Starting a Business? Consider Starting an LLC to Go With It
Posted by admin on Jan 17, 2009
A limited liability company, or LLC, can be best considered to be a hybrid between a partnership and a corporation. To put it simply, an LLC offers many of the benefits of a corporate structure but not all of the protocols usually associated with a corporation.
The multiple owners, called members, of an LLC get looked upon as a partnership for tax purposes. It passes through taxes on income directly to its members, so, unlike a corporation, the LLC itself never pays taxes.
An LLC does not suffer from the double-taxation problem that a corporate structure faces. To simplify this, due to the fact that the tax liability is put on only the owners, income tax is paid just one time. However, a limited liability company must still pay state (assuming there is any) and federal payroll taxes.
At the time of LLC incorporation, a decision is made about how to handle income taxes. You can be taxed like a sole proprietor, a C corporation, or an S corporation. The great thing about a limited liability company is that you get to decide how to handle paying taxes.
Assuming that the LLC is properly set up, and personal and business happenings are kept completely separate, the members can look forward to certain personal liability protection. This potential protection is a big reason why people choose to form an LLC instead of running a business as a sole proprietor. Also, a company earns more reverence when it has a formal business structure, such as a limited liability company.
Forming an LLC is done by a person who does not necessarily have to be an owner. You can actually use an online company to form your LLC for a very nominal cost, which means you are assured that the structure is properly set up.
A member’s financial liability is limited to the amount of money contributed by that member. When you are operating as a limited liability company, you can bring in multiple partners, who can either be actively involved in the company, or just contribute money.
A limited liability company is a business organization, or business structure, that is very very much like a corporation, but offers its owners more flexibility. Incorporate LLC is most suitable for a smaller business in which there doesn’t have to be too many owners.
The LLC is a fairly new form of business entity, at least in the US. As a matter of fact, as early as 1986, LLCs were only allowed in two states. Today, every state recognizes this business structure.
Bizfilings and Starting an LLC
Posted by admin on Nov 20, 2008
When you decide to go with a limited liability company, or LLC, as the structure you choose for your business, your decision is a good one. Having the proper business structure for your small business will help you benefit from certain tax benefits and liability protection. Once you have settled on forming an LLC, you have to decide how you are going to go about this.
In recent years, several reputable online businesses have been created, whose speciality is limited liability company creation. BizFilings is one of these companies and they are a leader in business formation. As a matter of fact, creating corporations and limited liability companies is the only thing that BizFilings does.
With incorporation LLC packages costing from only $115, plus the filing fees required by your state, BizFilings makes the starting of your LLC not a very expensive proposition. And with options for additional services, BizFilings has something for just about any new company that is being formed.
Creating a LLC is a wise choice when you are an entrepreneur. An LLC allow you to have many of the benefits of the corporate structure, but without all of the corporate headaches. As always, looking to a professional for advice is always a great idea before you choose a business structure for your situation.
One of the nice things that BizFilings offers with all of the LLC creation packages is registered agent service for the first 6 months. A registered agent is a person, or company, that that is available to receive any legal paperwork for your company. You need to have someone that is always available in order to accept these documents, so having a registered agent is a great thing to have.
Once you have settled on creating a LLC as the choice for the business you are starting, then you can really save a bunch of money by choosing BizFilings to create your limited liability company for you. Ensuring your LLC structure is set up correctly is very important, so going with a service such as BizFilings is very important. Choose BizFilings and see how they can help you.
