Limited Liability Company is getting by every passing day in USA and it is one of the smartest ways to start a business without having to pay very heavy taxes. It gives the entrepreneur an option to chose either corporate or partnership tax rules as per their choice. This is one of the major reasons why individuals and groups opt for LLC rather than the traditional structure. But starting an LLC may be a little tough for you if you are not experienced in the trade sector. You tend to worry about how to start an LLC in United States for starting a new business.
Here is an easy guide to start your LLC in five easy steps:
- The first thing that you need to do is select the state in which you want to start the business.
- Provide a name for your LLC is the second thing that you need to do. You need to make sure that no other LLC of the same name is registered in the state while making the selection.
- The next thing you need to do is choosing a registered agent for getting the EIN number. You shall also fill online ein application for getting the EIN number for your business.
- The next thing which is to be done is filing the important articles of the LLC on the website.
- Last but the most important thing you need to do is create an operative agreement for your company. You must include all the important points and terms in the agreement to make things simpler for you.
Benefits of an LLC:
The major reason why you all want to opt for LLC is because it has some distinct advantages over the normal companies. Here is a look at some of the advantages that an LLC have over the normal companies:
Protecting your assets:
The most important reason why people opt for LLC is because they provide protection to the owner’s assets. You are not generally personal in-charge of the company’s assets and debts and thus your personal assets are much better protected. With the proprietorship and partnership accounts, all the responsibility of the company’s liability fell on you.
A Pass through to the tax:
With LLC, the best thing is that no tax is to be paid on the name of the company. The income is generally transferred to the owners and they just have to file their personal tax. So, you can save a great amount of money on the tax.
Another thing with the LLC is that the restrictions put upon it are much less than a normal proprietorship or partnership firm.
Perhaps the reason, everyone opts for LLC rather than Sole proprietorship firm is because people tend to believe more on them. It is because they feel that you have a commitment to the firm and thus your business growth is better. If you want to know more about how to create an LLC, the internet is always there.