In 2022, I found myself at a crossroads. I had just started a contract position at Paramount with a six-month deal that, like many contracts in our industry, came with no guarantees beyond the initial term. Despite working at a major studio, I was mindful of my finances and knew I needed to think ahead. That’s when I decided to start my own business and register it as an LLC.

Initially, I established a production company. My thinking was clear: with the uncertainty of freelance work always looming, I wanted to protect myself while creating a clear separation between my work income and personal expenses. While my journey at Paramount eventually led to a staff position (temporarily putting my freelance production work on pause), having that LLC opened doors to other opportunities I hadn’t even considered—from launching an Etsy store to creating a Shopify e-commerce store selling Print on Demand merchandise.

Fast-forward to 2024, I was among the many affected by Paramount’s mass layoffs. But here’s the silver lining: I wasn’t starting from scratch because I had already established my LLC and explored various business ventures. Instead, I was ready to dive in and focus on growing my brand and business.

Let me be real: the job market is challenging right now, making it difficult to find positions in nearly every field. However, this is actually a great opportunity to take control of your career. If you have an entrepreneurial spirit and want to start a business, forming an LLC is a fantastic first step.

The purpose of this post is simple: I want to show you exactly how possible it is to start a business on a budget, using my experience in California as a guide. While specific costs and procedures might vary by state, the fundamental principles and benefits remain the same. Let me walk you through it.

In today’s unpredictable job market, having your own LLC is like having an insurance policy for your career. I’ve experienced this firsthand—when my corporate position ended, having an established LLC meant I already had a foundation to build upon. If you’re uncertain about your future (and who isn’t these days?), want to take control of your career and financial future, or want to explore new opportunities, forming an LLC is a crucial step after you’ve decided on your business direction and done your market research.

Here’s something I’ve learned: when the job market is suffering, prices are inflated, and as we all know, “the rent is just too damn high,” people’s creativity and innovation tend to flourish. I’ve seen this in my journey—from production work to e-commerce and digital media, each economic challenge pushed me to think more creatively about business opportunities.

One of the biggest myths about starting an LLC is that you need a lot of money. The truth? The basic costs for forming an LLC are pretty reasonable!

• State filing fees typically range from $50 to $500
• Many online legal services offer LLC formation packages starting at around $100
• An EIN (tax ID) is completely free
• Basic business banking can often be set up with no monthly fees

Think of an LLC as a shield between your personal assets and your business activities. This protection alone can be worth its weight in gold. As a sole proprietor, your personal assets (house, car, savings) are at risk if something goes wrong. An LLC creates a legal barrier that protects your personal life from business liabilities.

Plus, operating as an LLC instantly boosts your professional credibility. Clients and partners take you more seriously when seeing “LLC” after your business name. This can lead to better opportunities and higher-paying contracts.

One of the best things about an LLC is its adaptability. You can:

• Start as a side hustle while keeping your day job
• Scale up or down based on market conditions
• Change your business direction without complex paperwork
• Choose how you want to be taxed (as a sole proprietorship, partnership, or corporation)

Your LLC name is more than just a label—it’s your first marketing tool. Here’s how to pick a winner:

1. Make it memorable and relevant to your industry
2. Check availability on your state’s business registry website.
3. Search domain name availability (for your future website)
4. Consider trademark issues
5. Add “LLC” or “Limited Liability Company” to the end

Pro tip: If you discover a great business name, don’t wait—reserve it right away! Most states let you hold names for just a small fee.

Don’t get nervous. It’s simpler than you think! You have two main options:

DIY Method (Most Affordable and Partially What I Did!):

1. Visit your state’s Secretary of State website (CA: SOS)
2. Download Articles of Organization forms
3. Fill out the required information
4. Submit with payment
5. Wait for approval (typically 1-3 weeks)

Using an Online Service (Still Budget-Friendly):

• Services like LegalZoom, Zen Business, or Bizee handle the paperwork
• Prices start around $100 plus state fees
• They often include extras like operating agreement templates
• Faster processing in some cases

An Employer Identification Number (EIN) is like a social security number for your business. Here’s the good news—it’s entirely free through the IRS website:

1. Visit IRS.gov
2. Fill out Form SS-4 online
3. Receive your EIN immediately
4. Use it to open bank accounts and file taxes

Separating personal and business finances is crucial. Most banks offer business checking accounts with:

• No monthly fees for maintaining a minimum balance
• Free online banking and bill pay
• Business debit card
• Mobile check deposit
• I find Nerd Wallet to be a great place to start comparing business bank accounts.

Required documents:

• EIN
• LLC formation documents
• Personal ID
• Initial deposit (often as low as $25)

Even as a single-member LLC, having an operating agreement is important. It:

• Establishes your ownership rights
• Sets business operating procedures
• Can help maintain your liability protection
• Could be required by banks or future partners

You can find free templates online or through LLC formation services. Just make sure it covers:

• Ownership structure
• Member rights and responsibilities
• Profit distribution
• Management rules
• Dissolution procedures

Understanding your tax obligations early saves headaches later:

Tax Benefits:

• Pass-through taxation (profits taxed on personal return)
• Ability to deduct business expenses
• Option to choose S-corp taxation for potential savings

Common Permits:

• Business license (if required by your city/county)
• Professional licenses for specific industries
• Home occupation permit if working from home
• Sales tax permit if selling products

– Consulting with an accountant or tax professional can greatly enhance your understanding of your tax obligations and help you set them up correctly. Their expertise will provide you with valuable insights to navigate your financial responsibilities effectively.

Drawing from my experience with multiple ventures, here are the tools I’ve found most effective for starting lean:

• Wave for accounting and invoicing (free plan available)
• Take advantage of free apps and project management systems.
• AI Tools: ChatGPT, Claude, and Midjourney (paid and free plans available)
• Canva & Kittl for design work
• Google Workspace for email and documents
• Zoom for client meetings (free plan)
• Social media for marketing

Looking back at my journey from working as a Producer at Paramount to now being a business owner, I can confidently say that starting an LLC was one of my best decisions. While my path included some unexpected turns—from production work to e-commerce and back again—having that LLC structure in place gave me the flexibility to explore opportunities while protecting my personal assets.

The current economic landscape might feel daunting, but remember: some of the most successful businesses were born during challenging times. Whether you’re currently employed, between jobs, or just starting to explore entrepreneurship, there’s no better time to take that first step.

Ready to start your LLC journey? I’d love to hear about your plans and answer any questions you might have. Comment below or reach out through our contact form. Your future self will thank you for taking action today.

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