What is a limited liability company?

Is Forming A Limited Liability Company Difficult?

Most, if not all states only require the bare minimum in order to register a limited liability company.

You basically just need a few pieces of information to be on your way:

• Company name, mailing & physical addresses
• Responsible party’s name & address
• Registered agent’s name & address
• Officer(s) or Member(s) (for a limited liability company) name(s) and address(es)
• Number of authorized shares (for an S-Corp)
• Sometimes you may need a business purpose but the standard line of “The purpose of the corporation is to engage in any lawful activity for which corporations may be incorporated in this state” almost always will suffice.

Heck, some states like Michigan don’t even require any information for the single-member LLC member/manager (the person who “owns” the company) or any person for that matter.

That’s really not a whole lot of information, and the difficulty of gathering it all is relatively non-existent, especially if you’re running a small business in which the same person acts in all of those capacities.

It literally takes all of 10 minutes max to complete the process.

Is saving 10 minutes really worth spending $100+!?

I don’t think so, and all of the people I’ve “helped” do it themselves didn’t think so either.

Disclaimer: By “helped”, all I did was hang on the phone with them as they filled out the forms. I honestly didn’t need to do a single thing for them!

Look, I’m the first to tell people to outsource tasks in which they aren’t experts or don’t have anything to do with making money.

That advice generally comes with 2 exceptions:

1. You simply don’t have the free cash to pay for someone else to do the job, or
2. It’s something you can absolutely do on your own without much time or effort spent

When it comes to incorporation–a small S-Corp or forming a single-member LLC or partnership–that latter exception comes into play.

Of course, there’s always a drawback to DIY, and particularly in business matters but. this is one of those times when you should be doing something on your own rather than outsourcing tasks.

Based solely on the simplicity of the task and how much you’ll be saving it is worth the few minutes that incorporating will take out of your day.

Преимущества Limited

Выясняя, что такое Ltd, бизнесмен первым делом узнает об ограниченности ответственности учредителей — главном преимуществе компаний Limited. То есть если вы являетесь владельцем, то не отвечаете своим личным капиталом по долгам фирмы, если она станет неплатежеспособной, или по любым судебным искам против нее. Остальные преимущества следующие.

Прежде всего,  Ltd. — это отдельное юридическое лицо. Его можно покупать и продавать, как и любой коммерческий актив. При продаже бизнеса или передаче прав собственности компания не прекращает своего существования, а значит нет перерывов в ее работе.  Это также обеспечивает определенную коммерческую защиту, особенно если фирма владеет товарными знаками, патентами, репутацией или узнаваемым брендом.

Название компании Ltd является уникальным, и ни один другой бизнес в стране регистрации компании не может пользоваться таким же или даже похожим названием. Это преимущество недоступно, к примеру, зарегистрированным индивидуальными предпринимателям, ведь совпадения по фамилии — это достаточно частое явление.

Плюс ко всему, компания Ltd. предлагает больше возможностей для налогового планирования. Во-первых, есть определенные налоговые льготы для Ltd компаний по сравнению с индивидуальными предпринимателями. Во-вторых, являясь владельцем компании, вы можете переносить срок выплаты дивидендов, или реинвестировать прибыль до уплаты налогов с дохода

How To Form A Limited Liability Company

Forming an LLC is easy. Our state-by-state LLC formation guides streamline the process into six easy steps. Just choose your state from the dropdown below.

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

Step 1: Select Your State

For detailed step-by-step instructions for forming an LLC in your state, choose your state from below:

• Alabama
• Alaska
• Arizona
• Arkansas
• California
• Colorado
• Connecticut
• Delaware
• Florida
• Georgia
• Hawaii
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Mississippi
• Missouri
• Montana
• Nebraska
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• Tennessee
• Texas
• Utah
• Vermont
• Virginia
• Washington
• Washington D.C.
• West Virginia
• Wisconsin
• Wyoming

Step 2: Name Your LLC

You will need to give your business a unique name that is distinguishable from all registered names in your state when you file your LLC’s formation documents. 

Our Business Name Generator and our How to Name a Business guide are free tools available to entrepreneurs that need help naming their business.

Step 3: Choose an LLC Registered Agent

Your LLC registered agent will accept legal documents and tax notices on your LLC’s behalf. You will list your registered agent when you file your LLC’s Articles of Organization.

