Limited Liability Company or more frequently called as LLC was first recognized as a legally approved business body in Wyoming, sometime in the late 1970s. Ever since, it has been accepted in all the states and has gained great popularity as a successful business structure for all SMBs due to its liability protection. LLC gives new business owners the effortlessness of general partnership in the tax and formality departments and also provides personal protection against liabilities associated in a corporation and company debts. Without these protections, you could be personally held responsible for any mistakes made by your business.

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Flexibility is one of the major benefits of an LLC. You can choose whether you wish your business to be managed as a corporation (manager managed LLC) or a partnership company (member managed LLC) along with all its related formalities, board of directors, annual meetings, etc. or simply choose to skip through all of these completely. As a business owner, you are also allowed to choose how the IRS will tax your LLC, for instance – a sole proprietorship (one-member LLC), partnership (multi-member LLC) or lastly as a corporation.

You can enjoy some really good tax advantages if you file your LLC as an S-Corporation which allows business owners to divide their income according to their status as an employee and distribute in the form of a partner. This kind of an LLC tax structure helps in paying a lower self-employment tax, thus helping you save more money.

Starting up a business with the LLC system is extremely easy and can be converted into a corporation in the future, based on the direction your business takes. No wonder with the liability, flexibility, simplicity and the protection offered by an LLC, a large number of business owners choose this kind of structure while establishing a business.

Why do you need online LLC services to start your business?

Time is money! And in today’s online platform, an online service provider that offers you quick, cost-effective solutions for forming a business is an essentiality. These services along with industry experts provide all types of business filing services that you may need to establish and successfully run your business. The services include everything right from preparing and filing for corporations and LLCs, business licenses, creating legal documents, EIN, compliance, finding registered agent services etc. at the most affordable costs.

Using an online business development service provider will only help you establish your business quickly and smoothly without any complications. And to make sure that your business development process goes smoothly, you simply need to select any one of the top business formation service providers mentioned above. Once you have chosen your provider, decide whether you wish for your company to be an S-corporation, a C-corporation or an LLC and finally enter the state where you wish your business to be registered in.

With this done, you will be asked to enter the following details about your business, such as – business name, type of business package you wish to choose, etc.

Starting or uniting a business in today’s time is no longer a complicated, expensive or time-consuming task, especially if you have the help of experienced professionals to look after all the needs.

How to get your business registered – the fast and easy way?

Establishing your business can be very easy and quick, but only if you choose any of our recommended expert services.

– Choose one of the best business formation services from our above list.

– Fill-up all the details such as company name, address, etc.

– Pay the fee for initial filing service, also possibly the other services such as EIN, expedited filing service, operating agreement, etc. and the respected State LLC Fees.

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C-Corporation

C-Corporation is ideal for businesses that sell products and have a storefront or simply has a group of employees. Also, in the future if you wish to take your business out in the public, this business body or structure is perfect for you in order to have boundless number of shareholders. The tax implications are also another reason for you to choose this body. Companies need to pay a corporate income tax and offer dividends at an individual level to their shareholders. Owners need to pay personal income tax on the profits while the healthcare premiums of the employees can be simply written-off.

S-Corporation

If you have a small business then S-corporation is exactly what you need. Designed for smaller business bodies, S-corporation functions almost similar to that of an LLC by protecting all your personal resources, but also allowing you to pay your own salary from the company. It also allows the owners to pay their personal income tax for the profits they earn from the business income while passing the loss to the owners through tax returns. However, there cannot be more than a total of 100 shareholders for the company, thus keeping the business more inclined towards the smaller side. It also has a different management structure compared to C-corporation.

Note: Only US citizens or resident aliens can be their shareholders.

Taxes

In the above sections, we have already discussed about the tax advantages you enjoy when you choose any of the mentioned business forms. However, when deciding the corporate structure of your business, you must first and foremost consider taxes. For instance, an LLC entity can be taxed either as a corporation or as a partnership depending entirely on your income and the total business profits. For both the corporation structures, the earnings are taxed only at a corporate level. In reference to S-corporation entities, you may come across the term “pass-through entity” which means that the particular business is not taxed. Apart from this, there are deductions for payroll taxes, operating expenses, healthcare costs, and many more.

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Where to file?

You can file for your business in any state. All you need to consider is the additional state fees and the paperwork needed if you file your business outside the state where you perform your business. So, if you are a freelance writer with global clients, you will be taxed according to the place where you work from. If you a regular business traveller, you will need to choose a state where you have the most connections or you reside or where you pay your taxes or own a house or have your driver’s license. However, if your business is more widespread or complicated and has offices in 2 different states, you can pick choose one of them for the LLC and later use the second one as a foreign LLC.