So you want to start a dog rescue organization?
Whether you’re an individual looking to help out your local animal shelter or someone who has seen too many stray dogs on the streets, then you might be thinking about starting your own dog rescue business. If that’s the case, you’re going to need to know how to start an LLC for your dog rescue business.
In this article, we’ll cover the steps to form an LLC yourself or hire a professional service to do it for you. In addition, we’ll cover the steps to form an LLC if your business works with a pet shelter, not just dog rescue.
So, you’re ready to start your own business? With so many hard decisions to make, it can be hard to know where to start.
How do you set up an LLC? What are the steps to starting your own dog rescue organization? Can I register my dog rescue organization? These are all great questions, and we’ll try to answer them for you here.
What is Dog Rescue Business?
Before we discuss the steps to register your business, let’s first talk about dog rescue. According to shelterexchange.org, there are many reasons someone might become involved in dog rescue, including:
- To save dogs from the threat of euthanasia at an animal shelter (similar to why someone decides to start a non-profit organization)
- A lifelong calling to work with animals
- The desire to make it their career
When you’re considering becoming part of a dog rescue organization, you might be asking: What’s involved in a day of work for an animal shelter make?
A day in the life of one person who works at an animal shelter might include anything from making food to feed the animals to walking dogs to cleaning up. Also, many animal shelters are strictly controlled environments with strict requirements for cleanliness.
How do Rescue Businesses Make Money?
Although the type of organization is mostly nonprofit corporations, dog rescue organizations use their sources of funding for a variety of purposes. Here are some examples:
Hiring staff to work with the animals and perform the various necessary tasks in a dog rescue facility
- Purchase of equipment like cots and water bowls for dogs
- Advertising costs to spread the word about the dog rescue organization
- Relocation services for animals in need of new homes
Where do Dog Rescue Businesses Get Their Money?
It’s important to know where your rescue organization gets its money before you start a dog rescue business. There are many different sources of income for dog rescue organizations:
- Individual and corporate donations
- Adoption fees collected for animals to be adopted out
- Sponsorships from local businesses or other nonprofit organizations
- Grants from nonprofit organizations or the government
- Tax-deductible monetary and in-kind donations from supporters of a rescue organization
Do I need an LLC for My Dog Rescue Business?
One of the first and most important decisions you’ll make before starting a dog rescue organization is whether to form an LLC for your business. As we’ll discuss below, there are pros and cons to running your organization as an LLC.
What is an LLC?
A limited liability company (LLC) is a hybrid type of business structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership.
Benefits of Registering Your Rescue Business as an LLC
By starting a Limited Liability Company for your Dog Rescue business, you can:
- Protect your personal assets and savings with limited liability protection
- Protect your personal privacy like in an anonymous LLC
- Have more tax benefits in different business structures such as LLC, S-Corp, C-corp, and Sole proprietorship
- Growth potential for Dog Rescue business
- Brand your business’s credibility & name
Limited Liability Protection
One of the major benefits of forming an LLC is that, as with a corporation, your personal assets are protected and you can avoid personal liability and responsibility for business debts.
Personal Privacy Protection
Another major benefit of forming an LLC is that, as with a corporation, you can protect your personal privacy. If for some reason, someone decides to sue your business, that person or group of people would have to contact the LLC itself and not you personally.
Growth Potential for Your Business
If your dog rescue business’s revenue and profits start to increase, you’ll be able to convert it from a sole proprietorship or partnership to an LLC without too much trouble. Then you’ll have the additional tax benefits resulting from being taxed as a corporation for your rescue organization’s income.
LLC Taxation Benefits
If your rescue business is an LLC, you’ll be taxed as either a sole proprietor or a partnership (if you choose to have multiple members).
These taxation methods are advantageous for an LLC as opposed to being taxed as a corporation because profits from sole proprietorships and partnerships flow straight to your personal income tax return. LLCs are not taxed as corporations. See our detailed guideline on how LLCs are taxed article.
Disadvantages of Registering Your Dog Rescue Business as an LLC
The major disadvantage of forming an LLC for your business is that it can be costly, time-consuming, and complicated.
Costs for Registering Your Dog Rescue as an LLC
The first major disadvantage to forming an LLC is that it can have high startup costs. You’ll need to pay filing fees with your state to set up an LLC, and you may also have to hire an attorney or pay for other professional fees to handle the laborious process of filing your documentation and papers. Go can go through our comprehensive guide on the cost to form an LLC in your state.
The second major disadvantage of forming an LLC is the time and effort it takes to set up and maintain. As we’ve discussed, an LLC is a more complicated business structure than a sole proprietorship or partnership, and it will take more time to set up.
Complications of Running Your Dog Rescue as an LLC
There are also a number of other minor disadvantages that can be inconvenient for running your business as an LLC. For instance, if you have employees, you need to make sure your business will be covered by workers’ compensation insurance.
How do I Register a Dog Rescue Organization as an LLC?
If you’re looking to register a dog rescue organization as an LLC, then the process is going to vary from state to state. There are mainly two ways you can start an LLC for your dog rescue business:
- Hire any of the Best LLC Services that are reviewed and tested.
- Or Form an LLC by yourself with our step-by-step guidelines.
There are pros and cons to both methods of forming an LLC, but the best method for you will depend on your specific needs.
How to form an LLC for Dog Rescue?
Now you know why LLC is significant for Shelter take carers and all its benefits. Let’s move forward with the process of forming an LLC. First of all, remember that every state has its own laws in forming an LLC so you need to check your state’s laws.
I’ll be listing down some major steps to start your LLC but if you want the detailed guideline on LLC, you can click here.
- Select your state
- Pick a name for your LLC
- Hire an LLC Registered Agent
- Create an LLC Operating Agreement
- File your Article of Organization
- Get an EIN
#1: Select your state
Choose in which state you want to start your LLC. It is wise to start your LLC where you live and will carry out your business.