Step 4: File Your LLC’s Articles of Organization

The Articles of Organization, also known as a Certificate of Formation or a Certificate of Organization in some states, is the document you will file to officially register an LLC with the state.

Step 5: Create an LLC Operating Agreement

An LLC operating agreement is a legal document that outlines the ownership and member duties of your LLC.

Our operating agreement tool is a free resource for business owners.

Step 6: Get an EIN or Transfer an Existing EIN

An Employer Identification Number (EIN) is a number that is 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. For more information about whether your LLC is required to obtain an EIN, visit our EIN for LLCs guide.

Who Will Manage Your LLC?

Generally, an LLC is managed by its members, known as . However, in some cases, members will appoint a manager to handle the LLC’s daily operations, and this is called .

The membership of an LLC and the way it will be run are laid out in a legal document known as an operating agreement. This is an internal agreement among all the members of the LLC.

Печать ООО на английском языке

Напоминаем что печать в обществах с ограниченной ответственностью иметь не обязательно, однако вы вправе сделать печать. 

До 7 апреля 2015 г. законодательством России было предусмотрено, что в ООО должна быть круглая печать, на которой написано её фирменное наименование. Но 7 апреля 2015 г. правила изменились. Теперь ООО вправе иметь печать, но не обязана её получать О том, что у общества есть печать, должно быть указано в уставе. Каких-либо требований к форме печати и её содержанию нет, поэтому вы можете использовать как латинские символы, так русские. Кроме того, необязательно указывать ОГРН организации. Можно, чтобы на печати был лишь логотип. Но не забывайте прописать в уставе, как выглядит ваша печать. 

***

Таким образом, на английском языке ООО — LLC (Limited Liability Company). Использовать англоязычное наименование компании российское законодательство не обязывает, однако при наличии такого желания, можно прописать его в уставе и зарегистрировать в общем порядке.

Еще больше материлов по теме в рубрике: «Бизнес». 

CREATING AN LLC

It is important that the organizer(s) of a prospective LLC follow the
«enabling statutes» or formation laws of the state in which
the company will be formed in order to be designated as an LLC. Without
this designation, the company will lack the protection of limited
liability and will be treated as a general partnership. Therefore, the
first step in creating an LLC is to find out your state’s specific
enabling statutes.

The organizer does not have to be one of the company’s members. The
organizer’s function is to file the articles of organization, a
task which can be accomplished by a lawyer, a hired agent from a service
company specializing in such business, or a manager of the prospective
company.

NAMING AN LLC


Before forming an LLC, the company name must be reserved with the
secretary of state or its equivalent. Most states require that the words
«Limited Liability Company» or the abbreviation
«LLC» be included in the name of the company. In some
states, «Limited Company» or «LC» is the
preferred designation. In all states, though, the name of the LLC must not
resemble the name of any other corporation, LLC, partnership, or sole
proprietorship that is registered with the state.

THE ARTICLES OF ORGANIZATION


This form, called the articles of organization or certificate of
formation, must be obtained from the secretary of state’s office or
its equivalent, filled out by the organizer(s), and filed with the same
office. A filing fee, which varies from state to state, will also be
charged. This simple document requires, at minimum, the company name and
address, a description of the business to be conducted, the name and
address of the registered agent (the contact to whom notices of lawsuit or
other official matters can be served), the names of the company’s
members and managers (usually the members themselves), and the dissolution
date. Other information may be required, depending on which state the
articles of organization are filed in. It is important that the articles
describe the business in a way that will allow the Internal Revenue
Service to designate the company a partnership for tax purposes, and not a
corporation. In order for the I.R.S. to do so, the articles must show that
the company possesses no more than two of the following four
characteristics (which describe a corporation):

• Perpetual existence
• Centralized management
• Free transferability of ownership interest
• Limited liability

One of the easiest ways to show that the LLC is not a corporation is to
limit its existence. In fact, most states require that a dissolution date
be determined in the articles of organization. On this date the
LLC’s assets will be liquidated and its business will cease
(occurrences such as the mutual written agreement of the members or the
death or retirement of a member may also terminate the LLC’s
existence before the dissolution date). If no date is specified, a default
period of usually 30 years will be enacted. However, the members may
decide to continue the LLC’s existence at a later date.

