{"id":768,"date":"2023-11-16T10:02:14","date_gmt":"2023-11-16T10:02:14","guid":{"rendered":"https:\/\/appsgeyser.io\/blog\/?p=768"},"modified":"2024-02-16T13:25:01","modified_gmt":"2024-02-16T13:25:01","slug":"how-entrepreneurs-can-use-llc-formation-to-launch-their-new-app-development-company","status":"publish","type":"post","link":"https:\/\/appsgeyser.io\/blog\/2023\/11\/16\/how-entrepreneurs-can-use-llc-formation-to-launch-their-new-app-development-company\/","title":{"rendered":"How Entrepreneurs Can Use LLC Formation to Launch Their New App Development Company"},"content":{"rendered":"\n
\"App<\/figure>\n\n\n\n

Launching a new app is one thing. Launching a business to support that <\/em>app is something else altogether, requiring a complex balance of legal and business skills. In establishing your app development company, you\u2019ll need to navigate several key decisions, not least the decision over how to structure your business.<\/p>\n\n\n\n

App development entrepreneurs have a few options to choose from here, but in most instances, the ideal structure is the LLC<\/a>, or Limited Liability Company. Indeed, before getting too deep into the app business, it may be helpful for developers to learn more about what an LLC is, how it\u2019s helpful, and how to form one.<\/p>\n\n\n\n

LLCs at a Glance<\/h2>\n\n\n\n

To begin with, then, what is an LLC?<\/p>\n\n\n\n

Every for-profit business has a legal structure. The default position is Sole Proprietorship. When you start generating revenue on the basis of self-employed work, the IRS automatically considers you to be a Sole Proprietor.<\/p>\n\n\n\n

One thing to note about Sole Proprietorships<\/a> is that they do not create any distinction between the business and the business owner<\/em>; in fact, a Sole Proprietorship does not create a new legal entity whatsoever.<\/p>\n\n\n\n

That\u2019s different with LLCs, which actually do <\/em>establish new legal entities. The upshot of this is that you can keep your personal assets and liabilities separate from your business assets and liabilities. And that\u2019s just one of several advantages of the LLC structure, making it a popular option among business owners everywhere, and app developer entrepreneurs in particular.<\/p>\n\n\n\n

Why LLCs Make Sense for App Companies<\/h2>\n\n\n\n

That raises the next question: What makes the LLC format such a prudent option for app development companies<\/a>?<\/p>\n\n\n\n

Limited Personal Liability<\/h3>\n\n\n\n

One of the most notable benefits of the LLC is that it provides safeguards for personal liability. This stems from the fact that LLCs allow you to maintain a clean line of separation between personal assets\/liabilities and business ones. Essentially what this means is that, if your app development LLC gets sued or runs afoul of an aggressive creditor, your personal assets are off the table. So, you can invest in your company while maintaining some peace of mind about your personal and familial wealth.<\/p>\n\n\n\n

Managerial Flexibility<\/h3>\n\n\n\n

Another reason to choose the LLC format is that it provides you with plenty of options for how you actually run your company. This can be invaluable for app developers, in particular, who may wish to create a structure for adaptability and change. For insurance, you may run a solo shop at the beginning, but decide to bring other partners on board as your business booms. An LLC will allow you to do so, or even to enlist a third-party management team.<\/p>\n\n\n\n

Investment Opportunity<\/h3>\n\n\n\n

LLCs convey a sense of professionalism and legitimacy, precisely because of the legal requirements for forming one. In other words, an LLC doesn\u2019t come across like a side hustle or a hobby. It comes across like a \u201creal\u201d business. This can be helpful for earning the trust of customers but it can be especially <\/em>useful for securing investors. And, LLCs can actually take out business loans or business lines of credit, something that\u2019s much more challenging for Sole Proprietorships. <\/p>\n\n\n\n

