While forming a company of your own may seem overwhelming, it doesn't have to be that way. With a clear understanding of LLC requirements and the help of incorporate.com in meeting your LLC filing requirements, you can protect your assets while maintaining full control over your business.
Less LLC filing requirements result in significantly more freedom with this structure when compared to a corporation. An LLC can be a single-owner business, a partnership, or a multi-member structure. In addition, the members can be individuals, corporations, other LLC's, or foreign entities. There is no limitation on the number of members in an LLC. However, certain elements of structure are requirements for an LLC.
Your LLC must have a name that is unique and is not the same or confusingly similar to another business. In addition, the name must contain the term 'LLC' or 'Limited Liability Company'. The use of 'Inc.' or 'Incorporated' in the name of an LLC is generally prohibited. Finally, there are generally prohibitions on the use of financial names, such as 'Bank', 'Insurance', or 'Trust'. Each state has a unique set of name requirements that incorporate.com will follow when filing for an LLC.
Some states require a registered agent to be a point of contact for all official paperwork. In many cases this registered agent must be a physical resident of the state you are forming in. The agent does not need to be an owner or employee of the LLC. incorporate.com provides registered agent services as part of your LLC formation package.
While an Operating Agreement is not part of the LLC filing requirements for the state, it is extremely important. In fact, it's best to have the Agreement worked out before you file any forms with the state. That way, you won't have an upset partner pulling out at the last moment, or be unable to add a new member that you wanted to include. The Operating Agreement spells out a number of very important details, including management structure, investment of additional capital, division of profits, and what happens to the LLC if a member leaves or passes away. This written agreement will be needed by courts, investors, banks, and creditors as you operate your business. While Operating Agreements are not an LLC reporting requirement, they are highly recommended.
The first step to the LLC application form is filling out an Articles of Organization form. This is a legal document that is filed with the state in which you are forming. There are many names for this form – Certificate of Organization or Certificate of Formation, for instance. Every state has its own form that must be completed in order to create an LLC. Some states may also have a Limited Liability Company Application to fill out. incorporate.com will use the information that you provide to us to complete the form correctly for the state that you select. We have a presence in all 50 states and the District of Columbia so that we always have the correct forms.
Depending on what type of business you are forming, you will need a variety of business licenses to operate in your state. You may need a general business license, tax registrations, health permits, zoning or land-use permits, and state-issued occupational licenses. Getting everything in order can be overwhelming. Fortunately, incorporate.com can make it easy to obtain all of these documents for your business. We can research your Business License requirements and provide you with a detailed report based on the information that you provide us about your business.
As part of LLC formation documents, some states require a Statement of Information form to be filed with the state along with your Articles of Organization. California calls this form LLC-12 or form LLC-12r. This form is a simple statement of your company name, who the partners are, and what the business address is. incorporate.com can also file this form on your behalf when we file a California LLC.
LLC tax form 1065 is the form that is used to file a tax return on partnership income. This form is filed along with your other income tax documents. Partnerships and LLCs do not pay separate taxes, but pass through all profits and losses to the partners.We can help you get your LLC tax return form 1065 today!
Tax form 1099 is a form that other companies may issue to your LLC if they did business with you and paid you over $600. This form would be part of you and your partners' income tax filing.
An LLC tax extension form, such as Form 7004, is used to file for more time to fill out your LLC taxes. This would give you five months extra for your partnership to finish their tax documents. In a single-member LLC, you wouldn't need to file a LLC tax extension in addition to a personal extension. In a partnership, however, separate forms for a business extension and personal extension are needed. In addition, make sure your partners are filing extensions too – it doesn't work out well when you extend but your partner files!
Tax form 8832 is a form that an LLC would use if your partnership decides to elect a different tax standard. One of the great benefits of an LLC is that your group can choose to be taxed as a corporation, partnership, or disregarded entity.
You can find more information about all of these tax forms on the IRS website. At incorporate.com, we cannot give specific tax or legal advice, but we can help you obtain the forms you need.
The specific forms needed by an LLC vary by state. However, there are some that are common to every state resulting in a basic checklist with requirements for an LLC.
The Articles of Organization are the basic statement of your business name, members, and contact information. incorporate.com will complete this form on your behalf using the information that you provide to us. Each state's Secretary of State has their own form that incorporate.com completes. Some states require paper forms and some states accept electronic forms. incorporate.com has a presence in all 50 states and the District of Columbia so that we are able to properly file all state forms on your behalf.
Along with being an LLC, your business also needs to be able to operate locally in its daily business activities. This requires you to have all of the necessary business licenses and registrations on file with appropriate local and state agencies. Possible license needs include a general business license, tax registrations, health permits, occupational licenses, reseller licenses, and zoning and land-use permits. incorporate.com can help you get all your paperwork in order with our easy-to-use Business License Compliance Package. Let us help you today!
While these vary according to the state, most states require a yearly update to be filed from all LLC's detailing any changes in members, address, or contact information. This is part of an LLC's reporting requirements. In addition a yearly maintenance fee is assessed (see LLC Financial Requirements tab). incorporate.com can file these Annual Reports on your behalf through our Annual Report Preparation and File service.
When you file your portion of the LLC profits with your normal federal income taxes (as an LLC allows you to do) you will need a tax form 1065. If you want your LLC to be taxed under a classification other than the default, you will need to file a Form 8832 to change the election. For instance, you may choose to have your LLC taxed as a corporation, if that is more beneficial. A tax accountant can help you understand the details of your LLC taxes.
Of all Limited Liability Company requirements, the financial requirements can be the most challenging to understand. Again, financial fees and filing are different in each state, although there are times you can file your LLC in a state other than where you live to take advantage of better fee structures. Here are some key financial LLC requirements.
While getting and filling out the Articles of Organization form is free, there is a fee to file the form with the state to officially recognize your new LLC. Generally, these fees are $50 – 800 at the time of this writing. incorporate.com can help you file your LLC paperwork in any state, and we will help you fully understand the fees involved. Once your LLC is up and running, you will have yearly limited liability requirement fees that you need to pay to the state in which you formed your LLC. It is important to stay compliant with all fees and filing requirements in order to maintain your LLC protection.
While not legally required, a separate bank account setup for your LLC is an important part of maintaining your liability protection. When the company has a separate bank account, it is much easier to prove that you are maintaining a separate legal entity. LLC bank account requirements will vary from bank to bank, but they may need to see your Articles of Organization, business license, Operating Agreement, and Employer Identification Number (EIN). They will need all members who will have signing authority to be present when the account is opened.
LLC's will generally need to get an Employer Identification Number, which is available through the IRS free of charge. In addition, while the federal government does not tax LLC profits, certain local areas or states may do so. A tax accountant can help you make sure that you stay up to date with all LLC tax requirements.