If you’re thinking about starting a new business or running one as a sole proprietor or partnership, you might be wondering if it’s time to form a limited liability company (LLC). An LLC is a legal structure that combines a corporation’s liability protection with the tax advantages of a partnership or sole proprietorship. In this article, we will look at the top five benefits of making yourself an LLC.
How much should my business earn before registering an LLC
The answer is quite simpler than you may have thought. There is no actual amount that your business should be making or there is no actual amount of profit that your business should be making before you even consider registering an LLC or a corporation.
Benefits of making yourself an lLC
The reason why you want to consider registering an LLC or a corporation is because of the advantages that these business entities provide you and your business. There are several benefits to registering an LLC.
1. An LLC will provide you with legal protection, shielding your personal assets against any liabilities or lawsuits your business may incur.
2. There is the benefit of pass-through taxes, where any net income your business generates is passed down directly to you as the LLC owner, avoiding double taxation that exists with corporations.
3. An LLC provides credibility and reputation to your business, as you operate under a registered name rather than your personal name.
4. Managing an LLC is simpler than managing a corporation, with fewer paperwork requirements and no directors or shareholders to maintain.
5. The distribution procedure for an LLC allows for greater flexibility in profit distribution percentages, with the ability to draft the type of distribution portions that you see fit. Regardless of the amount of profit or income your business generates, registering an LLC is a wise decision for these reasons
How much does it cost to start an lLC
The cost to start an LLC varies from state to state in the USA. The fee involves :
State fee for the filing of article of association,
Registered agent fee,
LLC initial report,
LLC annual report,
Corporation initial report,
Corporation annual report,
Incorporation attorney signature &
Profession service fee.
Not all these fees are not applicable for all the states and even if applicable some fees need to pay after the LLC registration or at the end of the financial year. You can save the registered agent fee if you, your family member or friend is a resident of that state and the state law allows to appoint you, him or her as a registered agent. To know more you can read our this article.
You can save the profession fee also if you register it online by yourself. But there will be some risks if you doing blunders if you don’t have proper knowledge. Here are some states with their official filing fee during the LLC registration :
New York – 150 USD
California – 75 USD
DC – 220 USD
Delaware – 140 USD
Florida – 155 USD
Georgia – 100 USD
Illinois – 500 USD
New Mexico – 50 USD
Nevada – 75 USD
Wyoming – 103 USD
There are the primary LLC requirements for the registration –
USA physical address,
USA phone number,
Business email address,
Registered agent seal, signature and address.
Get All At One Place
If you don’t want to buy one LLC requirement from here , another from there then I can recommend you this website. Here we will get your LLC registration done in 5 days with all the requirements fulfilled. The service has 3 packages – 50 , 100 and 150 USD. Time 5 days to 10 days.
Though you will deposit the fee during placing order, you will be 100% safe as it will be with a safe escrow and you will release or approve the payment only your company is registered. Here are what you will get :
Express EIN in just 4 days
US unique physical address
Cost – 50 USD
Delivery – 5 days
You approve the payment only after your LLC is registered