WHAT IS LLC, How to Get EIN for LLC????
A limited liability company (LLC) is a legal status granted to businesses. An LLC is owned by one or more individuals who are referred to as “members.” If you’re the sole owner, it’s a single-member LLC. More than one owner is known as a multi-member LLC.
TYPES OF LLCS
An LLC is referred to as a “domestic LLC” when it is conducting business in the state in which it was formed. Normally when we refer to an LLC we are actually referring to a domestic LLC.
When an existing LLC decides to open offices or have any other physical presence in a new state, it needs to register as a foreign LLC.
A Series LLC is a unique type of LLC where a single “parent” LLC provides limited liability protection across a series of “child” businesses (individual protected series). Currently available in 17 states.
How to get EIN for LLC
Six Basic Steps to Start an LLC
Step 1: Select Your State
Step 2: Name Your LLC
Step 3: Choose a Registered Agent
Step 4: File the Articles of Organization
Step 5: Create an Operating Agreement
Step 6: Get an EIN
Select Your State
You can select a state by search all states rules and choose one You find best for your business,
Name Your LLC
The company name should follow the state guidelines in which the LLC will be formed. Also, the chosen name cannot already be an existing business name that’s recorded and established.
Choose a Registered Agent
Your LLC may be required to have a registered agent, which is a person or company that handles any legal papers on behalf of the LLC if there is a lawsuit.
File articles of organization
File articles of organization with your local office for Secretary of State. The articles of organization might also be called a certificate of formation or certificate of organization. Articles of organization are essentially legal forms that outline basic information about the company, and each state may have specific requirements. However, most states usually require the following: the name and address of the LLC, a description of the general purpose of the LLC, a list of the owners, and the name and address of the registered agent.
Create an operating agreement
An operating agreement is an internal document that stipulates how the LLC will be run and how it will be managed. The operating agreement should include procedures for how members will be organized if more than one and how profits and losses will be divided between the members.
Get an EIN
An Employer Identification Number (EIN) is a number used by the US Internal Revenue Service (IRS) to identify and tax businesses. It is essentially a Social Security number for a business.
EINs are free when you apply directly with the IRS. via fax, or by mail.
How are LLCs taxed?
LLCs have the advantage of pass-through taxation. This means the LLC’s profits pass through to its members, who pay taxes on their share of the earnings on their tax returns. Multi-member LLCs file an annual earnings report to the IRS using form 1065.
LLCS OFFER THESE BENEFITS TO SMALL BUSINESSES:
Limited liability protection
creditors cannot take or collect money from your assets to satisfy the debts of the business. Creditors are only able to seize assets from the company.
An LLC’s profits go directly to its owners, who then report their share of the profits on their individual tax returns. Hence, an LLC’s gains are only taxed once. This is known as pass-through taxation.
Limited liability companies are relatively easy to form and maintain with little paperwork.
Flexibility in structure the ownership and management of an LLC: There are no limits to the number of owners, called members.
LLC’s also have tax benefits since the company’s income, or losses are reported on the owner’s tax return.
Access to business loans and credit
Once you have formed an LLC, your business can begin building a credit history. This will help your business access loans and lines of credit.