13 Best LLC Services 2021
If you are on the lookout to form an LLC, you already know that there are a handful of routes. To be precise, many entrepreneurs are uncomfortable with the idea of registering an LLC themselves. On the other hand, many of them don’t have the budget to hire an attorney. So if you fit this description, then don’t fret!
You can find a plethora of LLC formation services that can take care of the paperwork and other extensive tasks at a fraction of what an attorney would charge. There are so many LLC formation services that it can be quite confusing to select the best one. Here are some of the top LLC formation services that would help you register your dream startup as an LLC.
Are you on the lookout to get the best possible value for your LLC formation? If your answer is yes, then ZenBusiness is the best option you will ever get. Quite impressively, they are the only company that offers LLC formation service for just $39, including state fees, and comprises all the features. Well, it is normal for you to think that this is one of their lowest value packages. However, note that is not the case. Even their cheapest LLC formation services have everything you will require and nothing you don’t! They will also provide registered agent service with their in-house CPAs.
Free Registered Agent
One of the key highlights of ZenBusiness is that they would provide you with one full year of registered agent service with all their LLC packages. So even if you select an entry-level LLC package, you will get a full year of registered agent service. And once you have exceeded the one-year period, you can renew the registered agent's services for $99 per year. Quite impressively, this registration charged by ZenBusiness is lower than most of its other competitors.
One of the key highlights of ZenBusiness is that they have fully automated their business formation processes. What’s more, they have also automated the ongoing compliance services, which would be quite excellent for users. This allows them to form business faster than their competitors.
- Great features and prices
- Inclusion of registered agents
- Positive customer reviews
- Fairly new in the domain of LLC formation
2. Inc Authority
Like most of its competitors, Inc Authority also offers a free LLC service in addition to the paid packages. Quite impressively, it has been in existence since 1989 and has formed more than 130,000 business entities over the years. To be precise, the website of the Inc Authority is not that user-friendly you would come across. However, they offer various types of advantages, making them well worth looking for entrepreneurs on a budget.
Features of Inc Authority
Well, Inc Authority is known for facilitating a basic LLC formation for free. Note that though the website states that it offers free services, you have to pay for the filing fees, which vary from state to state. Also, if you need LLC essentials like EIN, you have to pay extra. But note that Inc Authority is an overall good deal considering the features it provides.
It can help you prepare and file important business documents. It would also provide you with a business name check which is a big advantage. Like ZenBusiness, Inc, Authority also has one year of free-agent service. You will also get tax funding analysis along with business funding analysis.
- Easy to use checkout process
- Responsive and supportive customer service
- Free LLC formation
- The premium features are a bit costly.
3. Swyft Fillings
To be precise, starting an LLC may be costly, and you will have to pay for a variety of services like legal services, state fees, and many more. Quite impressively, Swyft Fillings understands the plight of the entrepreneurs and thus offers affordable company formation services. Along with ZenBusiness, Swyft Fillings offers the cheapest and affordable services. Note that their LLC formation package costs only $49 along with state fees.
It is a basic package and comprises tons of value as it provides tax consultation and a one-year domain name for your business. If you need more services, you can opt for their $149 package, which would also offer you an LLC Operating Agreement along with a federal tax ID number. But the only bad thing about Swyft Fillings is their registered agent service. Swyft Fillings doesn’t have the registered agent service included in any of their packages. In other words, unlike other LLC formation services, you have to pay for the use of registered agents.
Fast Turnaround Time
When you order through Swyft Fillings, they would immediately commence the procedure of forming your new business. Note that they have the fastest processing times. So this permits you to get your business up and running as soon as possible.
Personal Customer Support
Another key highlight of Swyft Fillings is that they have a dedicated business specialist to deal with your issues. What’s more, you would be given their direct contact number along with the email.
- Provides you with great value for money
- Money-saving payment options
- Provides a year of free web domain
- No free registered agent service
4. Northwest Registered Agent
Northwest Registered Agent mentions this list as they are best when the context is about providing customer service. Quite impressively, as per many users out there, their customer service is perhaps one of the best. Whether you are an entrepreneur or a startup, they make it easy for everyone to form an LLC.
