July 17, 2025 • 10 mins
Been hearing conflicting info about whether you need an LLC before you start working as a VA? You’re not alone!
In this episode, Laura Nicole pulls back the curtain on what an LLC really is, why you don’t need one BEFORE you work with clients, and when you might want to consider registering for one down the line.
Tune in to gain clarity around business structures, know when to loop in an accountant, and walk away feeling empowered to take the next step in your VA journey.
What you’ll hear in this episode:
- VA business misconceptions
- Understanding LLC basics and benefits
- When to Consider Creating an LLC
If you're ready for a complete VA step-by-step system, check out the Superstar Assistant Academy where I'll guide you through launching your VA business in just 28 days.
What can you expect from this podcast and future episodes?
- Bite-sized episodes that give you quick, actionable insights into the Virtual Assistant industry
- Learn how to build skills, boost your confidence, and create a profitable VA business
Get the show notes and transcription here:
https://www.laurajtraining.com/podcast-ep11-busting-va-myths-you-need-an-llc-to-start
Find Laura on social media:
Instagram: @hey.lauranicole
TikTok: @hey.lauranicole
Facebook: Superstar Assistant Academy
Interested in earning sustainable income on YOUR terms, working as a Virtual Assistant? Register for FREE and Click Here to Get Started
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Laura Nicole (00:02):
Welcome to your Virtual Assistant Coach, the
podcast for moms who want tomake money from home on their
own terms.
I'm your host, Laura Nicole, asuccessful six-figure earning VA
and coach, who replaced mycollege professor salary in just
five months back in 2020, aftermy daughter was born, and I
have never looked back.
I'm here to help you build aprofitable, flexible VA business
(00:24):
that fits into your family'slives, so you no longer feel
like you're living just to work.
Let's dive in.
A common misconception that Ihear a lot about virtual
assistant work is that you haveto have either a business
license or an LLC in order toreally get started and sign
clients and have an income becoming into your bank account as
(00:48):
a virtual assistant.
But that simply is not true.
You can absolutely beginworking as a VA and signing
clients and having your invoicesbe paid to you immediately,
simply operating as a soleproprietor.
In the US, that means that onyour taxes, you will just be
filing as a 1099.
So you're an independentcontractor, you're a freelancer,
(01:10):
you're a sole proprietor.
All of those terms are kind ofinterchangeable.
So when you go to file yourtaxes instead of getting a W-2
from your employer right, wedon't have an employer as a
virtual assistant Now you willbe receiving 1099s from your
clients if, and only if, you hadearned $600 or more from them
(01:32):
throughout the calendar year.
But all it means is that youwill be filing your income on
your personal taxes asself-employed, and that is
totally freaking fine.
You can absolutely do that, andyou can be listed as a sole
proprietor and operating thatway for quite a while before you
really need to consider gettingan LLC in place.
(01:53):
I'm here to help you relievethe overwhelm and understand
what is actually a necessity andwhat is not, and I have seen
too many women steer away fromthis opportunity of earning an
income as a VA because theythink that they're going to have
to do the business license andthe LLC and all the things.
So please do not let the ideaof excessive amounts of
(02:14):
paperwork hold you back, becauseI promise there's not actually
as much of it as you think theremight be.
I am going to walk you throughwhat an LLC actually is, some of
the pros of forming an LLC, ifyou choose to, the cons of
forming an LLC.
At what point in your virtualassistant business should you
actually consider opening an LLC, and then some guidance on how
(02:35):
to set one up if you decide thatthat is the route that you want
to go down the line.
To explain it really simply, aLLC is a limited liability
company and this creates a legalstructure that separates your
personal assets from yourbusiness, from your virtual
assistant business.
It tends to offer someprotection in case something
(02:58):
does go wrong when working witha client, but it doesn't
actually change your day-to-daywork or your structure.
You're still self-employed.
You are still an independentcontractor.
There is just now that legaldistinction and separation
between your personal assets andyour business assets.
