REGISTERING A LIMITED LIABILITY COMPANY IN U.

S Abhishek Kumar 4TH semester School of law, Christ University, Bangalore A limited liability company (LLC) is an accepted business form in all U.S. states; it is an independent legal structure separate from their owners. And it separates ones personal assets with the business debts. It is taxed similarly to a sole proprietorship (if one owner) or a partnership (if multiple owner).it is governed by the LLC statutes, formation document and LLC operating agreements. The owners of an LLC are called members rather than partners or shareholders, the members are drawn upon an operating agreement. And there is no limit to no. owners. And there is no requirement to hold annual meetings or record minutes. There are certain demerits as well in having a LLC, as it cannot engage in corporate income splitting to lower tax liability and it cannot issue stocks as well. Certain steps should be followed in order to register a LLC Draft a business plan A business plan serves as a blueprint to all aspects of the business, including strengths, weaknesses, opportunities and threats. Also, it will help to understand market analysis, organization and management, and the funding required.

Choose a name for the business There can be variations in the name of LL.C but it is wise enough to add LLC in the name of the firm to send an indication as to the firm is registered and doesnt violate any trademark. Determine the members of the LLC It should be decided whether the company is a member managed or manager managed determining the members will heip in understanding their duties and liabilities. Submit the articles of organization form to the Secretary of State along with the appropriate filing fee. The articles contain such information as the name of the LLC, the names of the managers or members, and the name and address of the registered agent. There may be an annual, biennial, or other renewal fee thereafter as well as franchise taxes depending on the state you are forming your LLC in . In some states you will file a certificate of organization currently states like Iowa and Idaho require a Certificate of Organization to be filed, instead of Articles of Organization. Have a separate bank account Get an employer id for the LLC, even if you do not plan on hiring any employees, you should still obtain an Employer ID (Tax ID) for the LLC. Create an operating agreement for the LLC An operating agreements sets out all of the decisions about the business, including member responsibilities and duties, how profits and losses are distributed to the members, and the effect on the LLC if a member dies, leaves, or is asked to leave .And this is not filed with the state, instead it is kept in the office.

 File form 8832 entity classification election to be taxed as a corporation If you plan to file the LLC taxes as a sole proprietorship (one member) or partnership (more than one member), you do not need to file this form. If you want to file LLC taxes as a corporation, you will need to complete this form. A foreign person can form a corporation or LLC in the United States of America. In many states, one person can hold all corporate positions and titles, including director, president, secretary and treasurer. That person or persons need not be residents of the United States and can conduct business from outside of the United States. In some states, you may need to provide certain information about your company's owners prior to incorporating or forming your business.