One of the great things about entrepreneurship is that no matter what industry you are in, you can probably start your own business. If you are asking yourself, “What is the best company to register an LLC?” The answer is: just about any type of business that would qualify. Whether you are beginning your own tech start-up or opening a restaurant, you can select a Limited Liability Company (LLC) as your legal structure. Generally speaking, it is prudent to do this in the early stages of launching your venture. As you are hiring a team, doing market research, and creating an advertising plan, you are going to want to think more broadly about how you plan to manage your business, as well as how you wish to address your tax and liability concerns. By forming a limited liability company, you can ease your mind and better position your business to succeed, regardless of what industry you are in.
There are, of course, a number of different ways in which you can legally structure your organization. Some modes require little to no paperwork, while others are much more rigid in their requirements. For example, if you are starting your own business as a sole proprietorship–which is not uncommon–you will not need to submit any forms to your local Secretary of State’s office. If you are interested in forming a corporation, however, you can expect to draft articles of incorporation and adhere to certain reporting requirements. In most states, an LLC falls somewhere in the middle of those two setups–you can expect to process some paperwork, but they are relatively easy to create and maintain.
What Is a Limited Liability Company?
Before you set out to form your Limited Liability Company, it is likely helpful to know a bit about what this legal structure is. On a very basic level, a Limited Liability Company is a business entity that affords its members (owners) the protection of limited liability. As a business owner, you need to be ready for the unexpected, which can unfortunately mean lawsuits or even bankruptcy. In an LLC, legal judgments made against your business cannot go after your personal assets. In other words, if your business loses a lawsuit, you do not need to worry about losing your house or your 401(k). As this takes a great deal of risk off the table, LLCs have a broad appeal among business owners.
In a Limited Liability Company, you also receive worthwhile tax benefits. More specifically, the Internal Revenue Service (IRS) views LLCs as “flow-through” organizations, which as you will discover, can be appealing. With this designation, profits made by your business are not subjected to taxation until they flow through to the members of the LLC, who will pay taxes on their salaries. By setting up an LLC, you can potentially avoid paying taxes “twice.”
Another draw to forming an LLC is that it is a structure that is available in all 50 states. This comes in contrast to, say, a Limited Liability Partnership (LLP), which is not. Each state will have its own requirements, but for the most part, an LLC will not call for much in the way of annual reporting. Between the benefits granted and the ease of maintenance, LLCs are popular in the business world for good reason.
How to Start an LLC
To start your LLC, you will first want to choose a name for your business that falls within the parameters of your state’s requirements. Some places will ask that you have “LLC” or “Limited Liability Company” in your name, while others will not. Also, in most states, your business’s name cannot match or be deceptively similar to other businesses on record. You should also plan to appoint a registered agent. This person will be in charge of receiving all legal and government correspondence on behalf of your organization.
With your name decided on and a registered agent appointed, you can get to work on some paperwork. In some states, this is called “Articles of Organization” or a “Certificate of Organization.” This document should include the name and address of your business, some basic information about your LLC’s members, and the contact information for your registered agent. Once completed, you can submit this document to your local Secretary of State’s office for processing.
What Is the Best Company to Register an LLC? Yours!
Still, wondering what is the best company to register an LLC? Well, the answer is the one you own. At Corporation Center, we can help you get your LLC up and running with our easy-to-use online forms. Simply locate your state in our side navigation menu and you will be brought to the fillable form that is right for you. If you have any questions about our private service, please contact us by email or phone, or visit our Frequently Asked Questions page.