CWI Media, LLC
I founded my business, CWI Media, in 2005. Though, at the time, it was called CWI Media & Marketing. In 2009 the business split into two separate companies and I renamed mine CWI Media.
For years it was really an informal business, mostly freelance work for a handful of clients. Last year, however, business started picking up thanks to referrals from our existing loyal clients, so I figured it was time to get a little more serious. I updated the Web site and took control of the bank account. I got Quickbooks and started tracking all expenses, income and professional invoices.
Of course, more business meant more responsibility and more risk. That’s when I decided to make CWI Media an LLC, or limited liability company. For the most part, an LLC can protect your personal assets if the event your business is sued. However, if you are really bad and are found to commit fraud, judges have been known to come after your personal assets. Assuming you’re a law-abiding business owner, an LLC should do an adequate job of protecting you.
After deciding to move forward with getting an LLC, my first step was LegalZoom.com. I hear their ads on the radio all the time and it seemed pretty reasonable, so I fired up the computer and went to check it out.
The process was pretty straightforward and surprisingly easy. You enter some information and in about five minutes, you’re done. The economy package was only $149. Sweet! But wait, what’s this? A $100 for filing in Virginia and another $149 for using Legal Zoom as my “registered agent.” More than $400 (another $10 for shipping) for an LLC. I know that if you went to a lawyer it would cost at least $600, so it’s a pretty good deal. Still, I wasn’t willing to shell out $400 for an LLC, so I started looking at whether I could do it myself and save a few bucks.
Turns out, the LLC form for Virginia is ridiculously simple. It’s only one page. The first thing you have to do before completing the form is to call the SCC toll-free at (866) 722-2551 and see if your business name is available. I called and after navigating the easy-to-use automated system, I got to speak to a real person, who verified that my business name was available.
And just to make sure I wasn’t missing something, I asked if the form was all I needed and she confirmed. The only issue that concerned me was the “registered agent” question. Could I serve as the registered agent? She said yes, so long as I was a resident of Virginia and a member or manager of the company filing for the LLC.
If you use a lawyer or a firm like LegalZoom.com, the fee they charge to be the “registered agent” is an annual cost, which I was not willing to pay every year.
Once I completed the form, I signed and dated it, wrote a check for $100 (you can’t get around that) and mailed it to the SCC. And that was it. The whole process took less than 30 minutes.
I wish I could say that getting an LLC is as easy for every business, but it depends on a lot of other factors like how many “members” are going to be a part of the LLC, are shares freely transferrable, etc. So, before you take the same steps I took, make sure you read up on what forms you need to complete. And when it doubt, hiring a lawyer to take care of it is usually a pretty safe bet.
LegalZoom.com is actually a very affordable option if you are willing to spend that kind of money. For me, it was a little out of my price range.
It won’t be much longer before CWI Media becomes CWI Media, LLC. It may not sound like much, but to a small business owner, it’s a big step in the history of a small company.
Until next time…
