LLC Formation Guide for Solo Beauty & Wellness Businesses
Protect your personal assets and look more professional — for as little as $50.
Should you form an LLC for your nail salon, massage practice, or esthetician business? Short answer: probably yes.
An LLC (Limited Liability Company) protects your personal assets if something goes wrong — and it only costs $50-300 to set up in most states.
Why Form an LLC?
- ✓Personal asset protection: Your house, car, and savings are protected if your business gets sued
- ✓Professional image: "Sarah's Nail Salon LLC" looks more established than operating under your personal name
- ✓Tax flexibility: Choose how you want to be taxed (sole proprietor, S-corp, etc.)
- ✓Easier banking: Open a business bank account and credit card
At a Glance
State Filing Fee
$50-300
Time to Complete
1-7 days
Annual Renewal
$0-800/year
Difficulty
Easy (DIY)
LLC vs Sole Proprietorship
If you don't form an LLC, you're automatically a "sole proprietor." Here's the difference:
| Sole Proprietorship | LLC | |
|---|---|---|
| Setup Cost | $0 | $50-300 |
| Liability Protection | None | Yes |
| Paperwork | Minimal | Some |
| Taxes | Personal return | Personal return (or S-corp) |
| Credibility | Lower | Higher |
Real talk: If a client slips in your nail salon or claims injury from a massage, an LLC means they can only go after your business assets — not your personal savings or home.
How to Form Your LLC (5 Steps)
Choose Your Business Name
Your LLC name must be unique in your state and include "LLC" or "Limited Liability Company."
Name Requirements
- ✓Must include "LLC" or "L.L.C." at the end
- ✓Must be different from existing businesses in your state
- ✓Cannot include certain restricted words (bank, insurance, etc.)
Examples:
- •Serenity Massage Therapy LLC
- •Glamour Nails by Maria LLC
- •Glow Esthetics LLC
Check Name Availability
Search your state's business database to see if your desired name is available:
SBA.gov - Choose Your Business Name - Links to all 50 state databases
File Articles of Organization
This is the official document that creates your LLC. You file it with your state's Secretary of State office.
Information You'll Need
- 1LLC name and address
- 2Registered agent name and address (this can be you)
- 3Member/owner names (just you for a solo business)
- 4Business purpose (e.g., "massage therapy services")
State Filing Fees (Examples)
Where to File
- DIY (cheapest): SBA.gov Business Registration - Links to each state's Secretary of State
- ZenBusiness: zenbusiness.com - $0 + state fees (they handle paperwork)
- LegalZoom: legalzoom.com - $79 + state fees
- Northwest Registered Agent: northwestregisteredagent.com - $39 + state fees (includes registered agent)
Tip: Filing yourself is easy if you're comfortable with paperwork. Services like ZenBusiness are worth it if you want someone to handle it for you.
Get Your EIN (Free)
An EIN (Employer Identification Number) is like a Social Security number for your business. You need it for taxes, opening a bank account, and hiring employees.
Apply for Free at IRS.gov
Takes about 10 minutes online. You get your number immediately.
Apply for EIN at IRS.gov →Warning: Don't Pay for EIN Services!
Some websites charge $79-199 to get you an EIN. This is a free service from the IRS. Only use IRS.gov.
Create an Operating Agreement
An operating agreement documents how your LLC operates. Even as a single-member LLC, having one strengthens your liability protection.
What to Include
- •LLC name and principal place of business
- •Member names and ownership percentages (100% for you)
- •How profits and losses are distributed
- •Member duties and powers
- •What happens if the business closes
You can find free operating agreement templates online or use the one provided by services like ZenBusiness or LegalZoom.
Open a Business Bank Account
Keeping personal and business finances separate is critical for maintaining your LLC's liability protection.
What You'll Need
- ✓EIN (from Step 3)
- ✓Articles of Organization (from Step 2)
- ✓Operating Agreement (from Step 4)
- ✓Personal ID (driver's license)
Good Banks for Small Businesses
- Chase Business Complete: No monthly fee with $2,000 balance
- Bank of America Business: No monthly fee with $3,000 balance
- Bluevine: Online bank, no monthly fees, 2% APY
- Mercury: Tech-focused online bank, free for startups
- Local Credit Union: Often lowest fees and personal service
After You Form Your LLC
Your LLC isn't a "set it and forget it" thing. Here's what to keep up with:
Ongoing Requirements
- 1.Annual Report: Most states require yearly filing ($0-300)
- 2.Franchise Tax: Some states (California, Texas) have annual taxes
- 3.Keep Records: Meeting minutes, financial records, contracts
- 4.Separate Finances: Never mix personal and business money
State-by-State Annual Costs
Here's what you'll pay yearly to maintain your LLC in popular states:
| State | Initial Fee | Annual Fee | Notes |
|---|---|---|---|
| California | $70 | $800 | Franchise Tax |
| Texas | $300 | $0 | No annual report |
| Florida | $125 | $138.75 | Annual report |
| New York | $200 | $9 | Biennial filing |
| Illinois | $150 | $75 | Annual report |
| Georgia | $100 | $50 | Annual registration |
California's $800 minimum franchise tax catches many new business owners off guard. Factor this into your first-year budget if you're in CA.
Your LLC Formation Checklist
Focus on Your Clients, Not Paperwork
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