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Limited Liability Company (LLC) PACKAGE = $300

A Limited Liability Company, commonly referred to as an LLC, is a business entity that combines the tax efficiency and flexibility of a partnership with the limited liability of a corporation.

Our Limited Liability Company (LLC) packages are $300 and include all the necessary documents you'll need to get started and instructions on how to file your documents in your state. If you have any questions you can schedule a free phone consultation here

 

 


LIMITED LIABILITY COMPANIES: LIABILITY, TAXES, OWNERS, REQUIRED PAPERWORK & INTERESTS

Liability Protection

One of the major advantages of an LLC is that it offers the same liability protection as a corporation but without the extra expense and rigid operating requirements.

The owners of the LLC are not personally liable for business debts and/or other liabilities of the company. If you choose to run your business as an LLC, your personal assets will be protected against any debts, losses or court rulings that the company incurs.

Taxes

LLCs are treated like a sole proprietorship or a partnership (depending on the number of members) when it comes to taxes.

Single-Owner LLCs

If you are the sole owner of your LLC, the IRS treats you as a sole proprietorship for tax purposes. In other words, the LLC does not pay taxes or file a return with the IRS, but it passes all profits (or losses) on Schedule C and is submitted with your personal 1040 tax return. PLEASE NOTE: if you leave profits in the company's bank account to cover future expenses, you are still required to pay taxes on that money.

Multi-Owner LLCs

If you have a business partner, the IRS treats you as a partnership for tax purposes. Like Single-Owner LLCs, Mulit-Owner LLCs do not pay taxes or file a return with the IRS, but it passes all profits (or losses) to each partner (according the their percentage of ownership) and they will be required to pay taxes on their personal income tax returns. FOR EXAMPLE: If you own 70% of the LLC, and your partner owns 30%, you will be entitled to 70% of the LLCs profits (or losses), and your partner would be entitled to 30%.

Required Paperwork

Following is the required paperwork:
1. Articles of Organization
2. Operating Agreement
3. Employer Identification Number (EIN)
4. Form 2553 (If you choose to tax your LLC as an S Corporation)

Ownership Interests

An LLC can only sell interests in their company and cannot sell stock.

WHAT DOCUMENTS ARE INCLUDED IN MY LIMITED LIABILITY COMPANY (LLC) PACKAGE:

Articles of Organization

The Articles of Organization (sometimes called "Certificate of Organization") is the document that is filed with the state (typically the "Secretary of State" or "Division of Corporations") where the company is planning on doing business. It is very important that the documents are drafted to meet the State requirement. The Articles generally require the following items:

1. The name of the business. When choosing a business name there are three general rules: (1) the name must indicate that it is a LLC (such as "LLC", "L.L.C", "Limited Liability Company"), (2) the name must be unique and different from any other LLC that is currently registered in your State, (3) the name must not include words that are restricted by your State (such as "Bank", "Credit Union" and "Trust Company"). When selecting a name, you may want to consider some of the following questions: is the domain name available, how does the name look on the web or as a logo, does it reflect my brand identity?

2. The Members of the business. The members are the owners of the business. The LLC will also indicate the ownership percentage of each member.

3. The Managers of the business. The managers are the people that the members choose to manage the company (such as "make decisions" and "sign checks").

4. The Registered Agent of the business. The Registered Agent (also known as Statutory Agent or Resident Agent) is an individual or business entity designated to receive mail on behalf of the business. They are also designated to receive service of process (SOP) if the business was a party in a lawsuit. If you are setting up a business in your own State, you will typically name yourself as the Registered Agent. If you are setting up a business in a different State, you will need to hire a company to act as the Registered Agent. The Registered Agent is required to have a physical address in the State where the business is filed.

5. The business purpose. This is simply a description of the business (such as "Real Estate Services" or "Retail Sales").

Operating Agreement

The purpose of the Operating Agreement is to govern the internal operations of the business (such as ownership percentages, what happens if a member dies, or what if a member wants out). It is one of the most important documents because it structures the financial and functional decisions of the LLC. The Operating Agreement is a legal contract and must be signed by all the members. Once signed, it legally binds all the members to its terms.

EIN (Employer Identification Number)

The Employer Identification Number (EIN) is also known as a Tax Identification Number. It is basically a Social Security Number for a business. Single Member LLCs do not require a EIN.

Form 2553 (Only applicable if you tax your LLC as an S Corporation)

The Form 2553 is filed with the IRS to let them know how your business is going to report income and calculate taxes.