Tax Flexibility<\/h3>\n\n\n\n

One more note: When you start an LLC, your default tax status is pass-through, which means you just declare profits on your personal tax return. This is usually easy and financially advantageous for app entrepreneurs, but if your business really <\/em>booms, an LLC will allow you to opt into corporate tax status at any time.<\/p>\n\n\n\n

How to Launch an LLC<\/h2>\n\n\n\n

Clearly, there are a number of ways in which LLCs benefit app development companies. Now the question is, how can you start one?<\/p>\n\n\n\n

The steps involved can vary from state to state, but generally speaking, the process unfolds like this:<\/p>\n\n\n\n

    \n
  1. Choose a name for your app development LLC. <\/strong>You\u2019ll need to register a name that isn\u2019t already in use by another LLC in your state. However, you can also select any number of DBA (\u201cdoing business as\u201d) names, allowing you to sell apps under whatever brand name you like.<\/li>\n\n\n\n
  2. Select a Registered Agent. <\/strong>All LLCs need a Registered Agent, which can be either an individual or an organization that received legal correspondence on the company\u2019s behalf. In most states, you can hire a third-party LLC service for between $50 and $300 annually.<\/li>\n\n\n\n
  3. File Articles of Organization. <\/strong>With any legal process, there\u2019s bound to be some paperwork. Your Articles of Organization will mostly just entail basic details like your name, contact information, Registered Agent, the purpose of your business, etc. You\u2019ll also need to pay a nominal filing fee. (And just how long does it take for an LLC to be approved<\/a>? In most states, you can be up and running within days.)<\/li>\n\n\n\n
  4. Get an EIN and bank account. <\/strong>You\u2019ll want to apply for a free employer identification number from the IRS, and establish a bank account that\u2019s separate from your personal ones.<\/li>\n\n\n\n
  5. Create an Operating Agreement. <\/strong>It\u2019s also advisable to establish the basic rules and management structures of your app LLC, using a document known as the Operating Agreement.<\/li>\n<\/ol>\n\n\n\n

    Establish Success with an LLC<\/h2>\n\n\n\n

    The bottom line? LLCs provide the foundation you need to grow and scale your app development company<\/a>. Use these guidelines to get started.<\/p>\n\n\n\n

    Author Bio<\/h3>\n\n\n\n
    \"\"\/<\/figure>
    \n

    Amanda E. Clark  is a contributing writer to LLC University<\/a>. She has appeared as a subject matter expert on panels about content and social media marketing, along with topics related to small business ownership.<\/p>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"

