Unlike sole proprietorships and partnerships, LLCs(Limited Liability Company Requirements) allow their owners to separate and protect their personal assets from business debts and liabilities. A sole proprietor or general partner remains personally liable for business obligations, leaving their home, car, and personal savings at risk.
In contrast, forming an LLC creates a business structure separate from its owners. In a properly formed and managed LLC(Limited Liability Company Requirements) , only business assets remain at risk in a judgment against the company. Owners can protect their personal savings and possessions from business debts.

Like a sole proprietorship or partnership, an LLC enjoys pass-through taxation. This means that owners (also known as “members”) report their share of profits or losses in the company on their individual tax returns. The Internal Revenue Service (IRS) does not assess taxes on the company itself. This avoids the “double taxation” that general, or “C,” corporations experience. In a C corporation, the IRS taxes profits at the corporate level and dividends at the shareholder level.

Advantages of an LLC

Limited Liability. Members are protected from personal liability for business decisions or actions of the LLC(Limited Liability Company). This means that if the LLC(Limited Liability Company) incurs debt or is sued, members’ personal assets are usually exempt. This is similar to the liability protections afforded to shareholders of a corporation. Keep in mind that limited liability means “limited” liability – members are not necessarily shielded from wrongful acts, including those of their employees.

Less Recordkeeping. An LLC’s operational ease is one of its greatest advantages. Compared to an S-Corporation, there is less registration paperwork and there are smaller start-up costs.

Sharing of Profits. There are fewer restrictions on profit sharing within an LLC(Limited Liability Company), as members distribute profits as they see fit. Members might contribute different proportions of capital and sweat equity. Consequently, it’s up to the members themselves to decide who has earned what percentage of the profits or losses.
Disadvantages of an LLC(Limited Liability Company)

Limited Life. In many states, when a member leaves an LLC(Limited Liability Company), the business is dissolved and the members must fulfill all remaining legal and business obligations to close the business. The remaining members can decide if they want to start a new LLC(Limited Liability Company) or part ways. However, you can include provisions in your operating agreement to prolong the life of the LLC(Limited Liability Company) if a member decides to leave the business.

Self-Employment Taxes. Members of an LLC(Limited Liability Company) are considered self-employed and must pay the self-employment tax contributions towards Medicare and Social Security. The entire net income of the LLC(Limited Liability Company) is subject to this tax.

Yes, you can! We are happy to receive your legal documents and forward them to the person you designate as your legal contact. By creating your LLC(Limited Liability Company) online and using us as your registered agent, you are provided peace of mind. The registered agent services is $99/year.

Nearly all states require LLCs(Limited Liability Company) to file annual reports or pay franchise taxes to maintain the company’s good standing. The Secretary of State may forward a renewal notice directly to your company or to your Registered Agent. Failure to file reports and pay franchise taxes by the state deadline can result in fines, notices, and the inability to conduct business.

State laws do not require LLCs(Limited Liability Company) to hold annual meetings or record meeting minutes. However, we recommend that LLCs(Limited Liability Company) update their records at least annually to reflect any changes in management or activities.

Almost all state, county, and local governments require LLCs(Limited Liability Company) to complete business license, permit, and tax registration applications before beginning to operate. Learn more about how our Business License Compliance Package can help your company.

The first number is for standard processing, the second is for expedited. Most starts charge an extra fee for expedited processing.