FEES


Filing fees vary from state to state, from $50 to $500. In addition, some
states require the LLC to publish an announcement of its creation to the
public in a generally circulated newspaper. This latter requirement can be
very expensive, ranging from $500 to $2,000.

THE OPERATING AGREEMENT


At the first meeting of the members, called the organizational meeting,
an operating agreement should be drafted. Although each
state has laws governing how LLC’s should be operated, the members
should create their own operating agreement to document that all members
agree on how the company should be run. It should be carefully constructed
with an eye to preventing future disagreements and deadlocks. Most
basically, the agreement should address the division of profits,
members’ voting rights, and company management. A good operating
agreement will address the following issues:

Types of LLCs

Type of LLC	Definition
Domestic LLC	A domestic LLC is one formed and operated within your state. If you’re looking to form an LLC, this could be a good place to start. Your state has the authority to govern your LLC if formed within its jurisdiction.
Foreign LLC	A foreign LLC is one that operates in a different state than the state in which it was formed. For example, you might have formed your LLC in Texas, but you’re operating your LLC in Georgia for tax purposes or a better client base. This does not mean that the LLC was formed internationally, just in different states. The members of an LLC can all live in different states.
Member-Managed LLC	This type of LLC is where all owners (members) are operating the business themselves, equally. This is the most common type of LLC. Even though each member is apart of the same LLC, each member must file taxes independently. When operating a member-managed LLC, we recommend drafting an LLC Operating Agreement between all members of the limited liability company. The LLC Operating Agreement outlines the responsibilities and expectations of each member. Although the requirements may vary by state, we recommend all LLCs sign this agreement.
Manager-Managed LLC	If some of your partners want to remain passive in running the LLC, then this is a manager-managed LLC. The owners are not as involved as the people who are hired to run the business. Either members or non-members can be managers of the LLCs.
Single-Member LLC	This is an LLC with only one member. If you want to form an LLC alone, this is a great option. You will still need to submit the formation information and follow the rules of an LLC, but you will have the many benefits offered to LLCs. It’s also much easier to handle the personal income tax requirements than self-employment taxes. Income tax from your corporation can be handled by attorneys or accountants.
Multiple-Member LLC	This is an LLC with multiple members. A multi-member LLC must be more careful in spelling out carefully with the LLC Operating Agreement the rights of each member in case the LLC folds or if there is a death or disagreement. The Operating Agreement can be updated as changes are made to the LLC.
Series LLC	A Series LLC is a unique form of an LLC that acts as a master LLC or umbrella over a series of separate legal entities. This can be a series of members, assets, managers or interests. The series LLC started in Delaware and is now an option in only eight states: Delaware, Illinois, Iowa, Nevada, Oklahoma, Tennessee, Texas, and Utah.
Restricted LLCs	Restricted LLCs are a type of LLC available in Nevada only and they were launched in 2009. These types of LLCs choose to be restricted within their Articles of Organization and therefore cannot make certain distributions among members until 10 years after forming their LLC.
L3C	An L3C company is a for-profit company with a stated philanthropic social purpose. This type of LLC is a hybrid business structure that uses the tax flexibility of an LLC, the social benefits of a nonprofit organization, and the branding and market positioning advantages of a social enterprise.
Anonymous LLC	An anonymous LLC is where the ownership details of the LLC are not made public by the state the LLC is registered in. New Mexico is one of the only states that allows for truly anonymous LLCs.

Limited Liability Company Misconceptions

Before we get into the meat of all this stuff, I want to clear up a couple of misconceptions regarding forming a limited liability company that gets thrown around pretty freely.

First and foremost, it’s important to know that a limited liability company (or any “incorporated” structure) is solely a legal issue.

All of these things are designed to create entities separate from the people running them for asset and legal protections.

That’s why you have to go through a state to form a business rather than the IRS–the IRS has nothing to do with the entities whatsoever. You will never be told by the IRS “what form of business you need to be”.

With that said, you want to speak to an attorney to see which legal structure will be best for your particular needs based on your personal assets/finances as well as what your plan is for the business in the future–not an accountant.

Secondly, single-member LLCs are treated the same way as a sole proprietorship for federal tax purposes.

Due to that like treatment, there is no monetary threshold for “when you should form a limited liability company”.

Again, the structure is strictly about making an entity separate from those who run it so if you need those protections, you do it regardless of income or profit.

