JavaScript development is widely considered to be one of the most lucrative fields in the software industry; statistics indicate that JavaScript developers with decent experience can easily generate base salaries of $100,000 or higher. And those who open their own shops, setting up entrepreneurial ventures in the real-time application space, may find the field to be more lucrative still.

Of course, building a sustainable company isn’t just about having JavaScript acumen. Business acumen is needed, too. And one of the savviest decisions a developer can make is to register their enterprise as an LLC.

Business acumen is needed, too.

Everything You Need to Know About LLCs

The LLC, or Limited Liability Company, has been around since the 1970s and is widely considered to be one of the most popular legal formats for entrepreneurs. According to the National Small Business Association, more than a third of all small businesses are registered as LLCs.

The LLC can be advantageous for entrepreneurs across virtually all industries, and that definitely includes JavaScript app development. To understand the benefits of the LLC structure, it’s first necessary to understand some of the wider context.

LLCs vs. Everything Else

To begin with, it’s helpful to know that, any time you start generating self-employed income (on the basis of apps you develop and sell or whatever else), the government automatically deems you to be a Sole Proprietor.

When you operate in this way, there’s no legal distinction between you and your business, and no way to distinguish your personal finances from your business finances. This makes accounting and tax prep pretty easy, but it also means that if anyone serves you with a lawsuit, or you rack up a lot of debts, it’s not just a business problem. It’s a personal problem, and potentially a family problem as well.

One way to sidestep these concerns, and to shore up your personal wealth protection, is to incorporate. Corporations certainly offer protection, but they also come with a lot of regulatory considerations. For example, you’ll need to issue shares, create a Board, hold annual meetings, disclose your finances to the public, and so on. That may seem burdensome for small JavaScript development shops, especially if you’re just starting out.

LLCs are popular because they offer a middle ground. Because LLCs allow you to separate your business and personal finances, they allow you to keep things like your house, car, and family bank accounts free and clear from any legal imbroglio. At the same time, LLCs offer a lot more flexibility and lighter regulatory burdens than corporations do.

LLCs are popular because they offer a middle ground.

How to Register as an LLC

We’ll return to the subject of LLC benefits shortly, but first: How do you actually register your business? If your subject-matter expertise is in JavaScript, you may not have as much specialized knowledge of business law. That’s okay. Registering an LLC is pretty easy, and in most cases, it doesn’t require you to enlist the help of an attorney.

Here are some quick recommendations for starting a JavaScript development LLC.

Choose the State You Want to Register In

Registering an LLC affords you the flexibility to choose any state you want, which may seem liberating or perhaps overwhelming. Actually, this is a pretty easy decision: The rule of thumb is to register in whichever state you’re generating income. For JavaScript developers, that usually means the state you’re operating from.

As you choose the state where you want to register, be sure to look into state-specific LLC regulations. The rules can vary a bit from state to state, making it important to double check the fine print. So if you’re setting up an LLC in Texas, for example, do some quick research into any laws specific to the Lone Star State.

Name Your Company

This one’s pretty simple: Your LLC needs a name, and it has to be a name that isn’t already in use by another LLC in your state. Most states offer searchable databases, which makes it pretty easy to determine whether the moniker you’re after is still up for grabs.

Appoint an Agent

By law, every LLC must have a Registered Agent. This is basically a trusted person whose job is to receive and maintain correspondence from the state, like legal summons or tax documents. In most states, you can hire someone to be your Agent for under $100 annually.

File Your Paperwork

To officially register your LLC, you’ll need to file a document called "Articles of Organization" with your state. The specifics of this document can vary by state, but usually, it just involves things like the name of your company, its intended duration, your contact information, the name of your registered agent, and so forth.

• How much does it cost to register with the state? LLC registration fees can vary from state to state and may be anywhere from $20 to $300.

• What’s the timeline for LLC approval? In most states, you can get your LLC approved in two to four weeks. An expedited timeline may be available for an extra charge.

• Are any other documents required? Though it isn’t legally mandatory, it may be beneficial to have an Operating Agreement, outlining the internal structure of your LLC. This can help you avoid legal disputes down the road.

How do you actually register an LLC?

What About Legal Compliance?

One of the perks of registering an LLC is tha legal compliance is fairly minimal. Here are the main things to keep in mind:

• Check your state’s requirements for re-filing your LLC paperwork each year.

• If you get a new Registered Agent, make sure you alert the state.

• Also alert the state if your current Registered Agent changes their contact information, particularly their mailing address.

• Be sure you have an Employer Identification Number or EIN, before you process payroll. You can claim one for free from the IRS (assuming you’re a US resident).

• If you register in California, stay on top of the $800 flat-fee tax imposed on LLCs each year.

Enhancing Business Security

In addition to legal compliance and performance optimization, securing your JavaScript development business is crucial. Here are some key measures to consider:

Regular Security Audits

Conduct regular security audits to identify and fix vulnerabilities in your applications and infrastructure. Regularly updating and patching your systems can prevent exploits from being used against your business.

Implement Robust Authentication Mechanisms

Ensure that your systems use strong authentication methods, such as multi-factor authentication (MFA). This adds an additional layer of security beyond just usernames and passwords, making it more difficult for unauthorized users to gain access.

Secure Development Practices

Adopt secure coding practices to mitigate common security risks, such as SQL injection and cross-site scripting (XSS). Regular code reviews and using tools for static and dynamic analysis can help identify and resolve security issues early in the development process.

Securing your JavaScript development business is crucial.

Why Registering an LLC is the Way to Go

For JavaScript developers, registering as an LLC can be advantageous in more ways than one. Some benefits of the LLC format include:

• Protect your personal assets from lawsuits and from creditors (no small thing in the litigious world of software/app development).

• Enjoy pass-through taxation, as opposed to corporate tax rates.

• Choose the day-to-day management structure best suited to your business needs.

• Enhance your professionalism and credibility with an official LLC designation.

• Apply for business loans and lines of credit more easily.

• Protect your privacy, avoiding the need for extensive, public financial reporting.

• Position your LLC for perpetual existence, meaning you can pass it down to a partner, colleague, or family member once you’re ready to step aside. Sole Proprietorships do not offer this benefit, nor do Partnerships.

These are just a few of the reasons why LLC registration is well worth the effort. Utilizing a photo editor to create visually appealing content for your website and social media can further enhance your LLC's online presence and marketing strategies.

With the right legal savvy, you can position your business for long-term, sustainable growth.

Set Up Your JavaScript Business for Lasting Success

The bottom line: With the right legal savvy, you can position your business for long-term, sustainable growth. Registering as an LLC is one of the best ways to do so. Consider establishing your JavaScript development shop as an LLC today.