Register your LLC in USA online

What an LLC gives you

A limited liability company is a legal entity separate from its owners. If it is set up and run properly, the owners are generally not personally liable for the company's debts. It is also flexible: the owners can run it themselves, there are no required meetings, and for tax purposes it is normally either ignored (one owner) or treated as a partnership (two or more).

What an LLC does not protect you from

• Your own wrongdoing or negligence.
• Debts you personally guarantee, which banks often ask for.
• Claims where a court decides the company was only a front. Mixing personal and business money is the usual cause.

What is filed to form one

The key document is the articles of organization, called a certificate of formation in some states. It lists the LLC's name, the registered agent and address, and sometimes the managers. The state reviews it and, if the name is available, approves it. You then keep an operating agreement, which sets out who owns what and how decisions are made. Most states do not file this document, but banks and other owners rely on it.

What an LLC costs to keep

• The state filing fee at formation.
• A registered agent every year.
• The state's annual report or annual tax. See annual reports.
• Tax filings with the IRS and, where applicable, the state.

The formation fee is the smaller number over time. Compare the yearly cost between states before you decide.

Single-member or multi-member

A one-owner LLC is the simplest. Adding a second owner turns it into a partnership for tax purposes, with its own return and a share of profit reported to each owner. Decide the ownership split in writing before the first dollar comes in.

After the state approves it

1. Get an EIN.
2. Open a business bank account and keep money separate.
3. Sign the operating agreement.
4. Put the annual report date in a calendar.

If you live outside the US, the steps are the same, with a few extra tax filings. See LLC formation for non-residents.