Starting an LLC
In order to open your own business with the organizational and legal form of a limited liability company, you must register it with the tax office by filling out the appropriate application.
Cost and Process
How much it costs to start an LLC depends on the state your LLC is formed in. The average cost to form an LLC in the US is $132.
Steps to Register an LLC
- Choose a business name
- Select registered agent
- File formation documents
- Create operating agreement
- Get EIN
- Set up licenses and permits
How to Make Money with an LLC
To make money with an LLC:
- Define business goals and target market
- Formally register the LLC
- Arrange financing and accounting
- Market services and products
- Provide quality and value
How an LLC Works
An LLC protects owners from personal liability for company debts. LLCs don’t pay taxes directly; profits/losses are reported on owners’ tax returns. LLCs must file tax returns unless no income/expenses.
Taxation and Advantages/Disadvantages
LLC advantages include liability protection and tax flexibility. Disadvantages are complex taxes and paperwork.
Downsides of an LLC
LLC disadvantages include complexity of taxes and paperwork. However, the liability protection and tax flexibility benefit small businesses.