Frequently asked questions
What is a Limited Liability Company (LLC)?
A limited liability company, or LLC, is a business entity with both the characteristics of a corporation and a partnership. Like a corporation, the owners of an LLC are not personally liable for business debts. Like a sole proprietorship or partnership, an LLC has operating flexibility and is a pass-through entity for tax purposes. This means the LLC's profits are passed through and taxable to the owners of the LLC.
What type of documents are required to create an LLC?
In general, Articles of Organization or Formation, an operating agreement, and a filing for an EIN with the IRS are needed. ResourceMe provides these and other documents to make your transition easier.
Will I have to hold meetings for my LLC?
Short answer - No. One of the benefits of having an LLC is fewer formalities. However, if your Operating Agreement specifies that you should hold meetings, you should hold meetings. Other than that, it's not mandatory, but ResourceMe is happy to help you modify your Operating Agreement to meet your unique specifications.
Do I have to have a partner to form an LLC?
No, you don't have to have a partner to form an LLC. You can have a single-member LLC or a multi-member LLC if you have one or more partners you'd like to partner with.
How much does it cost to register an LLC?
Each state has a standard state registration fee ranging between *$50 and $850. Also, most states require an annual fee as well.
What is a Registered Agent?
All states require that LLCs have a registered agent on file with the Secretary of State. The agent may be an individual or company with a physical address located in the state of incorporation. A registered agent's role is to receive all communications as sent by the government to the business. Said agent must be 18 or older.
Can I be my own Registered Agent?
In general, you can be your own registered agent if you live in the state that you're registering your business in and are at least 18 years old at the time of filing.
How are LLCs taxed?
LLCs are typically taxed on a pass-through basis, much like general partnerships. As pass-through entities, LLCs' profits and losses are passed on to the individual owners and are reflected on the owner's personal income tax returns. Alternatively, LLCs' may elect to be taxed as S corporations to reduce the self-employment taxes imposed on the owners potentially.
It should also be noted that several states impose a franchise tax, ranging from $100 to $800, on LLCs. These taxes are typically due annually and are required to ensure your business remains in compliance with the state. Failure to pay the imposed franchise tax can lead to the forfeiture of your right to conduct business in your state.
How long does the process take?
The process usually takes between 7 to 10 business days to complete. However, this approximation, like the varied fee base, is state dependant. Should the window for completion in your state prove insufficient for your business needs, most states offer expedited processing for an additional fee or fees.
Do you do consultations?
If you’re interested in a consultation, please email info@resourcemellc.com
