What is the point of forming an LLC?

What is the point of forming an LLC?

Forming an LLC The purpose of an LLC, or a limited liability company, is to shield the business owner from personal liability for the company’s debts. Most states allow residents, individuals who live outside the state or country, other LLCs, corporations, pension plans, and trusts to serve as LLC owners.

How much does it cost to set up an LLC?

The main cost of forming a limited liability company (LLC) is the state filing fee. This fee ranges between $40 and $500, depending on your state. There are two options for forming your LLC: You can hire a professional LLC formation service to set up your LLC (for an additional small fee).

Should my LLC be an S corp?

Although being taxed like an S corporation is probably chosen the least often by small business owners, it is an option. For some LLCs and their owners, this can actually provide a tax savings, particularly if the LLC operates an active trade or business and the payroll taxes on the owner or owners is high.

Where do I put the name of the LLC on the form?

There are three instances on the form where you are required to provide the name of the LLC. The name MUST be typed exactly the same in all three places. Enter the name of the LLC in the space in the title. Also enter the name in Article First and in the title of the document on the last page of the form.

Who is the agent for service of process for an LLC?

The LLC must designate the Secretary of State as its agent for service of process. Provide an address to which the Secretary of State may mail a copy of any process received. “Process” means the papers that acquire jurisdiction of the LLC in a legal action.

How do I get a certificate of organization for an LLC?

Articles of organization To form your LLC, you must submit to the state articles of organization, also called a certificate of organization (or certificate of formation in some states). You can generally download the appropriate form from the secretary of state website. When filing your form, make sure to include the correct number of copies.

What is an LLC and how does it work?

An LLC is a legal business entity formed by one or more owners, known as members. Unlike a sole proprietorship, an LLC has rights, responsibilities, debts, and assets separate from those of its owners.