What is an LLC and why choose an LLC business structure?
LLC stands for Limited Liability Company, a business structure that offers owners limited liability protection and pass-through taxation. LLCs are separate legal entities from their owners, so owners are usually not personally responsible for the LLC's debts and liabilities. LLCs are taxed on a pass-through basis, meaning all profits and losses are reported on the owners' personal tax returns.
LLCs are created by state statute, and regulations may vary by state. For example, some states may impose additional fees for running an LLC, or restrict certain professions from working through an LLC. LLCs may also be more expensive to start and maintain than other business structures, such as a sole proprietorship or general partnership. However, LLCs can be a good choice for small business owners because they can protect personal assets.
The IRS treats LLCs differently for tax purposes depending on the number of members and other elections made by the LLC. For example, a domestic LLC with at least two members is usually treated as a partnership for federal income tax purposes, unless it files Form 8832 to elect to be treated as a corporation. LLCs with only one member are usually treated as disregarded entities, separate from their owners, unless they also file Form 8832 to elect to be treated as a corporation.
LLCs are created by state statute, and regulations may vary by state. For example, some states may impose additional fees for running an LLC, or restrict certain professions from working through an LLC. LLCs may also be more expensive to start and maintain than other business structures, such as a sole proprietorship or general partnership. However, LLCs can be a good choice for small business owners because they can protect personal assets.
The IRS treats LLCs differently for tax purposes depending on the number of members and other elections made by the LLC. For example, a domestic LLC with at least two members is usually treated as a partnership for federal income tax purposes, unless it files Form 8832 to elect to be treated as a corporation. LLCs with only one member are usually treated as disregarded entities, separate from their owners, unless they also file Form 8832 to elect to be treated as a corporation.
How many owners can an LLC have?
When you establish an LLC, you and all other owners are considered members. There is no maximum or minimum limit for the number of owners; you can create a single-member LLC as the sole owner or have several dozen members if you wish.
Can I name my LLC anything I want?
You will need to include "LLC" or 'Limited Liability Company" in the name of your business. For example, you can place it at the end like this: John Smith Graphic Design, LLC.
How much does the Secretary of State charge to file an LLC in Texas?
Certificate of formation for a Texas entity (except nonprofit corporation, cooperative association, PA or LP) is currently $300.00.
How long does it take to get my LLC formed?
If you are able to provide all the necessary information, your LLC can be ready to go within 72 hours after submitting Certificate of Formation to the Texas Secretary of State.
What do I need to open a business checking account for my LLC?
To open a bank account for a limited liability company (LLC), you'll need to provide the bank with the following documents:
- Employer Identification Number (EIN): This federal tax identification number is assigned by the IRS and works like a social security number for a business. LLC members can provide the bank with a copy of either the EIN Confirmation Letter (575 CP) or an EIN Verification Letter (147C) from the IRS.
-Articles of Organization: This is the initial formation document for the LLC. You can request a certified copy from the Secretary of State if needed.
-Identification: You'll generally need to provide two forms of identification
- Employer Identification Number (EIN): This federal tax identification number is assigned by the IRS and works like a social security number for a business. LLC members can provide the bank with a copy of either the EIN Confirmation Letter (575 CP) or an EIN Verification Letter (147C) from the IRS.
-Articles of Organization: This is the initial formation document for the LLC. You can request a certified copy from the Secretary of State if needed.
-Identification: You'll generally need to provide two forms of identification
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Our Disclaimer was posted on June 4, 2024.
The provided agreements on this website are for informational purposes only and do not constitute legal advice.
Simple LLC is not a law firm or affiliated with any legal services or attorney and the information contained here should not be seen as legal advice. All information (including agreements, forms, and documents) available on our site, https://simplellcforms.com, are provided without any warranty, expressed or implied, including their legal effect and completeness. The information should be used only as a guide and modified to meet your own individual needs and the laws of your state. Your use of any information or forms is at your own risk. Simple LLC and any of its employees, and contractors, who participated in providing any information expressly disclaim any warranty: they are not creating or entering into any privileged type relationship by providing information to you.
Communications between you and Simple LLC is only protected by our Privacy Policy. Simple LLC is not a law firm and is not providing legal advice. No employee, contractor, or consultant at Simple LLC is authorized to provide any advice about what information (including agreements, forms and documents) to use or incorporate them. We recommend you consult with a licensed attorney before implementing any legal document into your business.
Our Disclaimer was posted on June 4, 2024.
The provided agreements on this website are for informational purposes only and do not constitute legal advice.
Simple LLC is not a law firm or affiliated with any legal services or attorney and the information contained here should not be seen as legal advice. All information (including agreements, forms, and documents) available on our site, https://simplellcforms.com, are provided without any warranty, expressed or implied, including their legal effect and completeness. The information should be used only as a guide and modified to meet your own individual needs and the laws of your state. Your use of any information or forms is at your own risk. Simple LLC and any of its employees, and contractors, who participated in providing any information expressly disclaim any warranty: they are not creating or entering into any privileged type relationship by providing information to you.
Communications between you and Simple LLC is only protected by our Privacy Policy. Simple LLC is not a law firm and is not providing legal advice. No employee, contractor, or consultant at Simple LLC is authorized to provide any advice about what information (including agreements, forms and documents) to use or incorporate them. We recommend you consult with a licensed attorney before implementing any legal document into your business.
© 2024 by SIMPLE TEXAS LLC. All Rights Reserved.
© 2024 by SIMPLE TEXAS LLC. All Rights Reserved.