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.

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

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Our Disclaimer was posted on June 4, 2024.

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