But the bad thing about Northwest Registered Agents is that they tend to charge higher. However, if you are ready to pay these high fees, you would have the opportunity to experience excellent customer service. But we all know that when you are trying to set your business up, the price would hardly matter to you.
Free Registered Agent
Along with excellent customer support, their registered agent service is something you can look up to. Their registered agent service is there for a full year when you opt for them to form your business. After the first year, you have to pay $125 every year. As you can see, this price is quite lower than most of the other LLC formation companies. Moreover, Northwest Registered Agent is perhaps one of the only national service providers that scan every document.
Reasons for their Popularity
Well, simplicity is the main reason behind the popularity of Northwest Registered Agent. What’s more, the ordering procedure is streamlined in two specific ways. First, they would eliminate the confusion by narrowing their features to select a few. Second, it just takes a mere ten minutes to complete the order form.
- Includes registered agent service.
- Best customer service
- Scans every document thoroughly
- High price points may be an issue
There is no denying that Incfile is an industry leader and thus deserves a spot on the list. Quite impressively, they can help you form an LLC for free. One of the key highlights of Incfile is that they provide great customer service before, during, and after you place your order for company formation. When compared to ZenBusiness, Incfile has a greater amount of positive reviews on the online platforms.
Features of Incfile
If you want to avail of premium services apart from the $0 package, their $149 gold package provides a great value. Moreover, these packages have several additional features that can be quite handy. The entry-level silver feature would also entitle you to receive a federal tax ID number or an EIN. What’s more, you would also receive an operational agreement, a bank resolution, express shipping of all your company documents, and a personalized binder.
Reasons for their Popularity
One of the primary reasons behind their popularity is that Incfile guarantees that they will file your formation paperwork with the authorities in just one business day. So if you are in a real hurry to commence your business, entrusting Incfile with your documents is ideal. They also have a good reputation for efficiently filing the formation documents for all their customers. So if you are a free customer, they would file your papers in a single day too.
If you want to operate your business in other states, Incfile will apply for your foreign LLC status.
Incfile will assess which licenses and permits your business needs to operate. They would then send you the applications.
Free Registered Agent
Like many other LLC formation services, Incfile also offers 12 months of registered agent service. After the free period gets over, you would have to pay $119. As you can see, this annual price is lower than what most other services charge.
- Great customer reviews
- Superior ease of use
- A wide array of services
- Full of third-party offers
LegalZoom is another service that has assisted millions of customers in starting and operating their own businesses. There is no denying that LegalZoom has a lot of brand power, thanks to their aggressive advertising. Overall, they are the most well-known LLC formation service out there. To be precise, the popularity of LegalZoom is unquestioned. However, they do have some features which may seem a bit odd to you. For instance, their customer reviews are a mixed bag, and their prices are too high for what you actually get. But you cannot deny their popularity and rise to fame either.
Longest Customer Service Hours
If you need assistance from the customer support from LegalZoom, count yourself lucky! Quite impressively, LegalZoom boasts of the longest hours of availability than compared to other company formation services.
Reasons for their Popularity
One of the main reasons behind their success is their ability to satisfy customers 100%. For instance, when you make any purchase from LegalZoom, they would provide you with a generous two moth return window to help you decide whether you are satisfied or not. And if you want a refund, they would readily agree without asking any questions.
LegalZoom will create and file your annual report for just $55. So as you can see, it is one of the lowest price points in the industry. In other words, it makes sense to order annual reports from LegalZoom.
- Comprehensive business advisory plans
- A high volume of clients
- Extended customer service hours
- Mediocre customer feedback
7. Rocket Lawyer
Quite interestingly, Rocket Lawyer handles an incredible amount of clients per day. Over the years, they have addressed the concerns of more than 20 million clients. To be precise, Rocket Lawyer has also got strong customer reviews, making them an exciting business service option.