Now that the BS is put to rest, let’s get going with the goal of showing you why you should do your own limited liability company formation and save yourself a buttload of time and money!

Ссылки

19 ноября 2011 Автор КакПросто! Наверняка каждый хоть раз в жизни сталкивался с понятием ЗАО, но далеко не все знают, как расшифровывается эта аббревиатура, хотя каждому образованному человеку необходимо это знать. Так что же такое ЗАО?

ЗАО расшифровывается как закрытое акционерное общество, это одна из организационно-правовых форм коммерческих организаций. (Коммерческие организации также могут быть открытыми акционерными обществами (ОАО), полными товариществами, товариществами на вере (коммандитными товариществами), обществами с ограниченной ответственностью (ООО), обществами с дополнительной ответственностью (ОДО), унитарными предприятиями, а также производственными кооперативами). Главной особенностью ЗАО является то, что количество акционеров в нем не должно превышать пятидесяти дееспособных человек, а уставный капитал должен быть равен номинальной стоимости акций общества, которые приобрели акционеры. Акции закрытого акционерного общества делятся на обыкновенные, дающие право голоса на собраниях, но не гарантирующие получение дивидендов, и привилегированные. Привилегированные акции не предоставляют право голоса, зато обеспечивают первоочередное получение дивидендов. В Законе сказано, что минимальный уставный капитал закрытого акционерного общества должен быть не менее стократной суммы минимального размера оплаты труда. ЗАО создается для извлечения прибыли и может осуществлять любую легальную деятельностью

При этом важно помнить, что определенные виды деятельности подлежат обязательному лицензированию. Общее собрание акционеров общества является высшим органом управления

На сегодняшний день закрытое акционерное общество — достаточно популярная форма осуществления предпринимательской деятельности, но она менее распространена, чем ООО. Все дело в том, что экономическое и юридическое сопровождение ЗАО осложняется необходимостью регистрации эмиссии акций и последующим ведением реестра акционеров. Таким образом, создание и развитие закрытого акционерного общества требует, как правило, огромных финансовых затрат. Поэтому такая организационно-правовая форма как ЗАО чаще всего регистрируется для создания крупных предприятий с большим объемом капитала.

Прежде всего, давайте разберёмся, что таит в себе расшифровка ООО, ЗАО, ОАО. ООО — это общество, имеющее ограниченную ответственность, предприятия заканчивающееся на АО — акционерные общества, уставной капитал которых делится на некое число акций, а их владельцы, соответственно — акционеры. Они, в отличие от участников ООО, не несут никакой ответственности в отношении сообщества, риск их убытков строго ограничен стоимостью тех акций, что у них имеются на руках. Также ООО — это обычно небольшая фирма, деятельность которой охватывает небольшую отрасль малого предпринимательства, а акционерные общества — это уже прерогатива среднего или крупного бизнеса.

Его учредители — физическое или юридическое лицо, или же объединение лиц. Одна из их обязанностей — сформировать общий уставной капитал и разделить его меж собой на доли. Учредители не отвечают по обязательствам ООО, а риск убытков у каждого пропорционален его доле в уставном общем капитале.

Цель такого объединения — сугубо коммерческая, это получение прибыли от деятельности и распределение этих средств между собой. Все участники имеют право стратегически управлять коммерческой организацией. Право это реализуется в проведении регулярных собраний.

По своему желанию можно расширить свою компетенцию либо же передать часть своих прав другому участнику объединения. Также у каждого есть возможность продать свою долю и покинуть сообщество. Его долю обычно имеют право купить только участники данного ООО, в таких организациях не приветствуется передача долей третьим лицам.

What legal form is the best?

Both a representative office and a branch are separate permanent subdivisions (integral parts) of its parent company and are not separate legal entities.

A representative office is entitled to represent the interests of its parent company, including marketing and advertising, setting up contacts, public relations etc.

A branch may perform all function of a representative office as well as carry out commercial activities. Being a part of the parent company, a branch performs commercial activities on its behalf. In other words, all contracts are concluded by the branch exclusively on behalf of the parent company.

The disadvantage of a branch or a representative office is that the parent company is fully liable to Russian contractors and state authorities for all activities of the branch or a representative office.

If you plan to be commercially active in Russia, then the liability of the parent company shall be limited.

