State laws require that a location that is open and staffed during business hours be designated in the state of incorporation to receive and forward official documents from the state of service of process and other legal notifications. Also a registered agent will forward franchise tax reports to your corporation.

Can we appoint our own registered agent?

    Yes. Incorporate USA / BIZINCUSA, Inc. will appoint, who the applicant is as the registered agent for the corporation you wish to form. Incorporate USA currently does not charge for registered agents fees if the client is the registered agent. In order to be appointed as your own registered agent and avoid potential charges you must sign off an acceptance letter as the registered agent and must have an address of record in the state you wish to incorporate in.  

    If you are planning on incorporating in a state other than the state you plan on holding a physical office, the registered agents fee is $135.00 per year. This is most common for Delaware and Nevada corporations. However, if you have an individual that resides in the state you are planning to incorporate in and they agree to act as your resident / registered agent, you can then avoid the fee. Of course, this person or entity will have to sign the resident / registered agent acceptance.

What paperwork is required to form an LLC?

Articles of organization must be prepared and filed with the state and filing fees, initial franchise taxes, and other initial fees must be paid.

If your LLC is formed through Business Filings Incorporated, all you need to do is complete our simple order form. We will prepare and file your articles of organization and pay the initial filing fees.

Do I need an attorney to form an LLC?

No, an attorney is not a legal requirement. You can prepare and file the articles of organization yourself; however, you should understand the requirements of your intended state of formation.

You can use our service to form your LLC and save money on attorney's fees. However, if you are unsure of what entity type would be most beneficial to your business, consult an attorney or accountant.

What should I name my LLC?

Choose the name of your LLC carefully. It is very important that your name portray the image you want for your new company. Legally, the name you select must not be "deceptively similar" to any existing company or must be "distinguishable on the record" of your state.

For example, if an LLC named Flower LLC exists in your state, you probably would not be allowed to name your business Flour Limited Liability Company. It is possible that the name you select will not be available; therefore, we ask for a second choice on the LLC order form.

Additionally, most states require that the name you select show your business is a limited liability company, by including the words "Limited Liability Company," or the abbreviation LLC.

How many people are needed to form an LLC?

The IRS does allow one member LLCs to qualify for pass-through tax treatment; however, taxation of one person LLCs at the state level may be different.

How is an LLC taxed?

A state-registered LLC can be taxed for federal income tax purposes as a partnership. Under the check-the-box rules, an LLC can elect partnership status to avoid taxation at the entity level as an "association taxed as a corporation." If an LLC is not taxed as a partnership, it will be taxed at the entity level similar to a standard or C corporation.

The state income tax treatment of LLC profits and losses may or may not mirror the IRS tax treatment depending on the state. For specific information on your state rules visit your state's web site. 

Please note that California LLCs are subject to an annual minimum franchise tax of $800 per year. The first payment must be made within 3 months of forming your LLC. The state of California does send a bill to help you to remember to make this payment.

What is the organizational structure of an LLC?

An LLC is owned by its members. They are analogous to partners in a partnership or shareholders in a corporation, depending on how the LLC is managed. A member will more closely resemble shareholders if the LLC utilizes a manager or managers, because then the members will not participate in management. If the LLC does not utilize managers, then the members will closely resemble partners because they will have a direct say in the decision making of the company.

A member's ownership of an LLC is represented by their "interests," just as partners have "interest" in a partnership and shareholders have stock in a corporation.

How is an LLC managed?

An LLC may be managed by its members (owners) or by selected managers.

If the LLC is to be managed by its members, it operates much like a partnership. Each member has an equal say in the decision making process of the company.

If the members choose, they may elect a manager or managers to act in a capacity similar to a corporation's board of directors. These managers are in charge of the affairs of the corporation.

Member management is the normal default rule of state law. This means that if managers are not selected in the articles of organization, the members will direct the affairs of the LLC.

What are the advantages of an LLC?

