LLC Means Limited Liability Company, and its designations or symbols vary according to the country, but the most comprehensive name and symbol is mentioned in this article, and this is the topic of our article specifically talking about this type of company in the United States of America
The Limited Liability Company, is a legal business structure that protects your personal assets (your home, car and personal bank accounts) in the event that your company is sued, that is, it is considered a separate property that no one has the right to count within the property of the LLC that you are the owner or member (partner of) .
An LLC is often used to run a business (you can have multiple businesses “enterprises” in one LLC), LLCs can also be used to take ownership of assets such as owning a property, a car, or any other type of asset and be the partners They have equal shares in these assets if there is more than one owner (partner) for the company.
For example, an LLC can be set up to own real estate, vehicles, boats, and planes and not to conduct business.
The owners of a limited liability company are calledMembers“
The LLC can be owned by one person (called a Single-Member LLC).
Or it can be a limited liability company owned by two or more people (called a Multi-Member LLC).
An LLC is created through an Article of Organization form in your state, or similar government agency, and a one-time registration fee. Which ranges from 50 to 500 dollars depending on the state in which you will establish your LLC
Why do entrepreneurs choose the LLC?
The main reason for choosing the type of LLC is to protect personal assets from business risks, especially emerging ones. By setting up an LLC, you are creating a "protective wall" between your business and your personal assets. Your personal assets include everything you own: your home, cars, trucks, bank accounts, investment properties, boats, jewelry, etc.
If the LLC is sued, creditors can only attack the LLC's assets to settle business debts and liabilities. Your personal assets remain safe and secure and are not considered part of the business.
Again, without incorporating an LLC, your personal assets are at risk if your business is sued.
Which is better: the limited liability company or the joint stock company?
A lot of people ask us if they should establish A limited liability company or create Shareholding company? Let's discuss the main differences.
- LLCs do not have to elect a board of directors; Joint stock companies must.
- LLCs do not need to hold board meetings; Joint stock companies must.
- LLCs do not have to keep records of all of their meetings; Joint stock companies must.
- LLCs are not subject to double taxation (company income tax and shareholder income tax); Joint stock companies are subject to both.
- LLCs can distribute profits however they like; Joint stock companies cannot do that.
- In short, LLCs are the most popular and most flexible business structure for business owners, entrepreneurs, real estate investors and business entrepreneurs with simple beginnings.
The cost of establishing a limited liability company is the lowest
You will pay a one-time registration fee to form an LLC.
Setup fees are cheap compared to setting up other types of business entities (eg joint stock company).
And even if your state has higher filing fees, it's worth making sure you know your assets are fully protected.
Once you set up your LLC, there are only two requirements to keep it active.
- The first requirement is that the LLC's annual financial report be sent to the US Tax Department IR
- The second requirement is to submit the annual renewal request for the Article of Organization on the state's website.
Other than that, the only extra "work" you have to do is submit a simple form if you change your address.
Easy to maintain LLC
How to set up a limited liability company
1. Choose a name for your LLC.
2. Prepare the Article of Organization certificate. File the file by mail or online with your state office and pay the state registration fee.
3. Wait a few business days for your LLC to be approved.
This is how you form an LLC. Yes, there are a few more steps, such as an operating agreement, a Federal Tax Identification Number (FTA)EIN), and the annual report, but these are the basic steps for starting your own LLC.
If you're ready to get started, select the state in which you're forming your LLC and start applying Application to establish a company in America From your home, from which country you are in, as long as it is not subject to US sanctions.