Setting up an LLC is typicallyreally inexpensive usually no
(03:19):
more than $100 to $150 for theyear, but it depends on each
individual state that you livein.
Some of the pros of forming anLLC reasons that you might want
to consider doing this for yourvirtual assistant business is
that it gives you that liabilityprotection If something were to
go crazy, crazy wrong off therails bad with a client and you
(03:42):
maybe ended up getting suedsomeday.
Right, if you have an LLC inplace, then your personal assets
are separate from your businessassets and the money that you
have in your business.
Obviously, that is like a onein a million chance of ending up
in a scenario like that.
But that is the pro of havingthis legal distinction between
(04:04):
your personal assets and yourbusiness assets.
To some clients that you workwith, they might perceive you
having an LLC set up as beingmore legit or more professional,
but again, y'all it is so not arequirement in order to be able
to work with clients and havethem paying you.
Another pro of forming an LLCis that it opens the door to
(04:26):
getting an EIN, which is youremployee identification number,
and having your EIN is whatmakes it so that you can go out
and set up actual business bankaccounts if you want to.
How to actually structure yourbank accounts and where your
money flows and setting asidestuff for taxes and all of that
we cover pretty in-depth insideof the Superstar Assistant
(04:47):
Academy and especially whenyou're starting out.
My personal opinion is thathaving a separate business bank
account is truly not requiredbecause there's so many options
out there to set up, like extrachecking or extra savings
account at whatever bank youalready bank with.
But if you were feeling reallystrongly about wanting to have
(05:07):
business specific bank accounts,you would need to have an EIN
in order to do that and havingthe LLC grants you that EIN.
And, on the flip side of that,some cons of forming an LLC is
number one, that it costs moneyand, like I mentioned previously
, it's not that it's superexpensive or this massive
investment right that it costsmoney.
And, like I mentionedpreviously, it's not that it's
super expensive or this massiveinvestment right, but it does
cost money.
(05:28):
It is, in most states, around$75 to $150 for the year.
There are some states, Ibelieve, that it's a one-time
fee, but I believe it's morecommon that it's an annual
renewal, depending on your state.
But for me and both of thestates I've lived in since
having an LLC, it has been anannual renewal on your state.
But for me and both of thestates I've lived in since
having an LLC, it has been anannual renewal and so I have
(05:48):
that expense every year, whichleads to con.
Number two is that it can beongoing paperwork and
maintenance.
I have to make sure that Irefile that paperwork and pay
the fee every year to keep myLLC.
And now, mind you, I know Ihave been telling you that it's
not a requirement when you startand now, mind you, I know I
have been telling you that it'snot a requirement when you start
.
And then I just said that Ihave one, but I did not open an
(06:09):
LLC y'all until I was threeyears in to my virtual assistant
business.
In hindsight I probably couldhave opened one sooner because
of the amount of income I wasgenerating.
But I didn't actually open oneuntil I decided to start
coaching and open up theSuperstar Assistant Academy
because for that business it wasa requirement.
(06:30):
Another con is that it's justmore paperwork.
Right, and paperwork can feelintimidating or overwhelming,
especially when you're startingsomething new and building out
the whole foundation for yourvirtual assistant income.
And since it's not required,it's not something that we have
to be pouring our time andenergy and brainpower into.
It's totally fine if it'ssomething that you just put on
(06:51):
the back burner and you can comeback to it later when you are
at a point in your businesswhere you should be considering
an LLC.
So when is that time right?
There is not a magic length oftime.
There is not a magic set numberof income that you hit where it
suddenly becomes a requirement.
If you have an accountant, thisis something that I would
(07:13):
recommend.
Asking your accountant is whatpoint and what level of income
on an annual basis.
Do they think is a smart pointto get this paperwork in and
make this separation betweenyour personal assets and your
business assets?
My personal accountantindicated that it's smart to do
once you're consistently, aftera couple of years in a row,
(07:34):
making $40,000 to $50,000 a year.