    Launching a new app is one thing. Launching a business to support that app is something else altogether, requiring a complex balance of legal and business skills. In establishing your app development company, you\u2019ll need to navigate several key decisions, not least the decision over how to structure your business. App development entrepreneurs have a […]<\/p>\n","protected":false},"author":1,"featured_media":769,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[114],"tags":[],"class_list":["post-768","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"yoast_head":"\nHow Entrepreneurs Can Use LLC Formation to Launch New App Development Company<\/title>\n<meta name=\"description\" content=\"App development entrepreneurs have a few options to choose from here, but in most instances, the ideal structure is the LLC.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/appsgeyser.io\/blog\/2023\/11\/16\/how-entrepreneurs-can-use-llc-formation-to-launch-their-new-app-development-company\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Entrepreneurs Can Use LLC Formation to Launch New App Development Company\" \/>\n<meta property=\"og:description\" content=\"App development entrepreneurs have a few options to choose from here, but in most instances, the ideal structure is the LLC.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/appsgeyser.io\/blog\/2023\/11\/16\/how-entrepreneurs-can-use-llc-formation-to-launch-their-new-app-development-company\/\" \/>\n<meta property=\"og:site_name\" content=\"AppsGeyser\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Appsgeyser\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-16T10:02:14+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-02-16T13:25:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/appsgeyser.io\/blog\/wp-content\/uploads\/2023\/11\/App-Development-Company.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"500\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"appsgeyserio\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"appsgeyserio\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"How Entrepreneurs Can Use LLC Formation to Launch New App Development Company","description":"App development entrepreneurs have a few options to choose from here, but in most instances, the ideal structure is the LLC.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/appsgeyser.io\/blog\/2023\/11\/16\/how-entrepreneurs-can-use-llc-formation-to-launch-their-new-app-development-company\/","og_locale":"en_US","og_type":"article","og_title":"How Entrepreneurs Can Use LLC Formation to Launch New App Development Company","og_description":"App development entrepreneurs have a few options to choose from here, but in most instances, the ideal structure is the LLC.","og_url":"https:\/\/appsgeyser.io\/blog\/2023\/11\/16\/how-entrepreneurs-can-use-llc-formation-to-launch-their-new-app-development-company\/","og_site_name":"AppsGeyser","article_publisher":"https:\/\/www.facebook.com\/Appsgeyser\/","article_published_time":"2023-11-16T10:02:14+00:00","article_modified_time":"2024-02-16T13:25:01+00:00","og_image":[{"width":1200,"height":500,"url":"https:\/\/appsgeyser.io\/blog\/wp-content\/uploads\/2023\/11\/App-Development-Company.png","type":"image\/png"}],"author":"appsgeyserio","twitter_card":"summary_large_image","twitter_misc":{"Written by":"appsgeyserio","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/appsgeyser.io\/blog\/2023\/11\/16\/how-entrepreneurs-can-use-llc-formation-to-launch-their-new-app-development-company\/#article","isPartOf":{"@id":"https:\/\/appsgeyser.io\/blog\/2023\/11\/16\/how-entrepreneurs-can-use-llc-formation-to-launch-their-new-app-development-company\/"},"author":{"name":"appsgeyserio","@id":"https:\/\/appsgeyser.io\/blog\/#\/schema\/person\/176098ad519532193330d3ff95ef150d"},"headline":"How Entrepreneurs Can Use LLC Formation to Launch Their New App Development Company","datePublished":"2023-11-16T10:02:14+00:00","dateModified":"2024-02-16T13:25:01+00:00","mainEntityOfPage":{"@id":"https:\/\/appsgeyser.io\/blog\/2023\/11\/16\/how-entrepreneurs-can-use-llc-formation-to-launch-their-new-app-development-company\/"},"wordCount":936,"publisher":{"@id":"https:\/\/appsgeyser.io\/blog\/#organization"},"image":{"@id":"https:\/\/appsgeyser.io\/blog\/2023\/11\/16\/how-entrepreneurs-can-use-llc-formation-to-launch-their-new-app-development-company\/#primaryimage"},"thumbnailUrl":"https:\/\/appsgeyser.io\/blog\/wp-content\/uploads\/2023\/11\/App-Development-Company.png","articleSection":["General"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/appsgeyser.io\/blog\/2023\/11\/16\/how-entrepreneurs-can-use-llc-formation-to-launch-their-new-app-development-company\/","url":"https:\/\/appsgeyser.io\/blog\/2023\/11\/16\/how-entrepreneurs-can-use-llc-formation-to-launch-their-new-app-development-company\/","name":"How