How To Set Up An LLC Step-By-Step For FREE in 2026

Summary

This video provides a comprehensive, step-by-step guide for creating an LLC for your business, directly applicable to short-term rental hosts who want to protect their personal assets. The speaker, a CPA, explains the dual benefits of liability protection and tax flexibility, warning that a properly structured LLC is crucial for separating business liabilities (like a guest injury at a rental property) from personal assets. The tutorial covers key decisions like choosing the right state to form in (usually your home state), selecting a tax election (S-Corp, C-Corp, or disregarded entity), and understanding the role of a registered agent. It emphasizes critical mistakes to avoid, such as co-mingling funds and neglecting annual compliance, which can nullify the protections the LLC is meant to provide.