But I have heard totallydifferent numbers from different
accountants.
I've heard $20,000.
I've heard $100,000.
So I'm not going to tell you aset number or a set length of
time that you should be inbusiness before creating an LLC.
I am going to encourage you toreach out to an accountant that
can know your personal situationand give you advice on this.
(07:58):
But my advice would be thatwhen you're ready to add things
in like business bank accountsand you feel like you're at a
point where you want that addedprotection for your personal
assets versus your businessassets, then that's a good time
to at least start theconversation with an accountant.
But opening up an LLC should besomething that you think of as
a growth step in your businessand not as a starting line
(08:22):
requirement.
Now, if you do decide to talk toan accountant and the
conversation between y'all leadsyou to feel like setting up an
LLC is something that you wantto go ahead and do, there is
obviously paperwork attached toit and things that have to be
submitted, but in most statesit's a pretty easy DIY process
that you can do via yourSecretary of State's website.
(08:45):
Or, if you're like me and youdon't necessarily trust yourself
to get the paperwork exactlyright, you can use services like
LegalZoom or a lot of times,your accountant can actually
submit your paperwork for youand, like I mentioned prior, the
cost to register your LLC andthen also the annual renewal for
your LLC will vary by state, soyou'll want to look it up for
(09:06):
your state individually.
But this is the type ofpaperwork that you actually can
keep pretty simple, whether youDIY, legalzoom, use your
accountant, but you don't need,like a lawyer, for example, to
file an LLC for you.
If there is any one thing thatyou take away from this episode,
let it be the fact that youcannot let the fear of getting
(09:27):
it quote, unquote wrong stop you.
Most new virtual assistantsstart as sole proprietors, as
the 1099, as the independentcontractor, where you're filing
your taxes as self-employed, andthen figure out the LLC and the
EIN and the business bankaccount and all of that stuff a
little bit further down the line.
(09:47):
Once they're working withclients, they're generating an
income and they feel ready tomake that distinction.
If this episode has helped youfeel a little bit more confident
in the process of getting yourVA business up and running,
share it with another mom who'sconsidering virtual assistant
work, because we do not gatekeeparound here.
And if you want the fullstep-by-step system to get your
(10:10):
VA business off the ground injust 28 days, then you
absolutely want to get yourbooty inside of the Superstar
Assistant Academy.
I'll leave that link for you inthe show notes.
Thanks for hanging out with metoday on your Virtual Assistant
Coach.
If you loved this episode, besure to share it with your best
friend, your sister or even yourfavorite coworker, who you know
(10:31):
wants to start making aflexible income.
I'll see you all next time.
Welcome to your Virtual Assistant Coach, the
podcast for moms who want tomake money from home on their
own terms.
I'm your host, Laura Nicole, asuccessful six-figure earning VA
and coach, who replaced mycollege professor salary in just
five months back in 2020, aftermy daughter was born, and I
have never looked back.
I'm here to help you build aprofitable, flexible VA business
(00:24):
that fits into your family'slives, so you no longer feel
like you're living just to work.
Let's dive in.
A common misconception that Ihear a lot about virtual
assistant work is that you haveto have either a business
license or an LLC in order toreally get started and sign
clients and have an income becoming into your bank account as
(00:48):
a virtual assistant.
But that simply is not true.
You can absolutely beginworking as a VA and signing
clients and having your invoicesbe paid to you immediately,
simply operating as a soleproprietor.
In the US, that means that onyour taxes, you will just be
filing as a 1099.
So you're an independentcontractor, you're a freelancer,
(01:10):
you're a sole proprietor.
All of those terms are kind ofinterchangeable.
So when you go to file yourtaxes instead of getting a W-2
from your employer right, wedon't have an employer as a
virtual assistant Now you willbe receiving 1099s from your
clients if, and only if, you hadearned $600 or more from them
(01:32):
throughout the calendar year.