One of the key highlights of Rocket Lawyer and its offerings is its legal services. This plan provides customers with a consultation with lawyers, discounts on business services, and more. Quite interestingly, if you are a new customer, you would receive your LLC's incorporation services for free. But if you want to purchase the LLC formation services, it may cost you a bit more money.
Popular for its Legal Services
Note that there is no point in using Rocket Lawyer if you use it for LLC formation services. The best quality of Rocket Lawyer is its legal services. With a subscription plan for just $39.99 per month, you would reap a vast amount of benefits. Also, Rocket Lawyer provides you with a subscription trial of seven days which is free. In this time period, you can enjoy a free incorporation service for all the new subscribers. You would also get a variety of interesting features like attorney consultations.
Reasons behind their Popularity
Rocket Lawyer is one of the most reputed LLC formation companies in the world market. They offer a plethora of services that revolve around the legal services subscription. And if you are looking for something more than just company incorporation, Rocket Lawyer is an ideal option. It also comes equipped with a selection of other services that would help you operate your new startup.
- Tons of legal features
- Strong customer reviews
- Solid customer service
- You wouldn’t find any advanced features.
In case you don’t know, MyCorporation has two big benefits over other LLC services. The first one is their experience. Note that MyCorporation was first established in 1998, and they have served more than one million clients since then. The second advantage is the excellent customer feedback of MyCorporation. Quite interestingly, they have hundreds of high-quality reviews available. But they do have some issues with the pricing, which prevents them from earning a top spot in this list.
Reasons behind their Popularity
Quite impressively, MyCorporation has a great reputation for being a transparent and open company. They seem to live up to that opinion and reviews. What’s more, the CEO encourages her clients to reach out to her via social media platforms.
Custom Logo Design
MyCorporation offers custom logo design services. In this manner, you no longer have to rely on third-party services.
Monitoring of Trademarks
To be precise, MyCorporation will not just help you register a trademark. They will actually offer you comprehensive trademark monitoring services to ensure that no one is violating your privacy.
Strong Customer Reviews
MyCorporation has tons of positive customer feedback, which depicts that their customers are quite happy with their offerings.
- Great customer feedback
- Lots of experience
- A plethora of additional features
- Excessive additional fees
BizFilings is a well-rounded LLC formation company that does everything quite well. Their packages are reasonable, but they will fail to impress you. On the other hand, their customer service is good, but not that great. So among all other LLC formation companies, they fail to impress. However, if you are looking for a trustworthy and experienced service provider, BizFilings will be a good choice for you. In case you don’t, they have the unique record of completing more than 500,000 business filings since their inception in 1996.
Six Months Registered Agent
While BizFilings is not as impressive as its other competitors, it offers a registered agent service for six months. But this feature is also quite valuable and a practical choice among entrepreneurs.
Reasons behind their Popularity
BizFilings is quite popular because of its refund policies. What’s more, they assure you of all business filings for the life of your company. Moreover, if they commit any kind of mistake, they would refund the additional fees so that their clients can never be at a loss.
Customer Support Availability of BizFilings
Quite impressively, BizFilings have got top-notch customer support. Moreover, their availability hours are longer than most of the other LLC formation services operating out there. In short, you don’t have to take time out of your schedule to contact BizFilings.
If you want to expand your business to additional states, BizFilings will offer you foreign qualifications. In other words, you would be able to operate a compliant business in any state for just $219.
Well, it is an unfortunate reality that not every enterprise lasts forever. By paying just $179, you can formally dissolve your company with BizFilings.
- Plenty of experience
- Extended customer support
- Six months registered agent.
- Not great pricing
In case you don’t know, the ownership group of CorpNet has been in business since 1997. They have helped more than 100,000 businesses in their two decades of operation in the industry. Nowadays, you would find a lot of companies offering company formation services. However, CorpNet has earned a dedicated customer base and has the requisite experience to do the job correctly.
