In deciding where to form a company our clients consider many factors, such as where their company intends to conduct business. In addition, they often evaluate the cost of forming the company in the state, the tax laws and business laws of the state, and whether it will be necessary for the company to qualify to conduct business in one or more states.

Most small business owners tend to form an LLC in the state where their company conducts (or intends to conduct) the majority of its business. That determination often makes sense in cases where the company is expected to conduct its operations primarily or exclusively in one state.

LLC.com offers LLC formation packages for as little as $79 plus applicable state fees. We have multiple packages to choose from to meet your individual budget and needs. The total price of an LLC formation depends upon the state chosen, as fees vary among all 50 states.

If you will be doing business in more than one state, additional costs are involved because the LLC will need to register, or "qualify" to do business in other states (outside the location where the LLC was formed). Get a quote today or contact an LLC Business Specialist at 877-261-9606 (toll-free) or 302-636-5457 with any questions. The process to form an LLC takes less than 10 minutes. We have formed over 300,000 businesses nationwide. Let our experts assist you today!

For most customers, the LLC is an attractive option because it combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. Limited liability means that owners are only liable to the extent of their investment in a properly structured and managed LLC. Their personal assets should be protected from a judgment or other action against the business.

Compliance - a crucial part of asset protection - is the process by which an LLC remains in good standing by satisfying all federal, state, and local requirements. In a properly structured and managed LLC that is compliant with all regulations, owners are only liable to the extent of their investment in the company. Their personal assets should be protected from a judgment or other action against the business.

The "corporate veil" refers to the separate legal existence of a corporation (or an LLC) that usually insulates the owners of the entity/company from liability for the company's actions or obligations. Maintaining the "veil" will help to shield the company's owners from personal liability for claims or lawsuits against the company. "Piercing the corporate veil," or "piercing the veil," means that this liability protection is disregarded, and the personal assets of owners are at risk in a judgment against the business.

If a Limited Liability Company (LLC) fails to meet its annual state requirements like filing an annual report, paying franchise taxes, or maintaining a Registered Agent, the Secretary of State may administratively dissolve the company. Depending upon the state, this status may go by other names like void, involuntarily dissolved, or forfeited. When evaluating whether a corporate veil should be pierced, courts may also consider factors like whether LLC owners have properly maintained business records and refrained from co-mingling business and personal assets.

Compliance assistance is a major area of focus for LLC.com. We provide each LLC client with an easy-to-follow checklist of steps to take to help meet state compliance requirements. Our exclusive $50,000 Guarantee will reimburse up to $50,000 in legal defense fees if clients follow our checklist, complete the items on time and their corporate veil is still pierced resulting in a personal liability claim. We're that committed to compliance assistance and that certain our guidance is appropriate.

Pass-through taxation means that each member reports their share of profit or loss in the company on their individual tax returns, and the Internal Revenue Service does not tax the LLC itself. This avoids the "double taxation" of general corporations, where profit is taxed once at the corporate level and dividends are taxed again at the shareholder level.

Unless they elect otherwise, the single member of an LLC reports their share of profit and loss in the company on Schedule C of their personal tax return (usually Form 1040).

Unless members elect otherwise, a co-owned LLC is considered a partnership. Though the LLC itself does not pay taxes to the Internal Revenue Service, it files Form 1065 (U.S. Partnership Return of Income) and issues each member a Schedule K-1 reporting their share of profit and loss. Members file their personal tax returns (usually Form 1040) and report their LLC distributions on Schedule E.

A Series LLC is a Limited Liability Company with more than one series of members, managers, or LLC interests having separate rights, powers, or duties with respect to specified property or obligations of the LLC or profits and losses associated with specified property or obligations. Any such series may have a separate business purpose or investment objective.

LLC.com can assist in the formation of a series LLC in Delaware, Illinois, Iowa, Nevada, Oklahoma, Tennessee, and Utah. We do not draft or provide sample-operating agreements for a series LLC. Simply call 877-261-9606 or 302-636-5457 to get started today.

Fees and turnaround time will generally be the same as for a non-series LLC in the state you select. Call an LLC Business Specialist at 877-261-9606 or 302-636-5457 for specific details about forming a Series LLC in your state.

Individual series typically do not need to be listed on the formation document for a Series LLC, though they should appear in the operating agreement. If series are listed on the formation document, amendments would need to be filed to reflect any changes to the series.

In certain scenarios, this election may allow LLC members to save on taxes. With corporate taxation, the first $75,000.00 in income is taxed at corporate tax rates, which are generally lower than the individual tax rates assessed on LLC members. For specific guidance, LLC members should consult their accountant or tax advisor.

There is no limit to the number of members who may own an LLC. Subchapter S corporations are limited to a total of 100 shareholders. Also, members of an LLC do not need to be U.S. citizens or residents like with a Subchapter S corporation. Additionally, all shareholders in a Subchapter S corporation must be individuals so another entity may not own a Subchapter S corporation.