Alabama 3-4 weeks 5-8 business days
Alaska 4-5 business days 2-3 business days
Arizona 4-5 weeks 8-9 business days
Arkansas 2-3 weeks 5-7 business days
California 13-17 business days 7-9 business days
Colorado 5-6 business days 2-3 business days
Connecticut 2-3 weeks 6-8 business days
Delaware 3-4 weeks 2-3 business days
District of Columbia 3-4 weeks 5-7 business days
Florida 4-6 business days 1-2 business days
Georgia 5-7 business days 1-2 business days
Hawaii 2-3 weeks 2-3 business days
Idaho 2-3 weeks 6-8 business days
Illinois 3-4 weeks 2-3 business days
Indiana 7-8 business days 2-3 business days
Iowa 3-4 weeks 9-11 business days
Kansas 7-8 business days 2-3 business days
Kentucky 2-3 weeks 6-8 business days
Louisiana 2-3 weeks 8-10 business days
Maine 2-3 weeks 6-8 business days
Maryland 5-7 weeks 8-10 business days
Massachusetts 6-8 business days 2-3 business days
Michigan 5-7 business days 2-3 business days
Minnesota 2-3 weeks 4-5 business days
Mississippi 2-3 weeks 6-8 business days
Missouri 6-7 business days 2-3 business days
Montana 3-4 weeks 8-10 business days
Nebraska 2-3 weeks 6-9 business days
Nevada 3-4 weeks 6-8 business days
New Hampshire 3-4 weeks 8-10 business days
New Jersey 6-8 business days 2-3 business days
New Mexico 4-5 weeks 2-3 weeks
New York 4-5 weeks 6-8 business days
North Carolina 2-3 weeks 6-8 business days
North Dakota 2-3 weeks 6-8 business days
Ohio 2-3 weeks 6-8 business days
Oklahoma 3-4 weeks 8-10 business days
Oregon 2-3 weeks 4-5 business days
Pennsylvania 3-4 weeks 8-10 business days
Rhode Island 2-3 weeks 6-8 business days
South Carolina 3-4 weeks 8-10 business days
South Dakota 2-3 weeks 5-8 business days
Tennessee 2-3 weeks 5-8 business days
Texas 4-5 business days 2-3 business days
Utah 3-4 weeks 8-10 business days
Vermont 2-3 weeks 5-8 business days
Virginia 3-4 weeks 5-8 business days
Washington 2-3 weeks 3-5 business days
West Virginia 3-4 weeks 6-8 business days
Wisconsin 7-9 business days 2-3 business days
Wyoming 3-4 weeks 8-10 business days

Alabama – $105
Alaska – $260
Arizona – $50
Arkansas – $45
California – $85
Colorado – $50
Connecticut – $125
Delaware – $95
District of Columbia – $225
Florida – $135
Georgia – $100
Hawaii – $50
Idaho – $105
Illinois – $650
Indiana – $95
Iowa – $50
Kansas – $165
Kentucky – $40
Louisiana – $105
Maine – $180
Maryland – $105
Massachussets – $530
Michigan – $50
Minnesota – $140
Missouri – $50
Mississippi – $50
Montana – $70
Nebraska – $105
Nevada – $75
New Hampshire – $105
New Jersey – $130
New Mexico – $50
New York – $215
North Carolina – $130
North Dakota – $140
Ohio – $130
Oklahoma – $105
Oregon – $105
Pennsylvania – $130
Rhode Island – $155
South Carolina – $115
South Dakota – $155
Texas – $310
Tennessee – $315 + $50/additional member. ($365 for 2, $415 for 3 etc.)
Utah – $70
Vermont – $105
Virginia – $105
Washington – $210
West Virginia – $105
Wisconsin – $135
Wyoming – $105

Most states require LLCs to file annual reports/statement of information and pay franchise taxes to maintain their good standing. Failure to file annual reports and pay franchise taxes can result in fines, notices, and the inability to conduct business. Some states have additional publication requirements (NY, FL, and certain counties) for LLCs, Corporations, and DBAs. It is your responsibility to maintain the business after incorporating to stay compliant with local, state, and federal law.

Similar to an individual’s Social Security Number, a federal Employer Identification Number (EIN) identifies a business for tax purposes. Also called a Federal Tax ID, the EIN is issued by the Internal Revenue Service (IRS).

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The IRS requires corporations, Limited Liability Companies (LLCs) operating as partnerships, and all employers to obtain an EIN. This number is used for all tax filings the business makes. Banks, lenders, and business partners may also request your EIN.

An EIN and a Federal Tax Identification Number are the same, just different terminology for the same number.

The IRS usually requires corporations and Limited Liability Companies (LLCs) operating as partnerships to obtain an EIN. Any business that hires employees, including sole proprietorships and single-member LLCs, must also apply for an EIN.

Banks may require an EIN in order to open a business checking account. Also, you may need to list your EIN on business license, permit, and tax registration applications.

We can obtain an EIN for you for just $89. You can order it together when you incorporate through our website (click get started now). You can also order the EIN separately here.

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