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Form a LLC |
LLC Formation Services - $75 + State Fees
We can form Limited Liability Companies (LLC) in any of the 50 states. Our LLC formation package includes the following:
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- Company name availability check for the
state you select
- Preparation and filing of your articles
of organization
- Payment of the state filing fees for
your selected state
- Payment of the initial franchise tax
(if this tax is due upon filing of the articles)
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The Benefits of Forming an LLC
A limited liability company (LLC) is an ownership structure that's similar to a corporation. In fact, it uses features of both partnerships (or sole proprietorships) and corporations .
The advantages can be summed up as follows:
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- It garners credibility with your clients
- You can deduct some kinds of expenses
- You can reduce your audit risk
- Your personal assets are protected through
liability protection
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It does take more effort to set up an LLC, than it does a sole proprietorship or partnership, but once it's going, maintaining it is a great deal easier than running a corporation. Here are the advantages of forming an LLC in some greater detail:
1. Taxation benefits. Any business profit or loss is passed on to the owners, so that they pay the taxes individually. The taxes are referred to the owners in their personal income tax returns - so paying tax at the business level is avoided in LLCs.
2. Potential customer service. If you're establishing a new business, the most important task is to earn credibility with potential clients, partners, suppliers and staff. That's more easily achieveable with an LLC.
3. Limited Liability protection. Just like shareholders of a corporation, all LLC owners are protected from personal liability for business debts and claims. That means they're not individually responsible for any debts incurred during business dealings. Because of this, the owners' assets (such as land, or other property) can't be seized and sold to pay the debts. In sole proprietorship, the owner is entirely personally responsible for any loss or debt and will have to use personal assets to settle these.
4. Better than corporations. Even corporations are liable for annual requirements and formalities imposed by the government. Conversely, LLCs have fewer restrictions and accountabilities.
5. Organizational freedom. As opposed to corporations and sole proprietorships, the LLCs are independent in terms of deciding on their organizational structure.
6. No restrictions. For an LLC, there are far fewer restrictions than there are for an S corporation. LLCs can have as many owners as they need.
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