If you are planning to start your own business or company, then it is crucial that you should choose least complex, flexible and result oriented structure. In such situation, LLC will fit perfectly as per your needs. LLC stand for limited liability company and offer many benefits which is going to be profitable for your business.
It is basically a business structure which is started by getting permission from state stature. In fact, for its formation one has to do filing for a business by filing articles of organization with state secretary. This business form is highly opted these days because it does not involve any risk to your personal assets. This business structure even comprises of sole proprietorship with limited liability of corporation.
Advantages of setting up an LLC
Along with offering high end flexibility, there are several advantages you will likely get by setting up limited liability company such as legal protection to firm, enhanced creditability and many more. Here are some of the other advantages your business will get:
- No requirement for residency or permanent residency
- No need to file corporate tax return
- High flexibility of partnership
- Limits compliance requirement
- Very less restrictions
Process of creating an LLC
If you don’t know how to start an llc then you need not have to take tension. To clear out all the doubts related to formation of LLC, you can consider the following guidelines:
- Choose legal name and get it reserved consider help of Secretary of State if they do all such things.
- File and draft Articles of Incorporation of company with Secretary of State.
- Decide who is going to run services related to business whether managers or members.
- Decide the number of owners who is going to be part of your LLC.
- Apply for business certificates and license which are related specifically to your business or industry.
- File form number SS-4 or you can also apply online by visiting Internal Revenue Service website and obtain Employer Identification Number commonly known as EIN.
- Apply for other and important ID numbers which are needed by local and state agencies. Since, requirements vary from each other and from one jurisdiction to another, but in most of the business the thing that will be likely required is paying disability, unemployment and payroll taxes – you will also need a tax ID number for all the accounts which are added to EIN.
Different types of LLC
Limited Liability Company can be formed in different ways depending on your business choice and need. Although, all types of LLCs poses same features but there benefits are something that make them different from each other. Some common types of LLCs which are getting popular nowadays are foreign LLC, domestic LLC, professional LLC and series LLC. In fact, you should choose LLC after proper planning and investing some quality time as it carries taxation policy as well that one must know and learn.