What is a Limited Liability Company?
A Limited Liability Company, commonly referred to as an LLC,
is a legal entity that is formed at the state level to separate
a business owner from his or her business. Limited Liability
Companies are generally intended to provide the limited liability
of Corporations and the pass-through taxation of Partnerships.
How many people are needed to form an LLC?
There are no restrictions, at the federal level or state level,
on how many members your LLC is required to have. You can
either have a multi-member LLC or a single-member LLC.
What is an operating agreement?
An operating agreement is a contract among the members of
a LLC that governs the membership, management, operation and
distribution of any income of the company. The operating agreement
should be drafted directly after the LLC becomes active.
How is an LLC taxed?
An LLC is usually taxed as a partnership for federal income
tax purposes. Each member will report the gains or losses
of the company, in proportion to their member interest, on
their personal income tax return. LLC’s can also elect
to be taxed at the entity level similar to a standard Corporation.
What is the management structure of an LLC?
LLCs are owned and usually operated by its members. Unless
the articles of organization or operating agreement say otherwise,
the management of an LLC is vested in its members in proportion
to their ownership interest in the company. Alternatively,
LLCs can elect to have managers administrate the daily operation
of the LLC. Keep in mind that members are considered the owners
of the LLC where as managers are considered employees of the
LLC.
What is the difference between an LLC and an S-Corporation?
S-Corporations and LLCs function basically the same tax wise
but differ in that LLCs are not required to have a certain
amount of members. The members do not have to be U.S. citizens
or a Permanent Resident Aliens, in fact, the members may be
Individuals, Corporations, Partnerships, other LLCs and even
Non-Resident Aliens. Also, there is no restrictions on the
LLC’s class or classes of member interest.
What is the publication service fee?
Some states require that a notice of organization be published
in a local newspaper. These states include: Pennsylvania,
Georgia, Arizona, and Nebraska. Once your LLC becomes filed
and active we will then file the correct notification in your
local newspaper.
What is a Employer Identification Number?
An Employer Identification Number (EIN) is a number given
to your company by the federal government. You can not hire
employees or open a bank account in your company's name without
obtaining an Employer Identification Number. Think of it as
a social security number for your business.
How do I get started?
If you choose to form your LLC through IncLaunch.com then
all you have to do is complete our secure order form. After
you receive your filed organizational documents you must then
hold an organizational meeting where your LLC's operating
agreement must be drafted. Our corporate kit includes all
of the information and paperwork needed to complete this process.
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Started Now