Entrepreneurs Can Use LLC Formation to Launch New App Development Company","isPartOf":{"@id":"https:\/\/appsgeyser.io\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/appsgeyser.io\/blog\/2023\/11\/16\/how-entrepreneurs-can-use-llc-formation-to-launch-their-new-app-development-company\/#primaryimage"},"image":{"@id":"https:\/\/appsgeyser.io\/blog\/2023\/11\/16\/how-entrepreneurs-can-use-llc-formation-to-launch-their-new-app-development-company\/#primaryimage"},"thumbnailUrl":"https:\/\/appsgeyser.io\/blog\/wp-content\/uploads\/2023\/11\/App-Development-Company.png","datePublished":"2023-11-16T10:02:14+00:00","dateModified":"2024-02-16T13:25:01+00:00","description":"App development entrepreneurs have a few options to choose from here, but in most instances, the ideal structure is the LLC.","breadcrumb":{"@id":"https:\/\/appsgeyser.io\/blog\/2023\/11\/16\/how-entrepreneurs-can-use-llc-formation-to-launch-their-new-app-development-company\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/appsgeyser.io\/blog\/2023\/11\/16\/how-entrepreneurs-can-use-llc-formation-to-launch-their-new-app-development-company\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/appsgeyser.io\/blog\/2023\/11\/16\/how-entrepreneurs-can-use-llc-formation-to-launch-their-new-app-development-company\/#primaryimage","url":"https:\/\/appsgeyser.io\/blog\/wp-content\/uploads\/2023\/11\/App-Development-Company.png","contentUrl":"https:\/\/appsgeyser.io\/blog\/wp-content\/uploads\/2023\/11\/App-Development-Company.png","width":1200,"height":500},{"@type":"BreadcrumbList","@id":"https:\/\/appsgeyser.io\/blog\/2023\/11\/16\/how-entrepreneurs-can-use-llc-formation-to-launch-their-new-app-development-company\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/appsgeyser.io\/blog\/"},{"@type":"ListItem","position":2,"name":"How Entrepreneurs Can Use LLC Formation to Launch Their New App Development Company"}]},{"@type":"WebSite","@id":"https:\/\/appsgeyser.io\/blog\/#website","url":"https:\/\/appsgeyser.io\/blog\/","name":"AppsGeyser","description":"Free apps that earn you money","publisher":{"@id":"https:\/\/appsgeyser.io\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/appsgeyser.io\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/appsgeyser.io\/blog\/#organization","name":"AppsGeyser","url":"https:\/\/appsgeyser.io\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/appsgeyser.io\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/appsgeyser.io\/blog\/wp-content\/uploads\/2022\/08\/14.png","contentUrl":"https:\/\/appsgeyser.io\/blog\/wp-content\/uploads\/2022\/08\/14.png","width":1200,"height":1200,"caption":"AppsGeyser"},"image":{"@id":"https:\/\/appsgeyser.io\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Appsgeyser\/"]},{"@type":"Person","@id":"https:\/\/appsgeyser.io\/blog\/#\/schema\/person\/176098ad519532193330d3ff95ef150d","name":"appsgeyserio","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/appsgeyser.io\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/1f6b2bede82faa2610b3b6ad91c63b8d8937e1b3185df7c10003e330a261ce83?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/1f6b2bede82faa2610b3b6ad91c63b8d8937e1b3185df7c10003e330a261ce83?s=96&d=mm&r=g","caption":"appsgeyserio"},"sameAs":["https:\/\/appsgeyser.io\/blog"],"url":"https:\/\/appsgeyser.io\/blog\/author\/appsgeyserio\/"}]}},"_links":{"self":[{"href":"https:\/\/appsgeyser.io\/blog\/wp-json\/wp\/v2\/posts\/768","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/appsgeyser.io\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/appsgeyser.io\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/appsgeyser.io\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/appsgeyser.io\/blog\/wp-json\/wp\/v2\/comments?post=768"}],"version-history":[{"count":2,"href":"https:\/\/appsgeyser.io\/blog\/wp-json\/wp\/v2\/posts\/768\/revisions"}],"predecessor-version":[{"id":969,"href":"https:\/\/appsgeyser.io\/blog\/wp-json\/wp\/v2\/posts\/768\/revisions\/969"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/appsgeyser.io\/blog\/wp-json\/wp\/v2\/media\/769"}],"wp:attachment":[{"href":"https:\/\/appsgeyser.io\/blog\/wp-json\/wp\/v2\/media?parent=768"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/appsgeyser.io\/blog\/wp-json\/wp\/v2\/categories?post=768"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/appsgeyser.io\/blog\/wp-json\/wp\/v2\/tags?post=768"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}