A Russian limited liability company (LLC) is a separate legal entity. It may be engaged in any legal activities. Just like in Europe, the shareholder’s of an LLC are liable with their shares only. The limited liability of the parent company as the shareholder of an LLC is the big advantage of an LLC compared to a branch or a representative office.

Your Limited Liability Company & Taxes

Is there anything worse than paying taxes?

Obviously, there are.

The question is meant in terms of running a business.

Maybe not getting paid is worse.

Or perhaps not having any clients at all.

But generally speaking, paying taxes sucks big time!

Oh, wait, I got it.

How about paying taxes you didn’t know you even had to pay!?

That’s much worse.

And it can happen to you if you’re not careful.

Of course, you already know that.

In this case, however, I’m talking about something else entirely.

I’m talking about the state business tax you aren’t planning to owe for your Single-Member LLC and even worse…

The penalties you’ll likely be paying.

Should I Form An LLC?

Forming your business as a limited liability company (LLC) helps:

• Protect you against lawsuits.
• Reduce paperwork compared to corporations and other legal entity types.
• Prevent your company from being taxed twice.
• Make your business appear more credible to customers and creditors.

A limited liability company (LLC) is just one of several business structures. Other common examples include:

• Corporations
• General Partnerships
• Sole Proprietorships

For most small business owners, a limited liability company offers the right mix of personal asset protection and simplicity.

Unlike sole proprietorships and general partnerships, LLCs can protect your personal assets if your business is sued. Unlike corporations, LLCs are relatively easy to form and maintain and are not subject to double taxation.

Advantages Of An LLC

LLCs offer these benefits to small businesses:

• Limited liability protection
• Pass-through taxation
• Simplicity
• Flexibility
• Tax options
• Increased credibility
• Access to business loans and credit

Limited Liability Protection

Provided there is no fraud or criminal behavior, the owners of an LLC are not personally responsible for the LLC’s debts or lawsuits. This is often referred to as personal asset protection.

Pass-Through Taxation

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 profits are only taxed once. This is known as pass-through taxation.

In a C corporation, profits are subject to «double taxation». This means profits are taxed before being distributed to owners and taxed again when owners report their share of profits on their individual tax returns.

Simplicity

Limited liability companies are relatively easy to form and maintain with little paperwork. Unlike C corporations, LLCs are not required to assign formal officer roles, hold annual meetings, or record company minutes and resolutions.

Flexibility

There are few restrictions on how you can structure the ownership and management of an LLC:

• Your LLC can be single-member or multi-member
• A Multi-Member LLC can be managed by its members, termed as member-managed.
• A Multi-Member LLC can be managed by a manager that is appointed by its members, termed as manager-managed.

Tax Options

A limited liability company can choose among three different ways of paying income tax. One popular option is to be taxed as an S corporation. Technically an S corp is a tax designation, not its own type of business entity. 

You can learn more about choosing the S corporation tax designation in our LLC vs S corp guide.

Increased Credibility

Forming your business as a limited liability company brings added credibility. An LLC is recognized as a more formal business structure than a sole proprietorship or partnership. Including LLC in your business name lets customers and partners know that you are a credible business.

Access To Business Loans

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.

If you have a women-owned business, discover the right financing opportunity by reading our list of the top loans for women entrepreneurs.

Disadvantages Of An LLC

LLCs offer many benefits but there are small disadvantages:

• Because LLCs are pass-through entities like a sole proprietorship, LLC owners are responsible for paying taxes on their share of LLC income, whether or not they are given a disbursement. This is why LLCs don’t attract investors like a corporation.
• All members must wait until the LLC sends out K-1 forms to complete their personal taxes. For this reason, most investors will not fund LLCs.

Recommended: Visit our LLC Taxes guide to learn more.

Why Choose an LLC Over a Sole Proprietorship?

Some business owners run their businesses as a sole proprietorship entity. However, sole proprietorships do not offer the same benefits as an LLC, such as pass-through taxation and asset protection.

If your business is sued, the creditors could go after your personal assets to satisfy any business debts, and plaintiffs in lawsuits against your business could likewise access your personal assets to satisfy any judgments.

This can not only affect your personal income for years to come, but it can even force individuals to dissolve their businesses completely. Forming an LLC can protect you from the reach of creditors and lawsuits since it provides you with personal liability protection.