But all it means is that youwill be filing your income on
your personal taxes asself-employed, and that is
totally freaking fine.
You can absolutely do that, andyou can be listed as a sole
proprietor and operating thatway for quite a while before you
really need to consider gettingan LLC in place.
(01:53):
I'm here to help you relievethe overwhelm and understand
what is actually a necessity andwhat is not, and I have seen
too many women steer away fromthis opportunity of earning an
income as a VA because theythink that they're going to have
to do the business license andthe LLC and all the things.
So please do not let the ideaof excessive amounts of
(02:14):
paperwork hold you back, becauseI promise there's not actually
as much of it as you think theremight be.
I am going to walk you throughwhat an LLC actually is, some of
the pros of forming an LLC, ifyou choose to, the cons of
forming an LLC.
At what point in your virtualassistant business should you
actually consider opening an LLC, and then some guidance on how
(02:35):
to set one up if you decide thatthat is the route that you want
to go down the line.
To explain it really simply, aLLC is a limited liability
company and this creates a legalstructure that separates your
personal assets from yourbusiness, from your virtual
assistant business.
It tends to offer someprotection in case something
(02:58):
does go wrong when working witha client, but it doesn't
actually change your day-to-daywork or your structure.
You're still self-employed.
You are still an independentcontractor.
There is just now that legaldistinction and separation
between your personal assets andyour business assets.
Setting up an LLC is typicallyreally inexpensive usually no
(03:19):
more than $100 to $150 for theyear, but it depends on each
individual state that you livein.
Some of the pros of forming anLLC reasons that you might want
to consider doing this for yourvirtual assistant business is
that it gives you that liabilityprotection If something were to
go crazy, crazy wrong off therails bad with a client and you
(03:42):
maybe ended up getting suedsomeday.
Right, if you have an LLC inplace, then your personal assets
are separate from your businessassets and the money that you
have in your business.
Obviously, that is like a onein a million chance of ending up
in a scenario like that.
But that is the pro of havingthis legal distinction between
(04:04):
your personal assets and yourbusiness assets.
To some clients that you workwith, they might perceive you
having an LLC set up as beingmore legit or more professional,
but again, y'all it is so not arequirement in order to be able
to work with clients and havethem paying you.
Another pro of forming an LLCis that it opens the door to
(04:26):
getting an EIN, which is youremployee identification number,
and having your EIN is whatmakes it so that you can go out
and set up actual business bankaccounts if you want to.
How to actually structure yourbank accounts and where your
money flows and setting asidestuff for taxes and all of that
we cover pretty in-depth insideof the Superstar Assistant
(04:47):
Academy and especially whenyou're starting out.
My personal opinion is thathaving a separate business bank
account is truly not requiredbecause there's so many options
out there to set up, like extrachecking or extra savings
account at whatever bank youalready bank with.
But if you were feeling reallystrongly about wanting to have
(05:07):
business specific bank accounts,you would need to have an EIN
in order to do that and havingthe LLC grants you that EIN.
And, on the flip side of that,some cons of forming an LLC is
number one, that it costs moneyand, like I mentioned previously
, it's not that it's superexpensive or this massive
investment right that it costsmoney.
And, like I mentionedpreviously, it's not that it's
super expensive or this massiveinvestment right, but it does
cost money.
(05:28):
It is, in most states, around$75 to $150 for the year.
There are some states, Ibelieve, that it's a one-time
fee, but I believe it's morecommon that it's an annual
renewal, depending on your state.
But for me and both of thestates I've lived in since
having an LLC, it has been anannual renewal on your state.
But for me and both of thestates I've lived in since
having an LLC, it has been anannual renewal and so I have
(05:48):
that expense every year, whichleads to con.
Number two is that it can beongoing paperwork and
maintenance.
I have to make sure that Irefile that paperwork and pay
the fee every year to keep myLLC.
And now, mind you, I know Ihave been telling you that it's
not a requirement when you startand now, mind you, I know I
have been telling you that it'snot a requirement when you start
.
