Frequently Asked Questions
Where department do you file a Limited Liability Company to register? +
A Limited Liability Company files with;
What documents are filed with the secretary of state and IRS to register an L.L.C? +
Articles of organization are filed with the secretary of state to register an LLC, whereas a form SS4 is filed with the Internal Revenue Services to get an Employer Identification which helps to open bank account and filing taxes.
What contains an article of organization which is also known as article of formation to register an L.L.C? +
Article of organization generally includes;
Can an article of organization file electronically or it is sent by mail? +
You can file electronically, which is a faster route to form a limited liability company, but you can also send it via mail as well along with the required filing fee.
How can we check name availability of an LLC prior to filing with the secretary of state to make sure if the name is available to avoid re-filing? +
Mostly. Secretary of states maintains a database to check name availability online to make sure the name is available prior to file, incorporate a limited liability company, but there is no guarantee that you will get the name until it is approved by the state examiner.
What is an indicator and why an indicator is necessary to add at the end of an LLC? +
An indicator is used end of the LLC to distinguish the type of company and most states require add an indicator end of an L.L.C such as:
Do we need to retain an attorney to form a limited liability company? +
An attorney is not required to acquire a limited liability company unless it is a complex business and you need a guidance to protect your business from future lawsuits. But it is always advised to consult an attorney when you are starting a new business, regardless big or small, it saves you from an unexpected incident.
What is the purpose of form SS4? +
A form SS4 is used to get an EIN from the Internal Revenue Services which generally requires:
How soon does the Internal Revenue Services issue an employer identification number? +
The Internal Revenue Services issues an employer identification number same day provided a social security number is provided to the Internal Revenue Services.
If a social security number is not available a Form SS4 is faxed or it is sent via mail for a manual process which may take weeks to get an employer identification number.
Can a limited liability company has the flexibility to convert into a corporation or an S-Corporation for tax filings? +
It depends on each state most states do allow conversion from an LLC to corporation and vice-versa whereas a few do not allow conversion of the limited liability company.
A new EIN is obtained if the secretary of state allows for a conversion rather than using existing employer identification numbers.
Can a limited liability company move or domesticate from one state to another state with existing history? +
It depends on each state most states do allow to move a limited liability company from one state to another, whereas few do not allow and the same employer identification number is used.
How to add an additional member in the existing limited liability company? +
In most states articles of an amendment is filed to add a new member or remove an existing member of the limited liability company.
What is the cut-off date to file taxes for a limited liability company? +
Normally a limited liability company files taxes on or before April 15th of each year unless the 15th of April falls on Saturday or any other public holiday that pushes filing day on the first working day.
What is the processing time to file a limited liability company? +
In most states it is filed same day provided the articles of formation is filed electronically unless there is an issue with the entity's name.
Does an LLC renew or file an annual or biennial report to keep an active status? +
In most states a limited liability company files one of the reports such as;
Can a limited liability company be sued? +
Every legally registered entity can be sued and a limited liability company is one of the legally registered entities and it is capable to be sued.
Can you form a limited liability company other than your home state for an expansion in existing business? +
Yes, a limited liability company is eligible to be formed, other than the home state if you are doing business in other states as well.
Can a Non-US-Resident form a limited liability company? +
Yes, A Non-US-Resident is allowed to register a limited liability company, regardless of any immigration status or physically presented in the United States or not.
Can an LLC withdraw payroll for the members of the LLC and its employees? +
Members of a limited liability company are not allowed, whereas employees are eligible.
Who manages a limited liability company? +
Members and Managers look after a limited liability company affair.
What is the cost to incorporate a limited liability company? +
It depends on each state because every state has a different filing fee to register a limited liability company.
Who can serve as a registered agent of a limited liability company? +
A registered agent is required to register company in the United States of any type. A registered agent is a person or an entity who receives any official mail from departments.
A member or manager of the limited liability company can also serve a registered agent rather than using outside services.
What is an operating agreement and what is its importance? +
Operating agreement is necessary for a limited liability company, although it is not required to submit to the articles of organization but you can do so. Generally, an attorney prepares the operating agreement, though retaining an attorney to write operating agreement is also not required but it is recommended to save from lawsuits.
Operating agreement includes:
What is the importance of publications to create a limited liability company? +
A few states require to publish a legal ad or notice in newspapers in order to complete registration of a limited liability company. If it is not done so, your new business will not remain in good standing.
Can a manager manage an LLC rather than a member of an LLC? +
Yes, a manager can be appointed to manage a limited liability company and it must be disclosed in the operating agreement as well.
How does a limited liability company file taxes? +
A limited liability company has various ways to file taxes, which depends on how an L.L.C is structured. Such as:
Tax filings for a disregarded entity: A disregarded entity files a form 1040 along with schedules according to your income, such as you file “Schedule-C” for regular business income, schedule E for rental income and Schedule F for farming income.Tax filings for multi-member limited liability company: A multi-member limited liability company files form 1065 and it issues schedule K-1 to all members of an LLC to file income tax returns. A multi member limited liability company normally does not pay taxes rather members of limited liability companies pay taxes based on their share of income in the LLC.
Tax filings for a limited liability company as an S-Corporation: Filing taxes as an S-Corporation is also one of the unique features of a limited liability company which forces to someone to do business under an LLC due to its tax filings flexibility.A form 2553 is filed with the internal revenue services to get a consent from the IRS. S- corporation also a pass-through entity and it issues K-1 to all stockholders and they report income on their income tax return.
Resident and a citizen condition apply to form an S-Corporation. An S Corporation files from 1120S with the Internal Revenue Services to obtain permission for filing taxes as a corporation for an L.L.C.Tax filings for a limited liability company as a C-Corporation: An L.L.C can also file taxes as a regular C-Corporation and a form 1120 are filed and there is not a residency requirement applies.
Tax filings for a limited liability company as a partnership: A limited liability company also files taxes as a partnership.
How to calculate taxes for a limited liability company? +
A limited liability company does not pay taxes rather members of the LLC pays and they paid according to their ownership and net income in a limited liability company.