A limited liability company, or LLC, creates a legal barrier between business owners and their companies. The personal assets of the owners are deemed separate from those of the company. As a result, LLC owners are not individually accountable for the debts of the company. For certain business owners, LLCs also provide tax benefits. Forming an LLC might also give you more credibility than doing business with an individual because it appears more professional.
An LLC, for example, has the same corporate personhood as a corporation and it can buy property, open a bank account, hire staff, and so on. More crucially, the LLC protects your personal assets. Your personal things cannot be taken as compensation if your LLC is in debt or has legal issues; just the LLC’s holdings are accessible to your lenders.
But don't get confused between Delaware C-corp, Sole Proprietorship, and LLC. Know the difference between:
How To Start An LLC?
An LLC is formed by submitting business formation documents to your state. There are various steps that must be completed. Here, I will discuss the steps in brief. Now let's see the steps:
Step 1: Choose A Name For Your LLC
As you evaluate business names, marketing may be at the forefront of your mind. While it's critical to pick the proper name for branding objectives, your business name must also comply with state legislation.
In case you want to start an LLC in US, you have to register a business name in US. Read our blog on How to conduct an LLC name search.
If you have formed an LLC but wish to conduct its business under a different name, you will need to formally register that name as a DBA, which is typically a simple process.
Also Read: Mistakes To Avoid When Naming Your Business
Step 2: Designate a Registered Agent
LLCs must have a registered agent in every state. A registered agent is someone who receives official or legal documents on behalf of the LLC (such as subpoenas). After receiving these documents, the registered agent will forward them to the LLC's managing member. There are many LLC formation companies that will designate a registered agent for you. Always choose from the best registered agent services for this process.
Step 3: Get a Copy of Your State’s LLC Article of Organization Form
You'll file a document with the state agency that handles business filings in your state to form your LLC as a legal entity. The articles of organization are the term given to this document in most jurisdictions, while some states call it something else, such as a certificate of formation. You can fill out a form in each state. Go to the same website you used for business name research to find your state's form.
Also Read: Professional Corporation vs Professional LLC
Step 4: Prepare the LLC Article of Organization Form
Each state will list its specific requirements and procedures for those trying to form an LLC.
Basic information you’ll need to provide includes:
Your business name
The address of your principal place of business
The purpose of the business
The way your LLC will be managed
Contact information for the registered agent(and in some states, the agent’s signature)
The duration of the LLC
When that’s complete, one or more business owners or organizers will need to sign the form.
Step 5: File the Articles of Organization
Before filing your articles of incorporation to your state, double-check them. You'll also have to pay a filing fee, which varies based on the state where your firm is being formed.
When your formation documents are approved, the state will provide you with a certificate indicating that your LLC is officially registered. It can also be used for other important tasks like opening a business bank account and obtaining a tax ID number.
Also Read: Best Banks For Small Business
Step 6: Create an Operating Agreement
The financial, legal, and management rights of all LLC members are detailed in an operating agreement. It can include details such as how revenues will be dispersed, how members will leave the LLC, and who will contribute cash to the company. In essence, it should include all pertinent information about your LLC's operations.
Also Read: How to Start a Business in the USA as a Non-Resident
Step 7: Fulfill The Tax Regulatory Requirement
Additional tax and regulatory requirements may apply to your LLC. These include:
EIN: If your LLC has more than one member, it must obtain its own IRS Employer Identification Number (EIN), even if it has no employees. Also, read our article on how to get an EIN as a foreign national.
Business Licenses: Depending on its type of business and where it is located, your LLC may need to obtain other local and state business licenses. Check with the appropriate state agencies to ensure you are properly registered, licensed, and permitted to do business in your state.
Sales and Employer Tax: In some cases (for example if you will be selling goods and collecting sales tax or if you have employees), you'll need to register with the appropriate state taxing authority.
Step 8: Keep Your LLC Active
The formation of your LLC is merely the first step. You'll need to keep your business in good standing with your state once it's been founded. Check your state's company filing page for the most up-to-date information on how to do so. You may be required to file an annual report and pay an annual filing fee to update information about your LLC.
The following information is normally needed in the articles of incorporation:
The LLC’s proposed name
Members of the LLC’s names, addresses, and signatures
Your registered agent’s name and address
The company’s physical address
Style of management (member-managed or manager-managed)
For additional information, you can read our articles on how to start an LLC, where you will get the complete step-by-step guide on how to start an LLC.
