Basics About an LLC
Let us provide you with some of the basics about an LLC.
Understanding what an LLC formation is
The LLC stands for “Limited Liability Corporation”. It gained significant popularity in the US during the 1990’s due to its special tax and individual liability treatment. An LLC’s owners are called members, which can be numerous.
The advantage of being an LLC member is that you are not held personally legally liable for the company’s financial debt. No creditor can come after you personally to repay the company liabilities, which is of great protection for you.
Other Benefits of the LLC
LLC are beneficial in other ways:
Pass-Through Taxation – With your LLC, income that your company earns is only taxed once as individual income. You are not double-taxed, first as corporate income, then at the personal income level as most corporation are. This is a huge benefit that pays great reward.
Reduced Paperwork – LLC members have less paperwork and regulations to deal with at its start-up formation date and at its annual renewal
Starting Your LLC
Below are the initial steps to creating your LLC:
1. First, choose a name for your new company. It will need to be confirmed that it is not actively in use by another LLC..
2. Select an LLC package, and complete the following forms:
a) Articles of Organization – This document must be filed with the Secretary of State’s office in your respective state, which we complete for you. They charge a filing fee to record this document.
b) Notice of Intent to Form an LLC – Some state will require a public notification of your intention to create an LLC. .
c) Operating Agreement – This document details specific operational and agreement issues that is very important as you begin your new business. It is especially important if you are planning to have more than one member
d) License and Permits -Make sure to obtain all the necessary licenses and permit to legally operate your business in your state, county, and city. This also includes obtaining your federal tax id number