Reasons behind their Popularity
One of the key highlights of CorpNet is that they would help you prepare and file the organization's articles. Quite impressively, they would also search through your state’s business database to ensure that there isn’t any other business out there. It also comes equipped with a corporate compliance tool that exudes practicality to clients.
Preparation of Documents within 24 hours
One of the key highlights of CorpNet is that they would help you prepare your document within 24 hours to the state authorities.
CorpNet would also send you a hard copy of your company formation documents which is quite great.
- They have hundreds of positive customer reviews.
- Every LLC formation service is covered with a 100% satisfaction guarantee.
- Reliable customer service
- Prices are deceptive
NCHINC or Nevada Corporate Headquarters Incorporated offers you a complete startup solution. Quite impressively, NCHINC claims to form your business within 24 hours with LLC registration. They also offer certificates of good standing for legitimacy.
You would also get an employee identification number by registering your business as an LLC with NCHINC. One of the key highlights of NCHINC is that they have a personalized record book. In other words, you will have access to custom stock certificates for proof. They would also help you with bank account resolutions to establish banking.
Reasons behind their Popularity
With NCHINC, you would avail one year of personal startup advisor support. Quite impressively, you can contact them for local licensing and tax rules. Nevada registered agent service is also available to avail public and legal addresses for your business. NCHINC would also provide you with an analysis of your business requirements.
Legal and Tax Experts
You would have access to experts who would answer your queries. What’s more, you will also avail accounting and annual tax filing of your business.
- Quality advice on tax and accounting
- No minimum capital requirement. ‘
- Enhanced privacy
- Fluctuating pricing model
Well, LegalNature was created to provide businesses access to legal documents without the high cost of formal legal representation. Apart from LLC formation, they would help you on a range of legal matters for your business.
With LegalNature, you can create, download and print your business’s legal documents at any time and from any device. One of the key highlights of LegalNature is that they have everything in store for your legal needs. For instance, you would have access to a secure, personalized dashboard that stores all your legal forms.
Reasons behind their Popularity
One of the main reasons behind the popularity of LegalNature is that they have a safe and secure environment. Moreover, you can access their systems anytime and anywhere. Their customer service experts are always eager to help you with your queries.
Overall, LegalNature is one of the best ways for businesses to sort out legal complexities. Also, it is a reliable and trustworthy platform as it has got over 3000 five-star reviews from its clients.
Legal Resources Center
LegalNature also has a dedicated legal resources center that exudes practicality to users. You can access this resource center to have solutions to all your legal issues at affordable rates.
- Vast resource center for legal documents
- Flexible pricing
- Good customer service
- It doesn’t have a user-friendly interface.
If you need straight talk and no upsells, and a quick business formation, BetterLegal is the preferred option. Quite impressively, they don’t have any confusing packages. In short, the LLC service has only one formation package which gets your job done. BetterLegal claims to set up your business within 10 minutes and get your paperwork filed within the same day. In other words, you can conduct business within two days, which is quite commendable. It charges a flat fee of $299, including state fees for LLC and corporation formations.
Reasons behind their Popularity
One of the primary reasons behind their popularity is their uniform pricing structure. By paying just $299, you can avail yourself of various types of services that exude practicality. Also, this price includes the filing and preparation of the operating agreement, certificate of formation, and EIN. Also, BetterLegal would set you up with a registered agent for $10 per month.
Comprehensive Information Center
The info center of BetterLegal comprises articles and resources written by legal experts. Users can enter their questions into a search window to get the desired answers. It also offers a free LLC name search based on states.
- Free website development
- Free Tax analysis
- Registered agent service
- The website lacks important information.
Let’s hope that the above information would help you to register your company as an LLC. With these LLC formation companies, a majority of your issues would be handled efficiently.
Guide to Choose the Best LLC Services
Here is the exclusive guide to choose the best LLC services for your company. Let us get started.
How to Create an LLC?
