A limited liability company or “LLC” can apply for a tax identification number, open a bank account and do business, all under its own name. The advantages of an LLC is that its owners who are called members, have “limited liability,” that is, they are not personally liable for the debts and liabilities of the LLC. If in any case the LLC is forced into bankruptcy, the members will not be required to pay the LLC’s debts with their own money. Any kind of debts will be cleared by the assets of the LLC and if the assets is not enough to clear, the debtors cannot go after the members of the LLC. Their debts are with the LLC and not with the members themselves.
The LLC is not required to follow rigid rules of other corporations because they enjoy flexibility when it comes to taxes, and have more options to create a workable tax plan for their company. If you are planning on starting a small business in America and would like to know how to start an LLC, it is advisable to seek help from the professional experts e.g. Govdocfiling.com or other similar services.
The benefits of forming an LLC:
- Owners’ personal assets will be secured through Liability protection
- Certain expenses are deducted
- Audit risk is reduced
Forming an LLC may take a long time and can be troublesome for a new business owner. In order to save you the time and hassle involve in the process, there are now professional services available to help you with the process of LLC online filing at an affordable fee. Your time is precious especially in looking into the formation of a new company. These business filing experts will take you through the LLC formation process step-by-step with an online questionnaire. After which you will be contacted by one of their experts to confirm and track your order, and you get to speak with a real person.
If you have difficulty in deciding which entity type is right for your small business, you can take one of their informative survey to help you decide. The next step is choosing a unique name for your company because you cannot use a similar name as another registered company. You will also need to apply for an EIN number with the IRS with relevant details e.g. your company’s address, details of the owners of the company, and etc.