Getting an LLC: Is it Worth it?
Thinking about getting an LLC? Our latest article will cover the benefits of choosing the LLC business structure for your company and share resources to start your LLC.
“If opportunity doesn’t knock, build a door.” – Milton Berle
Common LLC Questions Answered
- Why is getting an LLC better than a Corporation?
The Limited Liability Company isn’t the only business type, but it is extremely popular with entrepreneurs who want a legitimate business without all the regulations of a Corporation. Forming an LLC is a relatively quick process and you can start applying for business accounts and open your doors as soon as the paperwork is processed by your state. Because the LLC business structure combines the benefits of a corporation and partnership, members benefit from what is called pass-through taxation (each member is taxed once on personal tax returns) and protection from legal and financial liabilities. Flexibility, lower taxation, and liability protection are the main reasons why an LLC is the preferred business structure for many small businesses. - How do you start your own LLC?
If you are considering starting your own LLC, the process and requirements vary by state. Once you know the state where you’re going to run your business, you can use our step-by-step State Startup Guides to help you gather documents and information, and complete the application. - What do you do after forming an LLC?
Once your LLC is active with your state, some of the most important steps that follow are actually included in our LLC packages, but you can also finish the process on your own. Your LLC will need an Operating Agreement to dictate things like how the business will be run, when distributions will be made, how to add or change members, and how to dissolve the business if you decide to close your doors. If you’re going to hire employees, you’ll need a Federal Employer Identification Number, or FEIN, or EIN from the IRS. You’ll also need to set up business finances and record-keeping systems, apply for permits and licenses to operate, and insure your business. There will be ongoing requirements to maintain your LLC, such as filing annual reports and tax returns. Find out more about your state’s ongoing business requirements.
8 Benefits of an LLC
- Managing an LLC is much simpler and involves less paperwork than a traditional Corporate business structure
- LLC tax benefits include pass-through taxation, so you’re not double-taxed like a Corporation
- LLC profit sharing can be determined by the Operating Agreement, so there’s flexibility with when and how much must be paid out and taxed
- Limit personal liability from the LLC’s financial and legal obligations
- Certain states, like Wyoming, offer additional LLC privacy protection
- Only one member is required to form an LLC
- An LLC can be the owner of other LLCs, which is a way of further sheltering assets from legal liability
- LLCs are ideal for being what is called a Holdings Company for assets like intellectual property, real estate property, and stock portfolios
Is an LLC Right for You?
If you’re still not sure, we understand! Starting your own business is a big deal, and we want to help you form the company that best works for your business type. The Limited Liability Company structure isn’t right for everyone, but if it does work for your business, you’ll be happy to know it’s simple to start and manage. If you’re still undecided, we have plenty of helpful resources to guide you through the decision process. You can always send an email to our support team to ask your questions, but all the information to create your LLC is available online 24/7.
Summary
We’ve answered some common questions about why getting an LLC is preferred over the Corporation business structure, how to start an LLC on your own, and what to do after your company is formed.
Knowing the top 8 benefits of owning an LLC can help you understand why this business type is the most popular among small businesses. If you have decided the LLC is right for you, but would rather have someone else do the work for you, we can file your LLC with a few details about your new business.
Form Your LLC in any State with MyCompanyWorks
Select your state and one of three LLC formation packages, then enter your contact details and the name of your business. Fill in the member and manager details and apply for your FEIN at the same time if you’re going to hire employees. Check the box in your order form to appoint MyCompanyWorks as your Registered Agent and keep all your formation records in one place. Already in business? No problem! We can show you how to make your business an LLC.
Starting your own LLC is a snap with MyCompanyWorks online LLC services. Get the ball rolling with just a few clicks and a credit card. We’ll initiate your order by the next business day and you can follow the progress in your free My Account Dashboard. Find out why verified customers start LLCs with MyCompanyWorks.
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