Well, establishing a limited liability company, also abbreviated as LLC, may seem challenging at first. But the process of forming it can be relatively straightforward once you possess a clear understanding of its working mechanism. Note that if you are a startup or a small business, LLC can be an excellent option.
With LLC, you can avail liability protection along with a flexible tax and management structure. Much like a corporation, an LLC provides personal liability protection to its owners. However, an LLC is much more flexible than a corporation as the profits and losses can be allocated among the members.
An Overview of an LLC
Before delving deeper into the intricate details, it is important to understand an LLC. A limited liability company or LLC is a type of business structure relevant in the United States. In an LLC, the owners are not personally responsible for the company’s liabilities and debts.
LLCs comprise limited liability and, much like a corporation, pass through taxations. However, unlike a corporation, the owners of an LLC will pay taxes on the business's profits via their individual tax returns. Because of liability protection, an LLC is an appealing idea for those businesses which are just starting.
So if you are an entrepreneur and want to protect yourself from individual responsibilities and lawsuits, LLC is your preferred choice. Note that once a business becomes an LLC, it becomes its own entity, and the legalities are separated from the owners. Moreover, an LLC can have its own assets along with bank accounts.
LLC owners are permitted to loan documents, sign leases, and file a lawsuit if they arise. And because an LLC is a separate legal entity, the LLC members aren’t liable for obligations and business debts. But it is recommended that you first assess your business goals and decide whether or not to opt for LLC.
How Appropriate is an LLC for your Business Aspirations?
Quite interestingly, there exists a wide variety of business models to consider when starting your own company. So how do you decide if LLC is the right company formation for you? Let’s glance at some of the common types of business formations and assess their efficacy against LLCs.
Differences between an S Corporation and LLC
Well, an S Corporation is much like an LLC as it protects the owners' personal assets and helps avoid double taxation. However, when the context is about flexibility, no company formation structure can match an LLC.
Besides, S Corporations are not that flexible when compared to an LLC. To be precise, an S Corporation is more suited for your business if it is more complex, comprising a structured framework. Here are some of the S Corporation company formation limitations, which you should be aware of.
- Not more than a hundred shareholders are permitted.
- Owners must be citizens of the US
- Comprises only one level of taxation
- S Corporation comprises strict administrative requirements.
Differences between a Sole Proprietorship and LLC
Well, operating a business with a sole proprietorship is low-cost and straightforward. However, owners would not get liability protection like an LLC. Also, there is no need to file any paperwork as the individual owner owns the business. Quite interestingly, the owner reports profits and losses from the business on their personal tax return.
But if you observe closely, a sole proprietorship can be a risky choice. This is because the business owner is personally responsible for all types of liabilities and debts associated with the organization. The key difference between an LLC and a sole proprietorship is business and personal.
In a sole proprietorship, the personal and business expenses are the same. On the other hand, in an LLC, the personal and business expenses are different. So if someone sues your business, your personal savings can be greatly affected.
Differences between Limited Liability Partnership and LLC
An LLP and LLC are quite the same but differ in some areas. In the case of an LLC, all the owners are protected from being personally responsible for debts and lawsuits. On the contrary, an LLP provides liability protection to each partner for direct investment. This implies that the business partners are not responsible for the actions of each other.
But the laws governing the LLPs differ from state to state. This is the reason that the parameters of liability also differ to a great extent. So if you are interested in forming an LLP, you have to analyze the applicable laws in your respective state. Unlike an LLC, an LLP should also have more than one owner.
Differences between an LLC and a General Partnership
Note that forming an LLC requires various types of paperwork. You have to submit the documents to the secretary of the state and pay the filing fee. On the contrary, when you are forming a partnership, there are fewer requirements for paperwork. Moreover, a general partnership can be put into motion through oral agreements. Note that there are two things that you should always consider when opting for an LLC or a general partnership.
To be precise, an LLC is much more flexible and allows owners to select their own percentage of ownership in the business. On the other hand, in a general partnership, both the parties forming the company should possess equal ownership rights.
