LLC: Que Es y Por Que Formar Una LLC?
A Limited Liability Company (LLC) is a business formation in the United States that combines the characteristics of a corporation and a partnership.
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LLC Basics
An LLC is a business structure allowed by state statute. LLCs are popular because they offer personal asset protection for their owners. Another reason LLCs are popular is because they are easy to form and maintain. LLCs can be formed by a single individual or a group of individuals. The process for forming an LLC is usually simple and can be done online.
What is an LLC?
An LLC is a business structure that can combine the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. An LLC is not a corporation, so it does not have stockholders. Instead, members own an interest in the company.
The benefits of forming an LLC
There are many benefits of forming an LLC for your business. LLCs are cheaper and easier to form than corporations, and they provide more flexibility in how you can structure your business and distribute profits. LLCs also offer personal liability protection for their owners, which is important if you are starting a high-risk business or if you are worried about being sued.
How to Form an LLC
An LLC is a business structure that can combine the pass-through taxation of a sole proprietorship or partnership with the limited liability of a corporation. This can give business owners the best of both worlds when it comes to taxation and liability. Let’s take a look at how to form an LLC.
Choose a business name
You must choose a name for your LLC that is distinguishable from the names of other business entities on record with the State Corporation Commission. You may conduct a business entity name search on the SCC website.
Your LLC’s name must include either the phrase “Limited Liability Company” or the abbreviation “LLC” or “L.L.C.”
You may reserve a name for your LLC by filing an Application for Reservation of Name (Form LLC-1). The application may be filed online, by mail, or in person at any SCC office. The initial reservation is effective for 120 days and may be renewed for additional 120-day periods.
File the Articles of Organization
The first step in forming an LLC is to file your company’s Articles of Organization with the state in which you plan to do business. While most states use the term “articles of organization” to refer to the basic document required to create an LLC, some states call it a “certificate of formation” or “certificate of organization.” To learn about the specific requirements of forming an LLC in your state, choose your state from the list below.
Once you have gathered the required information, you will need to draft your Articles of Organization. Most states provide a form for this document, which you can typically find on the Secretary of State’s website. Once you have completed the form, you will need to file it with the Secretary of State’s office in your state. The filing fee is typically between $100 and $500, although it may be more or less depending on your state.
After you have filed your Articles of Organization, you will need to draft your Operating Agreement. This document outlines the ownership and operating procedures for your LLC. While not required in all states, an Operating Agreement can help prevent future disagreements between members and can make it clear what rights and responsibilities each member has. Once you have drafted your Operating Agreement, each member will need to sign it.
Appoint a registered agent
Your LLC must have a registered agent in the US. A registered agent is someone who agrees to receive official legal documents on behalf of your LLC. This can be an individual or another LLC in the US. The agent must have a physical address in the US (not a P.O. box).
Create an operating agreement
An LLC’s operating agreement is similar to a partnership agreement or a corporation’s bylaws. The operating agreement is an internal document that outlines the LLC’s structure, management, and regulations. This document doesn’t have to be filed with your state, but it’s a good idea to create one anyway.
If you don’t have an operating agreement, your LLC will be governed by the default rules established by your state. These rules may not be what you had in mind for your business, so it’s best to take the time to create an operating agreement that suits your specific needs.
Operating agreements for LLCs can be complex or simple, depending on the nature of your business and how many members you have. You can hire an attorney to help you draft your operating agreement, or use an online template.
Running Your LLC
An LLC, or limited liability company, is a business structure that can shield you from personal financial liability. When you form an LLC, your personal assets are typically protected from creditors and lawsuits that may arise from your business dealings.
Comply with annual requirements
It’s important to keep your LLC in good standing with the state by complying with annual requirements and filing necessary paperwork. Depending on the state in which your LLC is registered, you may be required to file an annual report and/or personal property tax return. You may also be required to obtain a business license in order to operate your LLC. Failure to comply with annual requirements can result in your LLC being dissolved.
To stay on top of annual requirements, it’s a good idea to set up a calendar reminder for yourself. You can also hire a registered agent service to handle compliance for you. Some LLC formation services will also help with annual compliance.
Pay taxes and fees
You must pay annual taxes and fees to the state in which your LLC is registered. The amount you pay will vary depending on the state, but it is typically a very small fee. You will also be required to file an annual report with the state, which may have a filing fee.
Keep business and personal finances separate
One of the benefits of running your LLC is that you can keep your business and personal finances separate. This can be helpful come tax time, and it can also help you stay organized throughout the year.
To keep your finances separate, you’ll need to have a business bank account and a business credit card. You’ll also want to make sure that you’re tracking all of your business expenses so that you can deduct them come tax time.
Keeping your finances separate can be a bit of extra work, but it’s worth it in the long run. Not only will it make things easier come tax time, but it will also help you stay organized and on top of your business finances.
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