Making a Company | Lovie — US Company Formation Experts

Making a company is a significant step for any entrepreneur, marking the transition from an idea to a tangible business entity. This process involves crucial decisions about legal structure, registration, and compliance. Understanding each stage is vital for building a solid foundation that supports growth and protects your personal assets. Whether you're forming a sole proprietorship, a Limited Liability Company (LLC), a C-Corporation, or an S-Corporation, the fundamental steps share common threads, but the legal and tax implications vary significantly. This guide will walk you through the essential considerations when making a company in the US. We’ll cover choosing the right business structure, registering your business with state and federal authorities, understanding ongoing compliance requirements, and how services like Lovie can streamline the entire process. By the end, you’ll have a clear roadmap for successfully making a company and setting it up for long-term success.

Choosing Your Business Structure: LLC, Corporation, or Other?

The first critical decision when making a company is selecting the appropriate legal structure. This choice impacts liability, taxation, administrative burden, and fundraising capabilities. The most common options for entrepreneurs include Sole Proprietorships, Partnerships, Limited Liability Companies (LLCs), S-Corporations, and C-Corporations. A Sole Proprietorship is the simplest structure, where the business is owned and run by one individual, with no legal distinction between the owner and

Understand the liability and tax implications of Sole Proprietorships and Partnerships.
LLCs offer personal liability protection and pass-through taxation, ideal for many small businesses.
C-Corporations provide strong liability protection and are suitable for fundraising but face double taxation.
S-Corporations offer pass-through taxation but have strict eligibility requirements.
State filing fees for LLCs and Corporations vary significantly, from $50 to over $800.

Registering Your Business Name: From DBA to Trademark

Once you've chosen a business structure, selecting and registering a name is paramount. Your business name is your brand identity. The type of registration depends on your structure and how you plan to operate. For sole proprietorships and general partnerships operating under a name different from the owner's legal name, you'll likely need to file for a 'Doing Business As' (DBA) name, also known as a fictitious name or trade name. This is a state or county-level registration that allows you to

Use a DBA (Doing Business As) for sole proprietorships/partnerships operating under a trade name.
LLC and Corporation names are registered during state formation and must be unique within that state.
Check business name availability on your state's Secretary of State website.
Federal trademark protection (USPTO) offers nationwide rights for your brand name and logo.
DBA registration costs are typically under $100, while trademarking can be significantly more.

Federal and State Registration: EIN and Licenses

Making a company official involves registering with both federal and state authorities. The primary federal requirement for most businesses is obtaining an Employer Identification Number (EIN) from the IRS. An EIN, also known as a Federal Tax Identification Number, is like a Social Security number for your business. It's required if you plan to hire employees, operate your business as a corporation or partnership, file certain tax returns, or operate a Keogh plan. Fortunately, obtaining an EIN i

Obtain a free Employer Identification Number (EIN) from the IRS for most business structures.
LLCs and Corporations must file formation documents with the Secretary of State in their chosen state.
State filing fees for LLCs and Corporations can range from $50 to over $800.
Research and obtain all necessary federal, state, and local licenses and permits.
Non-compliance with registration and licensing can lead to fines and operational shutdowns.

Ongoing Operational Requirements and Compliance

Making a company isn't a one-time event; it requires ongoing attention to operational requirements and compliance to maintain good standing. For LLCs and Corporations, this often includes annual reports and franchise taxes. Many states require businesses to file an annual report to update their information with the Secretary of State. For example, California requires LLCs and Corporations to file a Statement of Information every two years, with a fee of $20. Delaware, known for its business-frie

File annual reports and pay franchise taxes as required by your state (e.g., Delaware's $300 annual tax).
Understand and meet federal, state, and local tax filing obligations based on your business structure.
Maintain a registered agent in your state of formation to receive legal and official notices.
Stay updated on labor laws, industry regulations, and other compliance requirements.
Lovie offers registered agent services to ensure you meet this critical compliance need.

Funding Your Company: Options and Considerations

Making a company requires capital, and understanding your funding options is essential for growth. The best approach depends on your business stage, industry, and financial needs. Personal savings and bootstrapping are common starting points, where founders invest their own money. This offers complete control but limits the scale of initial investment. Friends and family can be a source of early-stage funding. Loans or equity investments from your network can provide crucial seed capital. It's

Bootstrapping (personal savings) offers control but limits initial capital.
Formalize loans or investments from friends and family with clear agreements.
SBA-guaranteed loans can be more accessible than traditional bank loans for startups.
Angel investors and VCs provide capital for equity, often requiring a C-Corp structure.
Crowdfunding offers diverse options for raising capital from the public.

Frequently Asked Questions

What is the fastest way to make a company?: The fastest way to make a company often involves forming an LLC online through a formation service like Lovie. Many states allow for online filing, and some services offer expedited processing for an additional fee, potentially completing the process in 1-3 business days.
Do I need a lawyer to make a company?: While not legally required in most cases, consulting a lawyer can be beneficial for complex structures or specific legal advice. For standard LLCs or corporations, using a reputable formation service like Lovie can handle the filing process efficiently and affordably.
What are the main differences between an LLC and a Corporation?: An LLC offers pass-through taxation and limited liability, generally with less formality. A C-Corporation offers strong liability protection and is structured for raising capital via stock sales but faces double taxation. An S-Corp is a tax election for eligible corporations offering pass-through taxation.
How much does it cost to make a company?: Costs vary by state and business structure. State filing fees for LLCs and corporations typically range from $50 to $800. Additional costs include registered agent fees ($100-$300 annually), potential legal or accounting fees, and business licenses/permits.
What is a registered agent, and why do I need one?: A registered agent is a person or entity designated to receive official legal and government documents on behalf of your business. You need one in the state where your LLC or corporation is registered to ensure you receive important notices and maintain compliance.

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