Do you always need to establish an LLC when starting business?

[Brenden]

When starting a business, do you need to establish it as an LLC right away? Is it a requirement, or can it be skipped? If it is a requirement, does it cost anything to get an LLC going? Are there any rules and things we have to follow or do to get the LLC established? 

[James]

The proper way to do things would be to fire up the LLC first open up the separate bank account for the LLC and get to work. 

There are a lot of businesses out there that do not do this. It really all depends on the volume and how far you think you are going to go. 

I typically run everything under an LLC in this day of age because they are cheap and it helps reduce personal risk when done properly. 

LLCs are typically pretty easy to form and of course there are services out there that will happily do it for but if you understand how to read fields on a page I am sure you can figure it out. 

Different states are going to have different fees but I would say it should be less then $100 to complete the process. I would start your search at your states corporate commission to figure out how to file the paperwork. 

I know plenty of businesses that have not gone through this process though and that is the way they do it. Is it legal to do it that way? I do not know I have always tried to stay on the proper side of things and not cut corners. 

Just make sure to file the annual reporting to keep your LLC active. 

[Sophia]

You can work around not having one but it can end up being a risk later on. It is better to have one for insurance, banking, loans, and for hiring other people. You want to be able to protect your business and your assets. Do all the paperwork from the start.