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A limited liability company (LLC) is a type of business entity you can register in your state. The main purpose of an LLC company is to limit the personal liability of its owners—like a corporation—but it also allows the business to operate with simpler, more flexible tax requirements.
An LLC isn’t always required, but many small business owners form an LLC for personal liability protection. Having an LLC can also help you open bank accounts, enter into contracts, hire employees, and get necessary business licenses and permits.
By forming an LLC and keeping your personal finances separate, your personal assets are protected from business liabilities.
Compared to corporations, LLCs are typically easier to start and have simpler rules for things like record-keeping.
You get to decide how you’re taxed—as an LLC or a corporation—to maximize your potential savings and minimize tax liability.
To form an LLC, you’ll need to file articles of organization (also called a certificate of organization or certificate of formation) with your state. Each state has its own rules, but our experience across all states helps us keep things moving when we file on your behalf.
No matter where you live, there are a few basic steps you’ll need to follow to get your LLC up and running.
It’s wise to check your LLC name against similar businesses in your area. We include a name check with our formation services and can reserve names for you.
Also called an agent for service of process or statutory agent, an RA receives your LLC’s legal notices during normal business hours. Most states require this, and we can do it for you.
Also called a certificate of formation, this doc contains basic details about your LLC. When we file this for you, it’s typically sent to the Secretary of State.
You’ll also need to apply for any specific permits or licenses that may be required for compliance, although it’s wise to wait until your LLC’s formation documents are approved.
This outlines your LLC’s rules for everything from decision-making to how to distribute profits. Our templates make it easy for your LLC’s owners to define their rights and limit disagreements.
Most businesses need an EIN (also called a Federal Tax ID Number)—like a Social Security number for your LLC—for banking, taxes, and hiring. When it’s time to get yours, we can help.
Both LLCs and corporations protect owners’ personal assets from business liabilities or debts. But they have some key differences, including:
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