Form an LLC

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Form an LLC

Limited liability companies (LLCs) are a popular corporate structure in the United States, and for good reason. LLCs offer several benefits that can make your business run more smoothly. Whether it's because you want more flexibility or simplified tax laws, there's probably at least one reason why it would benefit your business.

What is an LLC?

A limited liability company (LLC) is a business structure in the U.S. that protects its owners from personal responsibility for their debts or liabilities. Limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship.

How can forming a Limited Liability Company help your business?

  • Easy to manage: Operating an LLC Doesn't need the owners to record resolutions, amendments, meeting minutes, or annual board meetings required by law with corporations. Most states will strip the asset and liability protection regularly provided to corporations if they do not fulfill these requirements. This gives businesses the freedom to contract, which means that owners only need to agree on how the company will operate, and the courts can uphold this agreement.
  • Tax advantages: LLCs legally separate a business from the owners, but they can also elect to receive the same treatment as a partnership for tax purposes. In this case, they wouldn't pay any taxes, and the income would be moved to the owners, similar to partnerships. The tax laws applying to partnerships are more flexible than corporations, which grants businesses a certain degree of freedom in how they choose to prepare for their taxes. As a result, business owners can find ways to maximize the number of tax breaks they qualify for while minimizing their tax burden. 
  • Ability to raise capital: When structured as LLCs, businesses can easily bring on new owners (called members) without a limit to the number of new members. These additional owners/investors can consist of individuals, corporations, pension plans, and trusts, which do not need to be within the U.S. One can form an LLC or corporation in a state where the owners do not reside. For example, one could create an LLC in the pro-business state of Nevada without ever having visited or been to the state.
  • Liability and asset protection: LLCs operate as legal entities that separate the business owners from the business itself. In modern society, suits are a common and everyday occurrence. This is why it is essential to protect yourself by creating a legal shield that separates you and your creditors. Business owners operating LLCs are not personally liable for any of the LLC's debts, even those associated with a contract or tort. To a large degree, the LLC operating agreement can include any rules and procedures the agreeing parties wish to implement. Once established, it can remain indefinitely without maintenance. The operating agreement's initial drafting is noteworthy because it must follow any IRS and state statutes so that the LLC can be taxed as a partnership, not a corporation.
  • Co-owner liability: LLC owners (members) are not typically held personally liable for other co-owners or employees' wrongdoings in all U.S. states. Corporations also protect this type of personal liability, while partnerships and sole proprietorships do not.
  • Suppose an LLC is held responsible for negligence or wrongful actions of an employee or another owner. In that case, it can have financial assets or property taken from it due to an unfavorable judgment against them. The innocent LLC members will not be held personally liable; however, the owner or employee who perpetrated the act can be held personally responsible for their actions.

1831 Marina Blvd, San Leandro, CA 94577, United States.

1831 Marina Blvd, San Leandro, CA 94577, United States.
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info@onebizservices

(541) 754-3010

San Leandro, CA

Why work with Onebiz Services?

  • Help prevent corporate identity theft: Our information system ties into most state databases to give you up-to-date information on the status of your entities, including the filing status, the current registered agent, officers, and directors.
  • Consolidate expenses: For multi-state companies, you will receive a consolidated bill for all your business entities in every state hosted.
  • Fast support and service: Over-the-counter expedited business document filing services are available for most states. Receive notification of all service of process forms in real-time and receive said service of process within 24 hours of receipt via Express Mail, facsimile, or email.
  • File correctly with expert assistance: By selecting Onebiz Services, you can file online using our safe and secure ordering system, or you can employ our professional business specialists' experience, knowledge, and dedication to meet the needs of your incorporation process. Our selection of choices, expansive territory in which we provide service, innovative technology, and enthusiasm in generating high levels of customer satisfaction sets us apart, making us the preferred choice across the nation in offering incorporation and registered agent services!
  • Registered agent service nationwide: Limited Liability Companies, corporations, and other business entities are generally mandated to have a registered agent within the state to comply. Take the initiative today to establish the legal protections the law allows you and your business!

*All written content on this site is for informative purposes only and is believed to be from dependable sources. However, we make no representations of its accuracy or completeness. Opinions herein are solely those of our editorial staff. Discuss all information and ideas in detail with your advisor before implementation. We do not obtain commissions or referral fees for selling products. The existence of this website on the Internet shall in no direct or indirect way be construed or interpreted as a solicitation to sell or offer to sell advisory services to residents of any state other than where we are lawfully permitted.*

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