Create LLC
Create a Limited Liability Company (LLC):
It’s Easy at IncFile.com!
Create a Limited Liability Company (LLC) – it helps protect owners’ personal assets and provides tax-deductible benefits for both owners and employees. A business owner who did not create an LLC or other business entity structure has everything at risk if the business takes a downturn—home, cars, savings, the works. An LLC structure creates a legal wall between personal assets of the owner(s), and the debts and other obligations incurred by the business.
Plus, LLCs are not taxed as separate business entities like corporations are—profits are “passed through” to the owner(s), who are then subject only to individual income taxes, Social Security, and the like.
While LLCs do have some continuing compliance and reporting requirements, they can operate much more flexibly than corporations. Members are also owners; they run the company and make decisions as a team (although an LLC only needs one member). LLCs in some states can designate certain members to function as “managers.” LLCs are also not required to hold board of directors or shareholder meetings like corporations. Members may have equal voting power regardless of investment, or their voting power could be proportionate to their contribution. Profit distribution is likewise flexible, although the members must agree on how it is be done.
All US states have their own laws governing LLC creation. Some states also have laws that require professionals like doctors, attorneys, and accountants to create a special kind of LLC called a “professional LLC.” Also, an LLC structure may be a good choice if some of the owners live outside the US, since it doesn’t require business owners to be American citizens. Whatever your situation or market, IncFile.com can take the hassle, expense, and bureaucratic mystery out of creating your LLC.
In order to get started, LLCs must file Articles of Organization with the state, and should draft an Operating Agreement. The operating agreement does not officially have to be filed or even written down in most states, but it is nevertheless a critical document.
The first step to create an LLC is composing its Articles of Organization, which will be filed with that state’s Secretary of State or an equivalent agency. Depending on the state, a new LLC’s Articles of Organization are usually required to include the LLC’s name and business address, the names and addresses of its initial member/owners, and the name and address of the LLC’s registered agent.
Even though it is not legally required by many states, having an operating agreement for your limited liability company is a smart move—and not having one can be dangerous. An operating agreement is a contract among the LLC’s members that stipulates requirements for membership, management, operation, and income or profit distribution. It documents the roles, responsibilities, rights, and relationships of the members, as well as their respective ownership percentages, shares of profits and losses, and what will happen to the LLC if someone leaves or if a new member wants to join. Not only does this increase your organization’s efficiency and effectiveness, it also helps prevent disagreements and misunderstandings about decision-making and financial dealings. It also gives your LLC credibility as a separate entity, especially when it comes to the legal system.
Documenting your LLC’s procedures in an operating agreement also allows the members to set the rules, instead of being forced to follow your state’s default rules, which might or might not be a good fit. In some areas, these state default rules will be the controlling factor in how your business runs unless your operating agreement specifies otherwise.
Some business owners wait to create an LLC because they don’t want to spend long hours researching obscure laws and bureaucratic requirements—much less have to continue to take time away from their business to stay in compliance as time goes on. However, you don’t have to forego the benefits of an LLC because of an otherwise healthy distaste for paperwork.
Create your LLC with IncFile.com – we give you confidence and peace of mind by eliminating the guesswork and prohibitive legal expenses that go with creating an LLC on your own. For less than what one hour of an attorney’s time will normally cost you, IncFile.com provides you a one-stop solution that lets you get on with the business of running your business.
Instead of spending the time and energy to do it all on your own, IncFile.com handles all the ins and outs of your LLC’s creation to make sure it’s done correctly and completely. IncFile.com takes the guesswork and high expenses out of creating your LLC. Ready to launch the next phase of your success?
Start now by choosing your state on the navigation bar at the top of the page to get more detailed information—or click on the “order” button to get a quote for the state in which you will be filing. Don’t wait—get started today!