An LLC does not need to distribute income in proportion to ownership. The shareholders of a Subchapter S corporation must receive dividends according to the number of shares they own. LLC members may split profit and loss in any way they choose as long as they follow IRS guidelines for special allocations.

By forming a Limited Liability Company (LLC), business owners can separate and protect their personal assets from the debts and obligations of their business. Business owners in the arts and entertainment industry often inquire about this service because they are seeking to protect personal property like their house, car, or savings account.

An LLC may be beneficial to business owners in the arts and entertainment industry who are seeking to raise investment funds. Customers who form an LLC often issue membership interests in the LLC to investors in exchange for money or property, and the investors become members of the LLC.

Many business owners form their LLC in the state where their company conducts, or intends to conduct, the majority of its business. That determination often makes sense in cases where the company is expected to conduct its operations primarily or exclusively in one state.

Generally, each state where a company operates may consider the connection or "nexus" that the company has to the state. In making such a determination, states typically consider factors such as the frequency and magnitude of services the company provides in a particular state or for clients in a particular state, or whether the company has a physical presence in a particular state, such as employees who conduct business activities or an office located in that state.

Many business owners form their LLC in the state where their company conducts -- or intends to conduct -- the majority of its business. It is also prudent to evaluate the cost of forming the company in the state, the tax laws and business laws of the state and whether it will be necessary for the company to qualify to conduct business in one or more other states.

We find that many of our consultant customers purchase and carry business insurance to provide liability and other protection for their business. Consultants often conclude that personal or homeowners insurance will not provide sufficient protection for even a small, home-based consulting business.

Our law firm customers look for ways to spend more time researching the law, rather than filing out incorporation paperwork. Small law firms often find it cost prohibitive to hire an additional employee and would prefer to outsource specific work to a trusted partner like LLC.com. We can help your practice grow while saving you time and money.

Among our customers who bid directly on federal, state or local government jobs, we find that some form an LLC prior to making a bid. Most federal or state jobs require a contractor to be bonded, and insurance companies providing such bonds may prefer to deal with companies rather than individuals. Some government jobs require pre-qualification before a bid may be submitted.

Workers' Compensation laws vary significantly by state, and whether a company is required to obtain Workers' Compensation insurance will depend upon statutory law where the work is being performed. Generally, if a company has one or more employees, it will be required to obtain and maintain Workers' Compensation insurance for its employees.

Generally, our customers in the construction industry obtain a business license from the state, city or township offices in the location where the work is taking place. More than one license is sometimes required. Customers who are electricians or plumbers or are engaged in another specialty trade often consult the regulatory body that oversees their specific trade for licensing requirements. Not all states have the same requirements for licensure, and the requirements vary from state to state.

No. Creating a corporation, forming a limited liability company or other business entity involves paperwork, but it does not necessarily require legal expertise or advice. You provide your clients with the information they need to make an informed decision about the formation of a business, for example, what type of entity to form based on their tax situation. The Company Corporation handles the paperwork, including filing the documents with the state.

We can secure an EIN number for your clients with a complete package selection or as an individual option for a $75 fee. We will prepare the forms, and send them back to you or your client. We require the business owner's signature on the forms before they can be processed.

A corporation having business locations in multiple states may form a corporation or LLC in a single state, then "qualify to do business" in other states. This means companies must formally register, file annual reports and pay annual fees to obtain authority to conduct business in those states; and benefit from the laws of the state. The Company Corporation can assist your client in qualifying a corporation or LLC as well as keeping track of corporate filing requirements in any state.

Although both an LLC and a corporation can help protect an investor from liability, we find that most investors choose an LLC to hold their investment real estate. An LLC can offer more freedom of the management, does not require corporate formalities like annual meetings, and enjoys pass-through taxation at the federal level.

To transfer a deed to an LLC, the deed is prepared in the LLC's name and filed and recorded in the appropriate office(s) located in the jurisdiction in which the property is located (usually the county's recorder of deeds office). Since LLC.com cannot assist in filing a deed, we recommend that property owners consult with a lawyer with regard to any transfer of property to ensure that it is done properly.

Whether the lender will agree to allow the LLC to replace the individual investor as the borrower on the loan and mortgage will depend on the particular circumstances presented. There may be costs and tax issues relating to such a real estate transfer and changes to existing loans and mortgages, so it is often prudent to obtain advice from a real estate attorney.

Under certain conditions, a company that engages in interstate commerce will need to apply for and obtain a United States Department of Transportation number and possibly a Motor Carrier (MC) number. The Federal Motor Carrier Safety Administration and Surface Transportation Board generally regulate carriers. Additional information can be obtained from www.fmcsa.dot.gov.

The law of the state where the vehicle is registered determines ownership and transfer of ownership of a vehicle. Customers should consult the applicable state motor vehicles department for details regarding transfer of ownership and registration of vehicles.