Setting Up a LLC is Possible Anywhere in the 50 States

2007-03-08 10:33:40

( Business )



Factors to consider in setting up a llc

The factors you have to consider in setting up a llc are: company location; the difference between the cost of setting up the company in the home state and the cost of setting it up in another state and consequently getting the company qualified to operate in the home state and; the existing corporate laws as well as the state’s judicial system.

Company size

If you have a big corporation, you have the option to set up llc nevada, incorporate in delaware or florida or in the state where you are currently doing business. However, if you have a small company, it is better to set up an llc in the state where your business is presently located. Your corporation which has been registered in another state and consequently qualified to operate in the home state is subject to annual fees and applicable taxes including corporate laws of both the incorporating state and the home state.

Requirements in setting up an llc

The first thing to do in setting up a llc is to file the articles of incorporation, (called charter or certificate of incorporation in some states), with the state agency concerned and at the same time pay the corresponding fees. After the articles of incorporation have been accepted by the specific state, you have to hold an organizational meeting to formulate your manual of operations. When you are ready to start your business, you have to obtain an EIN or federal employer identification number which you will need for bank transactions and for taxation purposes. You can apply for an EIN by accomplishing form SS-4 of the IRS.

You will also need the services of a “registered agent” in setting up a llc. He must have a valid home address in the incorporating state where he can be reached during office hours to receive and forward legal documents, tax forms and other reports.

You don’t need a lawyer, however, to be able to start llc incorporation although you are not prevented from getting one to assist you every step of the way.

Features of an llc incorporation

An llc has no restrictions in the ownership of a subsidiary; in the number of members and; it is flexible in terms of income allocation to its members.


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