LLC for Online Engineering Biz: An LLC, or limited liability company, is a business structure that can combine the pass-through taxation of a sole proprietorship or partnership with the limited liability of a corporation. This means that the owners of an LLC are not personally liable for the debts and liabilities of the LLC. An LLC also has a simpler formation process than a corporation. In most states, you only need to file articles of organization and pay a filing fee.
If you want to start an LLC for your online engineering biz, you’ll have the flexibility to work from any location, decide when to work, and make profits on the Internet.. What’s great about online biz is that you don’t have a lot of money to start it, which is a perfect option if you’re looking to get into the business world and you don’t have as much of it.
The Internet was a catalyst for the evolution of entrepreneurship — it expanded current and opened new marketplaces and business niches. Nowadays, almost every product and service is available to almost everyone online, and the barrier to begin a business was never lower.
However, low barriers and the ability to sell to everyone don’t mean online biz is easy. On the contrary, to have a successful company, you’ll need to put in a lot of hard work. You also need to develop an agile mindset in order to deal with disruptive technologies and changing business processes.
Find an Engineering Business That Resolves a Problem or Fulfills a Need
What most wantrepreneurs don’t get is that it’s not about the product, but about the market. If you want to have a thriving business, you’ll need to ensure you understand the future. In essence, you have a market for your product or service if it fulfills a burning need or helps with a certain problem people have. In other words, something that folks want either for positive or negative reasons.
Fortunately, the Internet is there to help. You can use it to research this easily:
- Go to online biz forums and see what questions and concerns people have.
- Learn a bit about Google keyword research and trends, and then see what people are looking for that doesn’t have a lot of competing websites.
- Research your competition as well. Take a look at their websites, sales funnels, copy, and design.
- Competition research also includes researching online customer reviews on websites such as BBB, Trustpilot, and social media outlet Reddit.
The Proprietor of your business or run it in partnership.
When you form an LLC, you get the easiest way of structuring your company, all while protecting your personal assets if your business goes bust or gets sued. You can also run your LLC with one or more individuals, who will then be known as “LLC members.”
LLCs that have multiple owners are known as multi-member LLCs. When you create your company as an LLC, you get various benefits:
Now you have all you need to develop a product or service for a market that already has customers — and in a better way than your competitors.
Defining the LLC
LLC, or Limited Liability Company, is a US company structure that allows you to have liability protection like with a corporation. This is because, through LLC, you get flow-through based taxes and either be a sole proprietor or in a partnership. Moreover, you’re secured against potential lawsuits.
- There’s less paperwork with LLC when we compare it to other business organizations and legal entities.
- You avoid dividend and double taxes.
- Your company will have more credibility.
Determine Where You’ll Open Your Online Engineering Biz
Now that you know what LLC is, it’s time to decide where you’ll open it. All 50 states come into play since you’re starting an online business. Keep in mind that different states have a few different regulations. For instance, if you start your business in Washington D.C, you’ll have to deal with a lot less paperwork.
However, you can also create your business in the state where you’re from. This way, you get to avoid some small expenses since you’ll register to do business from your house. Moreover, you won’t have to hire a different state’s registered agent.
Although, if your business thrives and you start to expand to different states or sell to a nationwide market, you might consider using a different state like Delaware or Nevada. Like we said, here you’ll have to deal with less paperwork but also have an easier time attracting venture capital.
3 Trending Online Engineering Biz Ideas
Let’s explore some basic business ideas to get your inspiration. The first one is e-commerce. Unlike brick-and-mortar stores, for which you need to pay thousands up front for renting, with e-commerce stores, you can start with a really small budget.
E-commerce websites also provide 24/7 potential revenue. You’ll be able to target a broad range of prospects with social media ads and SEO efforts. Every day of the year, at any given hours. A much better position than retail stores that can only work between 9 a.m. and 9 p.m.
Or, you can open a dropshipping business since online biz stores are much bigger undertakings and require larger investments. Not only do you have to develop a website and need product listings, but you also have to purchase storage and transport products across the state.
However, the dropshipping business is different. You only need to put in less work. A dropshipping store enables you to make a site and sell products, but you won’t have to keep inventory or send products yourself. Third-party wholesalers take care of the whole process for you.
You can also go freelance. As a freelancer, you’ll have multiple clients (and streams of income) and charge high for your skills. Nowadays, a lot of people are freelancers from home. If you know how to write, design, handle marketing, or sales, you’re into a treat. There are hundreds of freelancing websites online — Fiverr, Upwork, Facebook groups, Reddit, Twitter, and more.
Take Care of Your Online Engineering Biz Finances
For this, you will first need to acquire a federal tax ID number from the IRS — Internal Revenue Service. You can do this on their site as well. If you’re going as a sole proprietor or a single-member LLC, you can also decide to obtain a Social Security number instead of a federal tax ID number.
You should also open your company’s bank account when you begin your business venture. Moreover, you’ll have to process bank and card transactions right through your site, which is why a bank account should be your first priority.
