New Clients | Lovie — US Company Formation & Business Services

Starting a new business is an exciting endeavor, and Lovie is here to ensure your legal foundation is as strong as your vision. For entrepreneurs and small business owners, the process of officially forming an entity like an LLC or Corporation can seem daunting. We specialize in simplifying this crucial step, allowing you to focus on what you do best: growing your business. Our services are designed for new clients who need a clear, efficient path to legal registration across all 50 U.S. states. This guide is crafted to provide new clients with essential information, from understanding entity types to the practical steps involved in formation. Whether you're considering an LLC in Delaware, a C-Corp in California, or a DBA in Texas, Lovie offers the expertise and tools to make it happen smoothly. We demystify the paperwork, state filing fees, and compliance requirements, ensuring you make informed decisions right from the start.

Choosing the Right Entity Structure: An Overview for New Clients

As a new client embarking on your entrepreneurial journey, selecting the correct legal structure for your business is a foundational decision. The most common choices for new businesses include the Limited Liability Company (LLC), the S Corporation, and the C Corporation. Each offers distinct advantages regarding liability protection, taxation, and administrative requirements. An LLC, for instance, is popular among new clients for its flexibility and pass-through taxation, meaning profits and lo

LLCs offer liability protection and pass-through taxation, ideal for many new businesses.
C Corporations are separate entities, suitable for businesses seeking investment but face double taxation.
S Corporations provide pass-through taxation benefits but have specific eligibility rules.
DBAs allow operation under a trade name, with varied state and local filing requirements.

Forming an LLC: A Step-by-Step Guide for New Clients

For new clients, the Limited Liability Company (LLC) is often the most straightforward and advantageous entity to form. The process generally begins with selecting a state for formation. While you can form your LLC in any state, it's often most convenient to form it in the state where you primarily conduct business. However, states like Delaware, Nevada, and Wyoming are popular choices for new clients nationwide due to their established business laws, privacy protections, and sometimes lower fee

Choose a state for formation and ensure your business name is available and compliant.
Appoint a Registered Agent with a physical address in the state of formation.
File the Articles of Organization with the state, paying the required filing fee (e.g., $70 in CA, $300 in TX).
Consider an Operating Agreement to define ownership and management roles.

Essential IRS Filings for New Business Clients

Once your business entity is legally formed, new clients must address crucial requirements with the Internal Revenue Service (IRS). The most fundamental step for most new businesses is obtaining an Employer Identification Number (EIN), also known as a Federal Tax Identification Number. An EIN is like a Social Security number for your business and is required if you plan to hire employees, operate your business as a corporation or partnership, file certain tax returns, or open a business bank acc

Obtain a free EIN from the IRS for tax identification and banking purposes.
LLCs are typically taxed as disregarded entities (sole owner) or partnerships (multiple owners).
Elect S-Corp or C-Corp tax status by filing specific IRS forms like Form 2553.
Understand annual filing requirements (e.g., Form 1120 for C-Corps, 1120-S for S-Corps).

The Role of a Registered Agent for New Business Clients

A cornerstone of maintaining legal compliance for any business entity, especially for new clients, is the proper designation and maintenance of a Registered Agent. Every state requires businesses registered as LLCs, corporations, or other formal entities to have a Registered Agent. This individual or company serves as the official point of contact for receiving critical legal documents, such as service of process (lawsuit notifications), state correspondence, and tax notices. The agent must have

A Registered Agent is mandatory for LLCs and corporations to receive legal and state documents.
The agent must have a physical address in the state of formation and be available during business hours.
Professional Registered Agent services offer privacy, reliability, and compliance assurance.
Failure to maintain a Registered Agent can result in administrative dissolution.

Opening a Business Bank Account: A Key Step for New Clients

A critical step for any new client after forming their business entity is establishing a dedicated business bank account. Commingling personal and business funds is a common mistake that can jeopardize the liability protection afforded by your LLC or corporation. It also makes bookkeeping and tax preparation unnecessarily complicated. To open a business account, banks will typically require proof of your business's legal existence. This usually includes your formation documents filed with the st

Separate business and personal finances to maintain liability protection and simplify accounting.
Required documents typically include formation documents and your EIN.
Evaluate banks based on fees, minimums, services, and accessibility.
Consider business credit cards to build business credit history.

Maintaining Compliance and Planning for Growth as New Clients

Forming your business entity is just the beginning; ongoing compliance is essential for long-term success, especially for new clients. This includes adhering to state-specific annual report filing requirements, renewing licenses and permits, and staying current with tax obligations at federal, state, and local levels. For instance, many states require annual reports to be filed by a specific deadline, often tied to the anniversary of formation or a fixed date like June 30th. Failure to comply ca

Stay current with state annual reports, licenses, permits, and tax filings.
Amend formation documents as needed for changes in business structure or information.
Consider entity conversions for significant growth or funding needs.
Understand employment laws and tax obligations when hiring staff.

Frequently Asked Questions

What is the fastest way for a new client to form an LLC?: The fastest way is typically to file online with the Secretary of State in your chosen state and use a professional Registered Agent service. Lovie offers expedited processing in many states to help new clients form their LLC quickly.
Do new clients need an EIN if they are a single-member LLC?: While not always mandatory by the IRS for tax reporting if you don't have employees, an EIN is highly recommended for new clients. You'll need it to open a business bank account and is required for most other business activities.
What are the typical ongoing costs for a new business client?: Ongoing costs include state annual report fees (e.g., $100-$500 annually in many states), Registered Agent fees ($100-$300 annually), business licenses/permits, and professional service fees (accounting, legal).
Can new clients form a business in a state where they don't live?: Yes, new clients can form an LLC or corporation in any U.S. state, regardless of residency. However, you will likely need to register as a 'foreign entity' in states where you actively conduct business.
How long does it take for an LLC to be officially formed?: Processing times vary by state. Some states, like Delaware or Nevada, can process filings in 1-3 business days, while others, like California, may take 7-10 business days or longer, especially during peak periods.

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