Top LLC Services Comparison Table
Choosing an LLC formation service provider can be a difficult and confusing decision. There are many considerations to take into account, such as the level of expertise required, the cost of services rendered, customer support and many additional features. This comparison table will provide an overview of LLC formation service providers so that you can make an informed choice about what is best for your needs.
Frequently Asked Questions
What is an LLC?
A Limited Liability Company is a company with the legal principle of limited liability which protects its owners from debts and obligations.
The LLC, or sometimes referred to as a ‘Limited’, was designed because of this need for protection. Its lengthier name, ‘Limited Liability Company’, was derived in order to distinguish it from S Corporations which require a slightly different set of rules.
The LLC is one of the most widely used business forms in the United States. This type of company structure was made possible after changes to state laws that took place between the 1970s and 1990s.
What is the downside to an LLC?
LLC’s have so many benefits, but the two main cons are:
1. LLCs are subject to Double Taxation which means that income and profits are taxed twice; once at the company level and then again at a personal level when distributed to owners.
2. Due to their pass-through tax status, LLCs may not receive as much tax reduction as corporations. This can make them more costly for small businesses and new companies who are looking at their balance sheets.
What state do I form my LLC in?
The first step when choosing an LLC is deciding on a location. You need to determine where you’re going to be doing business and which state’s laws will apply to your LLC.
If a company gets registered in the wrong state, it could be subject to back taxes and penalties.
One good way of deciding is by thinking about where you’ll be doing business. If you’re going to operate mainly online then it doesn’t really matter which state’s laws apply; just pick one that has an affordable fee structure.
Who should form an LLC?
If you are planning on starting a small business, an LLC can be useful. Here’s why:
If your business is profitable and has the potential to grow, it may make sense to form an LLC. An LLC limits your liability exposure in case anything goes wrong with your company. It shields you from personal bankruptcy if things go south. You’ll also have the legal protection of an LLC, which means that your personal assets will be protected and won’t be at risk in case of a lawsuit. An LLC is a good idea if you want to raise funds from investors or partners. Investors like the structure and protection of an LLC. When they invest in your business through a partnership, they are putting their own assets at risk. If your business is sued or fails, they can lose money. An LLC protects them from this risk since personal assets are shielded from company liabilities and debts.