Direct sales has become a popular choice for individuals to create a full-time income, or supplement part-time income to their family. For those that choose this business path, there are many benefits: most direct sales businesses have low start-up costs, there is great flexibility in choosing work hours, you can work from home (or anywhere else that is convenient), there is minimal risk involved (meaning you might not be stuck in it long term if it doesn't work for you), most direct sales companies offer training opportunities at minimal cost, and with the diversity of social media, online sales has become easier and easier to reach a broader customer base.
According to the Direct Selling Association, 20.5 million people were involved in one way or another in direct selling in the United States in 2016, with 5.3 million of those actively building independent businesses as direct sellers (800,000 of which work full-time, and 4.5 million working part time). TotalLegal has definitely seen an increase of customers who are forming LLCs for their direct sales businesses. By forming an LLC, direct sales business owners can eliminate the risk of exposing their personal assets (home, bank accounts, etc.) to lawsuits, tax audits, and creditors. Additionally, LLCs offer tax benefits that are not otherwise available to sole proprietors.
Forming an LLC may seem like an intimidating undertaking for most people, however, TotalLegal make this process a seamless one: you answer a few questions through our online interview and we take it from there. We file your LLC with the state you are forming your business in, and once approved, we send you the formal paperwork (Articles of Organization) you need to start operating your business. We can also obtain your federal tax ID number for you.
To illustrate how easy our process is, we interviewed one of our direct sales customers about our process. Here's what Patti Minietta, LuLaRoe Fashion Consultant, had to say:
TL: What was the biggest factor in deciding to form an LLC for your independent consultant business?
Minietta: To have the protection that an LLC provides my business and to have the tax benefits.
TL: Why did you choose TotalLegal over other business formation options?
Minietta: Because that is what my tax account suggested I use.
TL: On a scale of 1 to 5 (1 being very difficult, 2 being somewhat difficult, 3 being half way difficult and easy, 4 being somewhat easy, and 5 being very easy), how would you rate the ease of forming your LLC through TotalLegal?
Minietta: 5
TL: Are there any improvements to our process that you would suggest?
Minietta: No.
Patti Minietta is a successful Lularoe retailer who sells amazing boutique style clothing. She has a large inventory of over 1500 pieces of limited edition prints ranging in ladies sizes XXS-3XL and girls sizes 2-12.
Check out her online boutique
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