And then I just said that Ihave one, but I did not open an
(06:09):
LLC y'all until I was threeyears in to my virtual assistant
business.
In hindsight I probably couldhave opened one sooner because
of the amount of income I wasgenerating.
But I didn't actually open oneuntil I decided to start
coaching and open up theSuperstar Assistant Academy
because for that business it wasa requirement.
(06:30):
Another con is that it's justmore paperwork.
Right, and paperwork can feelintimidating or overwhelming,
especially when you're startingsomething new and building out
the whole foundation for yourvirtual assistant income.
And since it's not required,it's not something that we have
to be pouring our time andenergy and brainpower into.
It's totally fine if it'ssomething that you just put on
(06:51):
the back burner and you can comeback to it later when you are
at a point in your businesswhere you should be considering
an LLC.
So when is that time right?
There is not a magic length oftime.
There is not a magic set numberof income that you hit where it
suddenly becomes a requirement.
If you have an accountant, thisis something that I would
(07:13):
recommend.
Asking your accountant is whatpoint and what level of income
on an annual basis.
Do they think is a smart pointto get this paperwork in and
make this separation betweenyour personal assets and your
business assets?
My personal accountantindicated that it's smart to do
once you're consistently, aftera couple of years in a row,
(07:34):
making $40,000 to $50,000 a year.
But I have heard totallydifferent numbers from different
accountants.
I've heard $20,000.
I've heard $100,000.
So I'm not going to tell you aset number or a set length of
time that you should be inbusiness before creating an LLC.
I am going to encourage you toreach out to an accountant that
can know your personal situationand give you advice on this.
(07:58):
But my advice would be thatwhen you're ready to add things
in like business bank accountsand you feel like you're at a
point where you want that addedprotection for your personal
assets versus your businessassets, then that's a good time
to at least start theconversation with an accountant.
But opening up an LLC should besomething that you think of as
a growth step in your businessand not as a starting line
(08:22):
requirement.
Now, if you do decide to talk toan accountant and the
conversation between y'all leadsyou to feel like setting up an
LLC is something that you wantto go ahead and do, there is
obviously paperwork attached toit and things that have to be
submitted, but in most statesit's a pretty easy DIY process
that you can do via yourSecretary of State's website.
(08:45):
Or, if you're like me and youdon't necessarily trust yourself
to get the paperwork exactlyright, you can use services like
LegalZoom or a lot of times,your accountant can actually
submit your paperwork for youand, like I mentioned prior, the
cost to register your LLC andthen also the annual renewal for
your LLC will vary by state, soyou'll want to look it up for
(09:06):
your state individually.
But this is the type ofpaperwork that you actually can
keep pretty simple, whether youDIY, legalzoom, use your
accountant, but you don't need,like a lawyer, for example, to
file an LLC for you.
If there is any one thing thatyou take away from this episode,
let it be the fact that youcannot let the fear of getting
(09:27):
it quote, unquote wrong stop you.
Most new virtual assistantsstart as sole proprietors, as
the 1099, as the independentcontractor, where you're filing
your taxes as self-employed, andthen figure out the LLC and the
EIN and the business bankaccount and all of that stuff a
little bit further down the line.
(09:47):
Once they're working withclients, they're generating an
income and they feel ready tomake that distinction.
If this episode has helped youfeel a little bit more confident
in the process of getting yourVA business up and running,
share it with another mom who'sconsidering virtual assistant
work, because we do not gatekeeparound here.
And if you want the fullstep-by-step system to get your
(10:10):
VA business off the ground injust 28 days, then you
absolutely want to get yourbooty inside of the Superstar
Assistant Academy.
I'll leave that link for you inthe show notes.
Thanks for hanging out with metoday on your Virtual Assistant
Coach.
If you loved this episode, besure to share it with your best
friend, your sister or even yourfavorite coworker, who you know
(10:31):
wants to start making aflexible income.
I'll see you all next time.
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