Steps to Register an LLC:
- Choose a Business Name
- Select Registered Agent
- File Formation Documents
- Create Operating Agreement
- Get EIN
- Set up Business License and Permits
Starting an LLC:
- Define Business Goals and Target Market
- Formally Register Your LLC
- Arrange Financing and Accounting
- Market Services and Products
- Provide Consistent Quality and Value
Tax Treatment of One-Member LLCs:
The IRS treats one-member LLCs as sole proprietorships for taxes. The sole owner reports LLC profits/losses on their personal tax return.
Tax Obligations and LLCs:
What if no money is made? If net income is zero or less, LLC owners may not owe taxes but the IRS may still require a return.
Additional Information:
States charge an initial formation fee for an LLC.
LLCs aren’t required to have income or post profits, but if an owner claims tax deductions without reporting income, the IRS may audit to see if it’s a real business.
The IRS will only allow you to claim losses on your business for three out of five tax years.
When winding down an LLC, the simple structure allows smoothly distributing assets and settling obligations.