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Once I decided that I was going to try and do the whole business thing, I tried to recall all my business classes from OU and Xavier to figure out what I actually needed to do. I figured the place to start was the legal structure and set up. So in college we obviously learn the difference between corporations, partnerships, sole proprietorships, LLCs, and S Corporations but we didn’t learn how to actually set one up. (Unless we did and I wasn’t paying attention). I am actually very shocked that I have two business degrees and a CPA and had no idea how to set up an LLC. I chose to set up an LLC due to limited personal liability and profits and losses flow through to my tax return.
I had no idea how to set up an LLC so I did what any normal person would do, I googled it. The first things that pop up on google are attorneys wanting to set up the LLC for you. I guess learning how to set up an LLC was reserved for law school not business school. It appears the average attorney charges $500 to $800 to set one up for you. Luckily for me I have a trusty business advisor, my dad, who instructed me on what to do. It’s actually a very simple process.
I went up to the secretary of state in Columbus and filled out the necessary form. It’s an extremely simple form. Basically you state you LLC’s name, purpose, agent, and sign a few lines. Then you take the form to the guy behind the desk and pay a filing fee of $125 in the state of Ohio. A couple days later your LLC is set up. You can go to the secretary of state’s website to check your newly formed LLC and get your charter number. The charter number is used to get a federal id number, which is equivalent to your business’s social security number. Once all the paper work is filed and you have a federal id number then you are ready to start making or losing money.
While at the secretary of state’s office I learned a few things. The normal filing fee is $125 which allows for your LLC to be set up within 3 to 7 business days but you can expedite the processing by paying more money. If you include an extra $100 it will be processed within 2 business days, an extra $200 it will be processed within 1 day, and an extra $300 it will be processed within 4 hours. It’s good information to keep in mind if you ever find yourself in need of a business extremely quickly.
Also I looked at the necessary forms to set up different business legal structures and all of them are as easy as filling out a basic form and paying a filing fee. It looks like the filing fee starts at $125 for other business legal structures.
What do you when you become a CPA and don’t like accounting? This is the exact scenario I found myself in, so I decided to go out on my own and start a business. I worked at Pricewaterhouse Coopers (PwC) for three and half years, and decided my true passion was running a business. PwC is a great firm to work for and I learned some valuable knowledge that I can apply to running a business, so I am happy I got some great experience there first. I am going to use this blog to document my journey of running a start up business.
First, I will give you some background information about myself. My name is Kendra and I graduated from Ohio University with a degree in accounting and got a job right out of college working at PwC. During my 3.5 years at PwC, I became a CPA and graduated from Xavier University with a Masters in Business Administration. After my first busy season as a Senior Associate I left to start the rocky journey of starting a business.
Some of you may be thinking you are crazy to leave a good paying job with health benefits for the unknown. My response would be you never know if something will work until you try. I figured right now was the best time in my life to give it a try; I don’t have much so I don’t have much to lose. Also I always have a college degree and my CPA to fall back on. The richest self-made woman in America, Oprah Winfrey, said it best: “The biggest adventure you can take is to live the life of your dreams.” So I figured now was as good of a time as any to leave the known for the unknown.