Limited Liability Company (LLC) Overview:
Protection of Personal Assets, Ease of Operation
Shield your personal assets the way a corporation does and enjoy ease of maintenance with a Limited Liability Company, or LLC. A Limited Liability Company (LLC) is a business structure allowed by state statute. LLCs are popular because, similar to a corporation, owners have limited personal liability for the debts and actions of the Limited Liability Company. Other features of Limited Liability Companies are more like a partnership, providing management flexibility and the benefit of pass-through taxation. Limited Liability Companies can be organized as single or multi-member entities. RushFiling specializes in fast Limited Liability Company organization.
Owners of a Limited Liability Company enjoy protection against being held personally liable for business debts. You also avoid the double taxation that attaches to the regular corporate structure, since capital gains, tax credits and other tax items are allowed to pass through from the business to the member's individual income tax return. With these advantages, it's understandable that the Limited Liability Company structure is gaining in popularity as the professional's business entity formation of choice.
Protect your personal assets and enjoy easier business operation by letting RushFiling.com set up your Limited Liability Company with expedited filing!
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LLC - How it works:
You won't have to read any complicated instructions, and there's nothing to print out or put together on your end. RushFiling has eliminated the stress of the business formation process with just 3 Easy Steps...
Start by filling out a precise online questionnaire developed by our staff of legal advisors. Part of the RushFiling guarantee is that our professionals handle every order personally and that your data remains confidential.
Our online questionnaire is free, safe & secure! You can save your work & return to it at any time. You may also call us toll free at 1-888-634-8316.
As soon as we receive your completed questionnaire, the experts at RushFiling perform a thorough review of your information - including a check for accuracy and to make sure that nothing has been overlooked. We then fill out all the necessary paperwork and file all required documents with the appropriate state or federal agency.
Once your formation documents are approved, we'll send you a completion package directly to your doorstep. Whether you choose to form an LLC, an LLP or a corporation, all you have to do is sit back and let the specialists at RushFiling take care of business.
Limited Liability Company (LLC) Prices
Let the experts RushFiling take care of business! With us, you'll save time and costly attorney's fees when forming your Corporation, Limited Liability Partnership (LLP) or Limited Liability Company (LLC). One online visit or phone call to RushFiling is all it takes to get started on your business entity formation. Family owned and operated, RushFiling is dedicated to providing quality service for our valued clients.
- Easy! Make only one online visit or call to our online document processing center — we do the rest.
- Affordable! Much less than attorney's fees and competitive in the online market.
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Limited Liability Company (LLC)
A limited liability company is an innovative business structure that's easier to operate than a corporation, provides protection against its owners as far as personal liability for business debts and delinquencies, and allows owners to avoid the burden of double taxation that attaches to a regular corporation. An LLC, therefore, combines the most favorable aspects of a sole proprietorship or partnership plus a corporation.
Can I convert my existing business to an LLC? Yes. Converting a sole proprietorship or a partnership to an LLC is an easy way for sole proprietors and partners to protect their personal assets without changing the way their business income is taxed. Some states provide a simple form for converting a partnership to an LLC (often called a "certificate of conversion"). Sole proprietors and partners in states that don't provide a conversion form must file regular articles of organization to create an LLC. In some states, before a partnership can officially convert to an LLC, it must publish a notice in a local newspaper that the partnership is being terminated. And in all states, you'll have to transfer all identification numbers, licenses, and permits to the name of your new LLC, including:
Going to the expense of hiring an attorney to help your form your Limited Liability Company is not necessary. There's no law that requires you to use an attorney for the LLC formation process. In fact, you may prepare all the necessary paperwork yourself-if you have the time, energy and procedural understanding. We would urge you to take advantage of RushFiling's expertise and fast turnaround time in the formation process.
RushFiling can handle your Limited Liability Company formation with ease. All you need do is supply us with your basic information, either online or by telephone. We'll take care of everything else-including the preparation and filing of all required legal documents with the appropriate governmental office of your chosen state. We'll also follow up by sending you an Limited Liability Company package that includes seals and certificates for your approved LLC formation documents.
The minimum membership requirement in each of the 50 U.S. states, as well as the District of Columbia, is one person. Keep in mind that one-member LLC's fall into a very specific category. You can elect to be treated as sole proprietorship or as a corporation or disregarded entity.
Like the partner in a partnership, and the stockholder or shareholder of a corporation, the owner of an LLC is known as a member. Managers, selected by the LLC members to manage the business, are similar to directors of a corporation. Just as a director of a corporation can also be a shareholder, a manager of an LLC can also be a member.
There are three basic documents you'll need to create and file in the formation of your LLC. The first is your LLC's articles of organization, usually a one-page form that states the name of your LLC, the purpose of your LLC, your registered agent and the names or your members or managers if they're known at the time of filing. This document, sometimes known as a Certificate of Formation, must be filed with the Secretary of State or similar state agency in your chosen state or states. Unless you're a single-member LLC, it's sound business to have all the LLC partners to draw up an operating agreement. Although entering into this type of contract, which defines and delineates issues that include ownership percentages and responsibilities in the running of the LLC, it could prevent confusion and misunderstanding down the line. You will also probably need to apply for a federal taxpayer ID number for tax purposes.
An operating agreement is a formal document that sets forth the basic understanding by and among LLC owners as to how the Limited Liability Company will exist, be managed and be run. It's an internal compilation of issues agreed to by all the members of the Limited Liability Company. It is not required by law that your LLC have an operating agreement, but it is a sound business practice to have such an agreement in place to avoid confusion and problems.
An operating agreement usually sets forth the names of the members and their corresponding ownership percentages, what is expected of each member or manager as far as business conduct and performance, procedures for transferring ownership interests or assigning profits and losses, terms for adding or removing members, and conditions under which the Limited Liability Company may be dissolved. Any other point of concern as far as LLC operation or existence may be included in the agreement.
The risk you run by not having an operating agreement in place, in addition to internal confusion, is that your LLC's limited liability status could be placed in jeopardy. Without an operating agreement, your Limited Liability Company could also be forced to operate in accordance with your home state's default operating requirements rather than the way that you as owners would prefer that your company operate. In projects taken on by your LLC in which a good deal of capital or a substantial line of credit is at stake, some lending institutions may require your LLC to have an operating agreement.
Like sole proprietorships (one-owner businesses) and partnerships, an LLC is not considered a separate entity from its owners for tax purposes. This means that the LLC does not generally pay any income taxes itself; instead, the LLC owners pay taxes on their allocated share of profits (or deduct their share of business losses) on their personal tax returns.
LLC owners can elect to have their LLC taxed like a corporation. This may reduce taxes for LLC owners who need to retain a significant amount of profits in the company.