Can I start an LLC without a business plan?
Asked by: Dereck Crona | Last update: November 3, 2025Score: 4.2/5 (41 votes)
Do you need a business plan to start an LLC?
Anyone is allowed to start an LLC in the state they will run the business in and you don't need business plans.
Can I make an LLC without a business?
Yes you can have a LLC without a business as well. There is no problem with that.
Can I start an LLC and do nothing with it?
Simply put, yes, you can have an LLC with no income, but that still has expenses. An LLC with no income but deductible expenses can offset future income through a net operating loss deduction. However, the IRS will still regard this as business activity, so it must be reported yearly.
Do you really need to write a business plan?
The short answer is yes. Think of it as a guide that will help you stay on track and make informed decisions. While it may seem tedious, investing time and effort into creating a well-written business plan is crucial for your success.
Don't Form an LLC until You Watch This! (3 reasons you should NOT form an LLC)
What happens if you don't have a business plan?
Skipping a business plan can actually bring financial consequences. It can bring your business down and cost you resources, which will make it harder to succeed and forcing you to spend valuable time regrouping your efforts and repairing the damage.
Is a business plan legally required?
A business plan is not a legal document. It's a tool business owners use to increase the odds that their business will be a success. Prospective entrepreneurs must make many decisions about their businesses before they can open their doors to the public.
How long can an LLC go without making money?
As an LLC, you want to be careful to try not to report losses for more than two years. Otherwise, the IRS may decide to classify your business as a hobby rather than an actual business. If this happens, you can't deduct your business expenses for tax purposes.
Can I open an LLC alone?
One of the most common types of small businesses in the U.S. is a single-owner or single-member LLC. A single-member LLC is a limited liability company that has one owner, and it is one of the most common types of small businesses in the U.S.
How much does an LLC need to make to file taxes?
You are required to file Schedule C if your LLC's income exceeds $400 for the year. If a one-member LLC does not have any business activity and does not have any expenses to deduct, the member does not have to file Schedule C to report the LLC's income.
How much money should I make before starting an LLC?
“There's no hard and fast rule,” says Keren de Zwart, a business attorney who runs Not Your Father's Lawyer out of Irvine, California, “but if your business is netting at least $60K in profits, that's usually a good time to formalize into an LLC or corporation because the tax benefits can really start to be utilized ...
What is the downside of an LLC?
Profits Taxed Individually Each Year
One possible downside of an LLC is the obligation to pay taxes on earnings. As a member of an LLC, you must pay taxes annually on your portion of the company's profits regardless if those profits remain within the business.
Do I need an LLC for side hustle?
While you can operate your side hustle as a sole proprietorship without turning it into a legal business entity, getting an LLC for your side business can provide added protection and credibility. Here, we'll give you all the reasons to consider an LLC for your side business, plus tips on when and how to get started.
What is the easiest LLC to start?
A domestic LLC is an LLC that operates within the state in which it was initially created. This is, by far, the most common form of LLC, and is generally the simplest to create and maintain.
Can you own an LLC without a business?
Yes, you can form an LLC without a business. This means creating a legal entity to protect your personal assets and prepare for future operations, even if you're not actively generating revenue or serving customers yet.
Should I start an LLC for myself?
You don't need an LLC to run a small business. However, an LLC can provide many benefits, including liability protection and tax advantages. Structuring your business as an LLC provides flexibility in tax classification.
What is a single person LLC called?
A single-member limited liability company, or SMLLC, is an LLC that's owned by one person (LLC owners are referred to as members). This is a great alternative to the sole proprietorship for anyone who's starting or running a one-person business because it provides a few advantages.
Do I need an EIN for my LLC?
An LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below. Most new single-member LLCs classified as disregarded entities will need to obtain an EIN. An LLC applies for an EIN by filing Form SS-4, Application for Employer Identification Number.
Can I file my LLC by itself?
If an LLC hasn't elected to be treated as a corporation, the profit or loss will be reported on the owners personal tax return. As we covered above, corporations can file their business taxes separately. Partnerships and disregarded entities must file their business taxes via their personal tax return (Form 1040).
What if my LLC doesn't make money?
Therefore, your limited liability company should still file tax returns even if you didn't make any money. A good rule of thumb is always to file taxes whenever you're confused. If you had no obligation to file, there's nothing to lose.
Will I get a tax refund if my LLC loses money?
To claim a tax refund from the NOL carryback, you will generally want to file Form 1139 for a C corporation NOL or Form 1045 for an individual NOL caused by losses from partnerships, S corporations, LLCs, or sole proprietorships. The IRS generally will process these refund claims within 90 days.
Can I just take money out of my LLC?
An owner can withdraw cash from an LLC through salaries, benefits, bonuses, paying bills, and owner perks, among others. In order to withdraw cash from any limited liability company, there must be consent among owners. This statement applies to companies with more than one owner.
What if there is no business plan?
However, it is more likely that organisations without a set business plan will make a lot of thoughtless errors and that their rate of growth would be greatly impeded, in comparison. A strong business plan goes beyond market analysis coupled with vague revenue projections for an investor pitch.
Does an LLC need a business plan?
Once you've decided that an LLC is a good fit for your business, you should start by creating a business plan (although it is not required), so that you have a roadmap for what you're going to do and how you're going to do it.
Can I write a business plan myself?
Can I write a business plan myself? You sure can. In fact most small business owners who write lean plans create their own business plans. Of course you can always hire someone to do it for you, but that costs money.