The entrepreneurial spirit is the engine that drives the American economy. In all 50 states, businesses both small and large alike thrive, providing jobs and goods and services to everyone. If you are interested in the noble pursuit of starting your own business, you are continuing an American tradition that has endured for generations. Before you can create an operation that is profitable and provides value to your community, however, there are some formalities that you will need to address. One item of particular importance is how you will choose to structure your business as a legal entity. After doing some research, you may find that your best bet is to set up a business LLC.
A Limited Liability Company (LLC) can be a logical choice for business owners of all stripes. With its tax benefits and inherent flexibility, forming an LLC can allow your business to grow in an economically viable way. At Corporation Center, we feature online forms to create an LLC in all 50 states. Read on to learn more about why you should consider this structure.
What is a Limited Liability Company?
If you start looking at the fine print on documents from companies that you do business with, you will likely notice the letters “LLC” popping up frequently. This is because LLCs are a popular method for structuring a business. An LLC essentially combines all of the best qualities of corporations, sole proprietorships, and partnerships to form a hybrid structure that protects business owners.
An LLC will be formed with one or more members. How those members manage the business and the resulting responsibilities can be determined freely. In this formation, members can enjoy limited liability in the event of a lawsuit or bankruptcy. In other words, they will not risk their personal assets in legal matters related to the business.
There are also valuable tax benefits to forming an LLC. Per the Internal Revenue Service (IRS), an LLC is a “pass-through” entity. This designation means that profits generated by the business “pass-through” to the individual members before they are taxed.
Completing The Necessary Paperwork
A perk to creating an LLC is that there is not an overwhelming amount of paperwork to be completed. While every state varies, you can typically count on filling out Articles of Organization (or a document with a similar name). These forms will ask for some details about your business, as well as the members of the LLC.
In most states, your LLC will need to have a completely unique name that does not match anything already in the registry. You will also need to appoint a registered agent. This person’s role will be to receive all legal, government, and tax correspondence on behalf of your business.
Set Up a Business LLC Online Today
If you are ready to form your LLC, why waste your time printing out forms, filling them out by hand, and making a trip down to the post office? Instead, work with us at Corporation Center. We have easy-to-use online forms for all of your business needs. Contact us today.