- The Context of Liability
Note that general partnerships don’t provide the partners with liability as an LLC does. So as you can see, the partners or the owners are responsible for paying company debt. Even if the fault occurred due to the other partner, both the partners are equally responsible for paying the debts.
Top Things you should know before starting an LLC
For many business owners out there, an LLC is somewhat of a hybrid between a partnership and a corporation. With an LLC, business owners can have the advantage of limiting personal liability. Quite interestingly, all the states in the USA recognize LLCs as a valid business structure. What’s more, you would also find business owners using LLCs to decrease financial risk while maintaining tax simplicity.
There is no denying the doubt that LLCs are becoming more popular among small and medium-sized business owners. What’s more, they are easier to start and manage than other company formations and comprise fewer formalities. Quite impressively, they also offer a great amount of flexibility on the management.
It is worth mentioning here that any form of business can be an LLC. It is a popular form of business entity that makes it possible to exist within all industries. So here are some important things which you need to consider before opting for an LLC.
In case you don’t know, LLCs create separation between owners and the business. If you own a partnership or a sole proprietorship, you and your business are the same people from a legal standpoint. As the name suggests, an LLC limits personal liability and puts a legal separation between the owners and the business.
What’s more, the LLC is responsible for its own debts and obligations. So in case the company issued on legal grounds, the owners would be spared. However, there would be some situations where you would find owners liable personally. Thus, you have to manage your organizational setup as your business changes carefully and grows to keep benefiting from the limited personal liability.
Great Reduction in Corporate Formalities
Well, limited liability is one of the key highlights of an LLC. Also, note that you have to deal with fewer formalities in the case of an LLC. But forming a formal business entity comes with some additional corporate formalities along with extensive paperwork. There is no point in denying that an LLC has reduced formalities compared to a corporation and needs lesser paperwork to get established.
Here paperwork refers to record-keeping, minutes, filings, etc. Also, there is no need to hold annual meetings or keep comprehensive reports in the case of an LLC. So as you can see, LLCs are easier to manage from an administrative standpoint.
In case you don’t know, corporations have a fixed management structure that involves shareholders, the board of directors, and officers who all have their own role to play. They make sure that through their activities, they can make the corporation operate smoothly. These shareholders should meet every year, elect directors, and have a say in the company's various administrative decisions.
On the contrary, LLCs don’t have that formal structure and can establish a management process in such a way that makes more sense for the business and the way it operates. In other words, this allows for speed and flexibility when the LLCs need to make decisions about operations, plans or to undertake a specific decision in the company's goodwill.
The Context of Taxes
Well, taxes can be a great advantage for LLCs. Unless you select to be taxed like a corporation, you will probably be subject to taxes concerning self-employment. In other words, this implies that all the profit would be passed through to the owners. So as you can see, it is imperative to consider your situation when determining how your LLC would be taxed. In this manner, you can avoid paying higher taxes than you may be able to avoid otherwise.
Depending on what type of business you are commencing with and the amount of capital you require to get it off the ground, an LLC company formation may provide you with some initial difficulties while raising capital from outsiders. It is important to note here that the C-Corporations are more attractive investment opportunities as they offer stocks that don’t require the holder to pay taxes until the asset is sold. It is important to note here that an LLC requires complicated agreements to raise capital from investors, and many investors simply don’t invest in companies set up as LLCs. However, the broader advantages of an LLC outweigh this concern for new-age entrepreneurs.
Ways to Start a Limited Liability Company
Note that LLC requirements vary from state to state. So you must be well-aware of the laws in your specific state before proceeding. So let’s take a glance at the steps involved in forming an LLC.
Finding a Name for your LLC
Now that you have decided to form an LLC, it is important to find an appropriate name for your dream startup. While finding the name of your LLC, make sure that the name is unique. When naming your LLC, don’t go for names that others have used for their organizations. Quite interestingly, the rules as to how different your LLC’s name must differ from state to state. Also, never forget to use the word LLC at the end of your establishment’s name.
