Register an LLC: Benefits
A Limited Liability Company (LLC) is a popular business structure for small businesses. An LLC is formed in accordance with state law and has the benefit of providing personal protection for the owners of the company. Limited Liability Companies can also provide for “pass through” tax treatment, avoiding a double level of taxation found within C corporations. Unless a voluntary contrary election is made, only the owners of the LLC are taxed, and there is no tax at the company level.
One benefit of having a Limited Liability Company is the LLC retains important tax benefits of the sole proprietorship, such as: owner compensation in the form of distributions of profit, which are taxed at the individual owner’s tax bracket
Another purpose of an LLC is to provide liability protection for the members and managers. Unlike some other business structures, like a sole proprietorship, in a properly structured and managed LLC, owners should have limited liability for business debts and obligations.
The exact rules for setting up an LLC vary by state, although the general requirements are quite similar. You don’t have to hire an attorney to form an LLC. Blue Diamond Documents filed thousands of Limited Liability Companies in all 50 states.
1. Decide what state in which you would like to file. We can help you determine what works best for you and your new business.
2. Choose a unique name for your Limited Liability Company. We will verify if the name is available in the state where you are filing.
3. File the articles of organization with the state. We include expedited services wherever available for no additional charge.
4. Upon approval of your LLC, we create an operating agreement for your new company.
5. We obtain a tax ID number from the Internal Revenue Service for your new LLC.
6. We email your approved articles of organization, operating agreement and tax ID number to you for your records.
You are now ready to open your LLC checking account and start conducting business!