Incorporate LLC

LLC (limited liability company) provides the benefits of liability protection and pass through taxation features of sole proprietorship or partnership. Many small business owners prefer this form of corporation as it provides greater flexibility in management. The general characteristics of LLC\'s are limited duration of existence, no double taxation and member or owner managed business.

LLC\'s can be incorporated by filing with the state authorities. The general procedure is that of incorporating a corporation. The advantages over a corporation are that there is no need to get the consent of shareholders, no need to issue shares and no need for the board of directors. When selecting the name of the business, it should end with LLC. Since the existence of LLC is limited, the duration has to be mentioned. Since LLC\'s are run by member-owners, they have their own operating agreement. Once these are decided, the LLC can be incorporated by filing with the state authorities.

LLC\'s have to comply with state laws and regulations. The tax on LLC is passed on to the members. A Federal Employer Identification Number(EIN) has to be obtained by filing Form SS-4 under IRS, if there is an intent to employ people. There is no need to obtain federal licenses except for certain businesses. Also a sales tax permit must be obtained. To incorporate LLC, one can get the help of a lawyer or an intermediary agency to help file or do it by themselves. Because the LLC lets the income flow through the owner, it doesn\'t mean that the owner can siphon money to their account. If the state finds this out, the owner will be held personally liable. Running a business is important and equally important is the choice of business structure and the incorporation of it. Hence, it is advised to get counsel from a lawyer before incorporating.