Limited Liability Company (LLC) provides limited liability protection to the owners. LLC is a popular business structure for startup businesses which is formed according to the state laws. LLC also makes sure the level of tax is not doubled for the company thus providing the members with flow through tax treatment. The owners get taxed on personal income but there isn’t any tax at the LLC level.
The general requirements for an LLC are similar but the exact rules of setting it up can vary according to the state. Thus the first decision to make for the members is where they will organize the LLC as LLC will be formed according to the rules and requirements of a particular state law. A lot of money can be saved on fees and complexities if the LLC is formed in the exact state where the LLC will be operated.
When an available business name is selected for the LLC, it becomes a lot easier to organize the LLC. Click here to check out the best companies that provide such LLC services. It need not be always easy as the desired name might be registered with someone else so it will require some cost to get the name which is owned by a third party already.
Filing an ‘Articles of Organization’ with the Secretary of State makes it concrete that the LLC is officially formed. Sample Articles of Organisation in word or PDF format is available on the website of the Secretary of State. Post which one needs to get an Employer Identification Number (EIN) from the IRS as banks require the LLC to have an EIN before a business account is opened. It is an easy, immediate, free of cost online process to get the EIN also called the Federal Tax Identification Number.