Incorporate your LLC Online
Advantages of an LLC
- Limited Liability Protection: Only the LLC is liable for the debts and liabilities incurred by the business.
- Pass Through Taxation: The profits and losses of the business pass through to its owners, who report them on their personal tax returns.
- No State or US residency requirement: There are no citizenship or residence requirements for ownership of an LLC.
- Tax Advantages: You can decide whether it's better to file your taxes as a "disregarded entity" or to get corporate treatment.
- Flexible Profit Distribution: The net income/profits may be allocated to the members in different proportions to their ownership percentage
- Less Corporate Formalities and Paperwork: LLCs are subject to limited state mandated annual filing requirements and ongoing formalities.
starting at:$39.99*plus statefiling fees
What is an LLC and why would you need one?
An Limited Liability Company or LLC, as it is commonly known, is a legally recognized entity with a simple corporate structure. As you probably know, a legal entity stands on its own before the law and is responsible for its assets and profits while it is also liable for its debts, lawsuits, etc. Since the company bears its own fiscal and legal responsibility separate from its owners, it shields the owners from direct liability from company actions, thus providing limited liability.
LLC have become the most popular type of company for small business due to its simple structure. An LLC maybe manager-managed or owner-managed. This means, the owner maybe the manager and run the company or the company may have a manager other than the owner. Additionally, an LLC does not have all the corporate requirements that are mandatory for corporations.
LLC owners have the advantage of Pass-through taxation directly to the owner’s personal tax return. This serves a dual purpose: First, it avoids double taxation (Double taxation occurs when a company pays taxes over its profits and then the owner pays taxes over the company’s distributions in their personal return) and Second, the profits and losses of the business pass-through to its owners, who may claim profits and deduct losses on their personal tax returns which simplifies the preparation and filing of tax returns.
Unlike LLC Corporations,S Corporations provide the benefit of Pass Through taxation but require owners to be US Citizens or Resident Aliens (i.e. green card holders), an LLC may be owned by foreign alien and does not have a residency requirement for its owners to benefit from its Pass-Through Taxation advantages.
Are you operating your business under your name and have no protection from legal claims? Protect your assets today – Start your Company and be your own boss!