Steps for Forming an LLC
- Get a business name and address.
- Get the formation document.
- Get a registered agent.
- File the document.
LLC Key Considerations
- An LLC protects assets with limited liability.
- Most owners choose LLC for asset protection.
- Non-U.S. individuals provide LLC information for an EIN.
- Craft an operating agreement.
Financial Implications of LLC Ownership
- LLC loss or gain is determined per member.
- Track investment basis yearly per K-1.
- Compare distribution to basis for capital gain or loss.
Forming an LLC
A unique business name and address in your state gives flexibility in taxation and ownership transfer. However, forming an LLC can be time-consuming and expensive. To form an LLC affordably, use online services to pay only mandatory state fees.
The main LLC cost is the filing fee, usually ranging from forty to five hundred dollars depending on the state. Some services falsely claim to offer free registration.
Can an LLC member be a W2 employee?