Also Read: How To Become A Sole Proprietorship
If you want to start your LLC in the US, here are some guidelines on how to form a limited liability company in various states of the US.
Some states require a North American Industry Classification System (NAICS) code to form an LLC. Having one means being eligible to receive grants and purchase contracts from the government.
Also read:
List Of Top LLC Formation Services
Here is the list of some of the
FirstBase.IO
Firstbase is an all-in-one company operating system that allows anyone to start, grow, and manage a business in the United States. Firstbase.io is one of the best startup firms that can assist you in launching your company smoothly. Firstbase.IO is also one of the best alternatives of LegalZoom. You may reduce your paperwork and solve all of your concerns with our all-in-one incorporation tool during our campaigns.
Also, get the Firstbase.io coupons and discount code here.
You can also check Firstbase Vs Stripe Atlas here.
Incfile
Although Incfile is a terrific way to get your LLC up and operating for free, you may want to explore certain higher-priced services or annual fees. Infile is one of the best alternatives of Stripe Atlas. Incfile provides a comprehensive set of services to assist you in starting a business, registering it in New York, and maintaining its success. They have something for everyone, whether it's forming a limited liability company or registering a brand.
Get Incfile Coupons and Promo codes here.
Also read:
Northwest Registered Agent
Customers may expect a pleasant and simple customer service experience from Northwest Registered Agent. They manage everything in-house, so you can obtain support or information promptly when you need it without having to worry about working with third parties who may sell your data for less than it's worth!
Get Northwest Registered Agent Coupon Codes here.
Inc Authority
The mission of Inc Authority is to make business formation a reality for everyone. As a result, our business establishment service is completely free! You only have to pay your state fees, and Inc Authority will take care of the rest. The committed staff of startup specialists who are here to help you every step of the way is what sets Inc Authority apart. Their procedure is straightforward, and they provide the support you need to launch your firm with confidence.
Get Inc Authority Coupon Codes And Promo Codes here.
ZenBusiness
ZenBusiness will develop a new system that allows business owners to complete all of their forms in one spot, swiftly and for a fraction of the cost. With a single click of a button, ZenBusiness will be able to complete the filing process. This drastically minimizes the amount of work for business owners. Zenbusiness can help you choose the best-registered agent service online to ensure that all of your legal and tax documentation is in order.
Get ZenBusines Coupons & Promo Codes here.
Also read, Best ZenBusiness Alternatives.
MyCompanyWorks
If you're wanting to form an LLC or just need some help with your paperwork, MyCompanyWorks is a great place to start. The smaller incorporation service can provide more individual attention than LegalZoom's larger, less personal options, so it's worth a look!
Get MyCompanyWorks Coupon Codes And Promo Codes here.
CorpNet
CorpNet is a top-rated company formation service provider that has assisted in the formation of over 100,000 enterprises over the last two decades. They have a great reputation among LLCs, and numerous independent review sites laud Corpnet for their high level of customer happiness!
Get CorpNet Coupon Codes And Promo Codes here.
Rocket Lawyer
For those who require continuing legal assistance, Rocket Lawyer may be a good choice. The membership package that includes an LLC filing costs around $480 per year, which is more than you would pay if the service was the only thing you needed. However, depending on the nature of your organization and how frequently it requires outside support in general (as opposed to specific instances), this cost may not be that awful after all!
Doola
Doola is one of the best stripe atlas alternatives, allowing you to launch your business for a low monthly fee! Doola, a startup that aims to assist international entrepreneurs to start a business in the United States, has received $3 million in seed funding, according to the Economic Times.
Get Doola Coupon Codes And Promo Codes here!
If you are getting confused between these LLC formation services, please check out our clear comparison on Stripe Atlas Vs Clerky Vs Gust Vs LegalZoom Vs ZenBusiness.
StartGlobal
StartGlobal makes it easier than ever to start a new business by removing lengthy paperwork, legal complexity, and numerous fees. Plus, you can handle company formation, business bank accounts, taxes, accounting, compliance, and more.
It is trusted by over 150+ countries such as otero consulting, Learn Powers, Herbier, and JukeBox Global. StartGlobal has the most straightforward process to set up and run your business in the US. With the help of their expert team, you can easily set up and run your business as fast as possible.
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Conclusion
To choose the best LLC filing companies, we have researched and listed the best online Incorporation Services around the United States, focusing on services offered, turnaround times, cost, and average customer reviews. Expertise and services offered were the most important factor reviewed, with price also playing a significant role. Any on this list should be able to handle typical LLC filing needs.
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