A limited liability company (abbreviation: LLC, LC) is a legal form widespread in the USA with its own legal personality. It is created by filing a articles of association (articles of organization) with the Secretary of State of the U.S. State under whose law the LLC is established.
The minimum content of the social contract varies depending on the US state. In addition, the shareholders regulate the details of the management and representation of the company in the so-called operating agreement (Rules of Procedure); unless otherwise provided by contract, all shareholders are entitled to manage and represent. The partners (members) are not personally liable for the liabilities of the LLC. In many US states, single-member LLC (SMLLC) is also allowed. For US income tax purposes, an LLC is treated – depending on the exercise of voting rights and the number of members – as a corporation, a partnership or as a tax-transparent (disregarded entity). The election is exercised by means of the form Form 8832. The death of a shareholder leads to the dissolution of the company, unless otherwise provided in the social contract.
A limited liability company (LLC) is a legally registered business entity limited by shares. Limited liability means that all shareholders are responsible for all debts incurred by the company. The liability of the business partner is limited to the amount that he invested in the company.
In most cases, an LLC is created in which two or more companiesindividuals come together and form a partnership. That is, you are allowed to run the business as a co-owner.
How to create an LLC (Limited Liability Company)
The steps are straightforward and unchallenged. Note that stakeholder consultation is paramount throughout the registration process.
Choose a company name
First and foremost, you need to do a name search. The reason for this is that the name of your LLC should not resemble that of an existing company. It is advisable to use a simple and unique name.
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Is an LLC a good idea?
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