start my own company?: You need an EIN if you plan to hire employees, operate as a corporation or partnership, or open a business bank account. Sole proprietors without employees may not need one unless required by specific circumstances or banks.
What's the difference between an LLC and a Corporation?: An LLC offers pass-through taxation and flexible management, with members typically not liable for business debts. A Corporation is a separate legal entity with shareholders, subject to corporate taxes and potentially double taxation, but offering strong liability protection.

Start your formation with Lovie — $20/month, everything included.