LLCs offer numerous advantages.

• Pass-Through Taxation
  LLCs allow for pass-through taxation. This means that earnings of an LLC are taxed only once. The earnings of an LLC are treated like the earnings from a partnership, sole proprietorships and most S corporations.
• Limited Liability
  The LLC owner's liability is generally limited to the amount of money which the person has invested in the LLC. Thus, LLC members are offered the same limited liability protection as a corporation's shareholders.
• Flexible Management Structure and Flexible Ownership is Permitted
  Like general partnerships, LLCs are generally free to establish any organizational structure agreed on by the members. Thus, profit interests may be separated from voting interests.

What are the disadvantages of an LLC?

The disadvantages of an LLC include:

• More Paperwork Than an Ordinary Partnership
  Documents must be filed at the state level to create an LLC, which is not the case with a general partnership.
• Dissolution Date
  Some states require that a dissolution date be listed in the articles of organization. This date may be amended. Further, certain events, such as death of a member, a member leaving, bankruptcy, etc. can be a dissolution event. A corporation has unlimited life and these events are not dissolution events for a corporation.
• Newer Entity Type
  The LLC is a newer entity, and people are not as familiar with the LLC as a corporation.

Should I choose an LLC or an S corporation?

While the S corporation's special tax status eliminates double taxation, it lacks the flexibility of an LLC in allocating income to the owners.

An LLC may offer several classes of membership interests while an S corporation may only have one class of stock.

Any number of individuals or entities may own interests in an LLC. However, ownership interest in an S corporation is limited to no more than 75 shareholders. Also, S corporations cannot be owned by C corporations, other S corporations, many trusts, LLCs, partnerships, or nonresident aliens. Also, LLCs are allowed to have subsidiaries without restriction.

To learn more about the similarities and differences of S corporations and LLCs, click here. 

What is a publication requirement?

A few states require notice to be published in a newspaper that a corporation or LLC has been formed. States with this requirement include: Pennsylvania (corps only), Georgia (corps only), Arizona (corps and LLCs), Nebraska (corps and LLCs), and New York (LLCs only). The service performed by Business Filings includes the publication requirement for each of the above states except for New York LLCs.

In New York, all LLCs formed or foreign qualified there are required to publish a notice of formation for six consecutive weeks in assigned newspapers. The publication is made at the county level in two newspapers as assigned by the local county recorder. The cost of this requirement varies greatly based upon the county where the business is located. In New York County, the publication costs will be higher than in the rest of the state.

To comply with this requirement, please contact your local county recorder’s office and they will assign the newspapers. The county recorder’s phone number is located in the blue pages of your local phone book.

How do I get started setting up an LLC?

After you decide to form an LLC, articles of organization must be filed with that state and initial fees must be paid. If you choose BizIncUSA , an Incorporate USA, Inc. Company,  to form your LLC, we will complete these administrative tasks professionally, efficient, and with care in order to assure your Limited Liability Company is filed in compliance with the state requirement of your choice.

After your articles of organization are filed, your LLC should have an organizational meeting where an operating agreement is adopted, interest certificates are distributed, and other preliminary matters are completed.

Our Deluxe Limited Liability Company Kit  includes all of the information and paperwork to make this process easier. Click below to start your order!

Must an LLC  corporate name have a suffix?

    Yes. The corporate name you choose must include a suffix, either spelled out or abbrieviated, examples are Incorporated (INC), Corporation (CORP), Professional Association (PA)(P.C. in some states), or Limited Liability Company (LLC). When completing the incorporation request, please indicate your choice.

How soon will I have a Tax ID number or Federal ID Number for the corporation?

    For most corporations, in most states, Incorporate USA will have a Tax ID (FEIN) within 24-48 hours. In some cases, the internal revenue service will only handle request via FAX, if this is the case with your IRS servicing center, we will have your tax id number withing 5-7 working day. The fee for tax ID Serivce is currently $55.00.