Are you ready to form an LLC in the USA? People usually get confused when it comes to making a business decision, and without proper guidance, they end up making mistakes.
With this same token, this global portal was launched to ensure everyone gets access to a detailed guide on how to do anything online from anywhere they are in the world. Alright, let’s dive into the topic of today; “How To Form an LLC in the USA”.
In this article, I will be showing you step by step guide on how to form an LLC in the USA, very fast and easy, no matter your current country location. We are going to be doing that with BetterLegal Inc.
Before we begin, let’s take a quick look at the meaning of LLC and the different types of business registration. Now, mind you, you can still use BetterLegal to register other forms of business registrations other than LLC, okay.
- Forming an LLC For Your Business
- Advantages and Disadvantages of LLCs
- Limited Liability Company vs. Partnership
- What Are Some Examples of LLCs?
- Are Limited Liability Companies Taxed Differently Than Corporations?
- Forming an LLC with BetterLegal
- BetterLegal Services
- LLC Formation Process with BetterLegal
- Final Thought
- Useful Resources
What is LLC?
A limited liability company (LLC) is a business structure in the U.S. that protects its owners from personal responsibility for its debts or liabilities. Limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship.
Is it worth it to form an LLC?
While the limited liability feature is similar to that of a corporation, the availability of flow-through taxation to the members of an LLC is a feature of a partnership rather than an LLC.
Forming an LLC For Your Business
LLC requirements vary from state to state, but there are a few things that are very common and similar in each state of formation. To begin with your LLC business formation, the first thing every owner or member have to do is to choose a business name. You will have to first check if the name is available and once it is, you can then claim the name and proceed with your registration.
Another thing you need to get is the “Articles of Organization”. These articles are documented and filed with the state where you formed your LLC in. These articles are designed to establish the rights, powers, duties, liabilities, and other obligations of each member of the LLC.
Other necessary business information that is included in the documents includes the names and addresses of the LLC’s members, the name of the LLC’s registered agent, and the business statement of purpose.
The articles of the organization are usually filed along with a fee paid directly to the state where you formed your LLC in. The paperwork and any other additional fees must also be submitted directly at the federal level; this is to obtain an employer identification number (EIN) for your new company.
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Advantages and Disadvantages of LLCs
The major reason why business owners decide to register their businesses as LLCs is just to limit the personal liability of both themselves and their partners or investors.
So many business people see an LLC as a kind of partnership blending, which is a type of straightforward business agreement between two or more owners, and a corporation, which has some form of liability protection.
Although having an LLC does attract so many useful features, they do also have several other disadvantages. Now, depending on state law where your business is registered, an LLC may have to be dissolved upon the death or bankruptcy of a member, while a corporation can exist in perpetuity.
Forming an LLC business type may not be a suitable option if the founder’s ultimate goal or objective is to launch a publicly-traded company.
Limited Liability Company vs. Partnership
There are definitely differences between an LLC and a Partnership type of business, but the primary difference between a partnership type of business and an LLC type of business is the fact that an LLC separates the business assets of the company from the personal assets of the owners, thereby insulating the owners from the LLC’s debts and liabilities; while it is slightly different in a partnership type of business.
Here are some of the similarities and differences between an LLC and a Partnership type of business.
- Both the LLC business type and the partnership business type are allowed to pass through their profits; and they can do that alongside the responsibility for paying the taxes on them, to their owners.
- Any loss can be used to offset other income but only up to the amount invested.
- If at any point, the LLC organized a partnership of some sort, it must file Form 1065.
- A business continuation agreement is used in an LLC to ensure the smooth transfer of interests when one of the owners leaves or dies. Without having such an agreement in place, the remaining partners must dissolve the LLC and create a new one.
What Are Some Examples of LLCs?
The name LLC seems more common than many people realize it. For instance, Alphabet LLC is the parent company of Google, and the same goes for companies such as PepsiCo Inc., Exxon Mobil Corp., and Johnson & Johnson. Some variation of these businesses includes sole proprietorship LLCs, family LLCs, and member-managed LLCs.
Many physicians’ groups, for instance, are registered as LLCs to help protect individual doctors from personal liability for medical malpractice awards.
Are Limited Liability Companies Taxed Differently Than Corporations?
The simple answer to this question is Yes. In a corporation, for instance, all the profits are taxed first at the corporate level, and then they will be taxed again the second time once those profits are distributed to the individual shareholders.
A Limited liability company, on the other hand, is allowed to pass profits directly to the investors so that they are taxed only once, as part of the investors’ personal income.
Now that you have gotten a good knowledge of what an LLC and Partnership business types are; it’s time to learn how to form an LLC in USA without stressing yourself at all.
For the sake of this tutorial, I will show you how to form an LLC in the US with BetterLegal; But If you want to explore other alternatives, then visit any of the listed partners below to register your business in the USA.
Our Most Trusted Business Partners for your LLC Registrations Are:
- Inc Authority
- BetterLegal Inc.
- MyCompanyWorks Inc.
- ZenBusiness, Inc.
- Business Anywhere
- NorthWest Registered Agent
Forming an LLC with BetterLegal
As I made mentioned at the beginning of this article, we will be forming an LLC in the USA using BetterLegal services.