While finding your LLC's name, it is imperative to carry out your research work to check if the desired name is available. You can access the Secretary of the State website to find the list of available names for your LLC Company. Also, you have to be aware of the trademarks. There are two kinds of trademarks in the form of federal and state. Also, it is important to register your trademark while establishing your business’s name.
A state trademark is less costly and simpler to avail. On the other hand, federal trademarks are costly and usually take longer to get. Also, each state has different regulations when the context is about naming an LLC. You would find that specific words are prohibited, including those which are regarded as obscene. Make sure that you reserve your name so that no one else can use it later. A majority of states would reserve your desired name for a fee, so you don’t have to worry about someone else taking it.
Selection of an Agent
You must opt for a registered agent to shape your dreams of forming an LLC. Note that a registered agent acts as the liaison between the state it is registered in and your LLC. Quite impressively, this third-party individual acts as a point of contact on behalf of business and receives things like tax forms, government correspondences, etc.
Well, you can be your own registered agent as long as you have a physical street address in the state in which your LLC is to be registered. However, hiring an outside agent has its own set of benefits as you would get flexibility and privacy. It will also decrease the added stress which can emanate from being the agent of your own LLC.
Filing the Certificate of Formation
Note that the official name of the paperwork filed to register your business relies on which state you are filing it in. In usual conditions, this document is known as the Articles of Organization. On the other hand, some states can refer to it as Certificate of Formation or Certificate of Organization. Irrespective of its name, it is being used to establish state recognition of the LLC and outline its details.
Note that you have to check your Secretary of State’s website to supervise the filing requirements. What’s more, you would always require basic information about the LLC and its members, including the name of the LLC and the mailing address. Remember that you may also be asked to state the LLC’s objective and list any current LLC members.
It is important that you also visit the location of the operations. For instance, if you would operate your business from a private home, provide your residential address. The most important step is having an organizer of LLC sign the form. After the organizer signs the form, you are all set to submit it. In a majority of states, you can do that online or via mail.
Get an Agreement for Operations
Although agreements for LLCs' operation are not required in every state, it is a smart move to have one. Note that it is a legally binding document that provides clear and concise definitions of all ownership terms and rules or management decisions. It also protects the owner's personal assets and details the percentages, responsibilities, and voting power of the owners.
In the presence of an operating agreement, your LLC would prevent any form of miscommunication and resolve the conflicts between members. You can use an operating agreement template which would help you to get the basic ideas on how a template should look like.
Applying for EIN and Reviewing the Tax Requirements
After forming your LLC officially, you should consider registering it with the federal government by applying for an Employee Identification Number or EIN. In case you are unaware, an EIN is the business equivalent of a personal security number. It will be needed if your LLC has several partners or employees. You can visit the IRS website to apply for an EIN free of cost. When you apply for EIN online, you will get it immediately.
Benefits of forming an LLC
Normally, you are risking a lot when starting your own business in the form of an LLC. Note that an LLC is a crucial component to the security and safety of your personal assets. Let’s take a glance at some of the advantages of an LLC you should be aware of.
Avoid Double Taxation Issues
LLC owners don’t have to submit two separate tax payments to the authorities. Note that they pay their business taxes through individual tax returns.
Vast Array of Ownership Options
LLCs can comprise various members, and those members may have the freedom to identify their ownership programs. Also, they can be based on each member’s financial contribution to the business or some other criteria.
Flexible Management Structure
As contrary to a corporation, you don’t have to appoint a board of directors for an LLC. In other words, there is no need to have annual meetings to elect the board members. Also, the LLC owners usually have a lot more freedom and flexibility to run their business.
Procedures aren’t Complicated.
In an LLC, the procedures in bookkeeping, meetings, etc., are less complicated. Even though these rules vary from state to state, LLCs still needless paperwork and formality. So forming an LLC has definitive advantages.
Let’s hope that you have a clear idea of how to form an LLC and its benefits. It is always recommended to opt for an LLC formation company that would help you negotiate the specific processes.