So, let’s look at the services rendered by BetterLegal and then go through the step-by-step guide on how to form an LLC in the USA by yourself and from any country location you are currently in right now.
BetterLegal was founded in 2016 and the company provides many legal services for small business owners such as LLC formations and tax preparation services to help startups and businesses who are looking to take their company public or sell it off.
For instance, if your company is based in the United States and you are looking to take on new investors or sell it off, then you can’t go wrong with BetterLegal. Their website promises over $100K+ for companies that receive offers from interested buyers.
These are some of the services offered by BetterLegal Inc.:
1. LLC Formation and Incorporation
The BetterLegal company will help you as a business owner, to form an LLC or corporation for your business in the USA. Their business registration offers are fully packed. These offers include all registration forms, tax ID numbers, EIN, and much more.
2. Startup Legal Services for Your Business
With BetterLegal, almost all your business needs are met as they offer so many legal services for startups at a reasonable price. Their three-step process includes the following:
- Assisting you with setting up a physical office space.
- Helping you with all state licenses.
- Guide you with respect to your taxes.
- Help you set up a great payroll service.
- Help you with your corporate bookkeeping, and also, accounting support if necessary.
- Assist you with employee health insurance packages to keep them productive on the job instead of worrying about their medical bills getting paid and so much more.
3. Company Website For Your Business
BetterLegal services include website design for your business. Their website design services are integrated into their platform in such a way that you can buy a domain name and also hosting from them.
To learn more about how to build a company website for your business, read my previous post on the Detailed Guide On How To Design A Professional Website and Blog For Your Business
LLC Formation Process with BetterLegal
It’s time to form an LLC the right way using BetterLegal, and I’ll advise you to follow me step by step as I go through each step of registration for you. Let’s get started, shall we?
Duration 15 minutes
Step 2. Select a Business Formation Type
According to the image above, select LLC and proceed to the next page.
Step 3. What Type of LLC do You Need?
If you are the only founder of the business, select the single-member LLC, but if you are more than one person, then you should select the Multi Member LLC.
Now select which state you want to form your LLC in. If you don’t have any in mind, then choose either Kentucky or Colorado, their fees are much lesser than other states.
Step 4. Start the LLC Formation Questionnaire
This LLC questionnaire will take you just 3 min to finish and you will be done in no time. Click on Start to proceed.
Step 5. Search Your Business Name Availability
Visit the name search page to check if your business name is available before you proceed to the next step. This is to avoid using a name that is already owned.
Step 6. Enter Your Business Name
After you have verified that your chosen business name is free and available for use; you can go ahead and enter it here.
Step 7. Explain What Your Business is About
What is your business all about? Give a brief explanation here and proceed to the next step.
Step 8. Enter Your Personal Name
Please enter your correct legal name here, it will be used as the owner of the business that is been registered.
Step 9. Enter Your Email Address
Enter your correct email address and proceed to the next step.
Step 10. How Much are You Starting the Business With?
Enter the amount you used to start the business. Digits only, no sign.
Step 11. Enter Your Business Address
If you are already in the USA, then enter your business Address here. But, if you are applying from another country, or as a foreigner, visit shipito.com and get a free USA address.
Step 12. Enter Your Business City, State, and Zip
Again, if you are already in the USA, then enter your business Address here. But, if you are applying from another country, or as a foreigner, visit shipito.com and get a free USA address.
Step 13. Enter Your USA Phone Number
Enter your USA phone number here. But, if you are a foreigner and do not have a USA phone number; then visit Dingtone.me and buy a USA phone number at an affordable rate. Proceed to the next step.
Step 14. Choose a Registered Agent
If you already have a registered agent for your business, you can select the second option; But, if you don’t, then select BetterLegal as your registered agent and proceed to the next step.
Step 15. Answer provided Question and Proceed
It’s best you select no and proceed to the next step, as shown in the image above.
Step 16. Answer Business Question and Proceed
If your business is in the Auto sector and fits the question description above, then select yes; if not, select no and proceed to the next step.
Step 17. Do You Need a Tax Form?
You know what your business need, so select what you need and proceed. If you choose “Yes”, BetterLegal will help you fill all your taxes and keep you compliant with the Government.
Step 18. Answer Business Question
To be on the safe side, select no and proceed to the next step.
Step 19. Do You Need EIN?
Select yes if you are going to hire someone in your business; then proceed to the next step.
Step 20. Proceed to Make Payment for Your LLC
Click on “Continue to Payment”
Step 21. Review and Complete LLC Registration
Congratulation! You did it…
Now that you are done with this stage, it’s time to relax; a personal manager will be assigned to you and he/she will communicate with you to finalize your business registration and you will receive your documents as fast as possible.
Estimated Cost: 349 USD
- USA Business Registration Details
- Business Registration Documents
- Business Address
- Business Registration Agent
- Tax & Accounting Services from BetterLegal
Congratulations! You have successfully formed an LLC in the USA from anywhere you are currently in the world. I believe I covered everything here. Feel free to like, and comment if you have any questions or contributions. Have a wonderful life.
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