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LLC: The essentials

Updated November 21, 2022
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Despite being a relatively new option for companies looking to more formally organize, the limited liability company (usually abbreviated “LLC”) is now one of the most popular business structures among smaller organizations. Organizing as an LLC generally grants the owners of the company a good bit of freedom in regards to regulation. It still provides personal asset protection, which means that the personal assets of the owner of an LLC cannot be collected to fulfill the debts of the business.

Pros and cons

It isn’t a surprise that the LLC structure is gaining popularity. As mentioned above, organizing as an LLC provides one huge benefit: personal asset protection. If your business doesn’t work out, it doesn’t have to mean your financial ruin. An owner of an LLC is protected from having their private assets ceased in order to pay the business’s debts. This does come with a caveat: An LLC only retains this protection as long as the owners of the business are in compliance with certain regulations.

As it’s a relatively new structure (as compared to a C corporation, for instance), there is little legal precedent when it comes to cases involving an LLC. Also, the freedom that ownership in an LLC provides is limited by the difficulty in transferring ownership of the business.

Tax implications

The tax benefits of owning an LLCs stem from how the government classifies the business’s profit. Owners are not taxed at a corporate level, they only pay personal income taxes based on the profits and losses of the company. This is commonly referred to as “pass-through” taxation.

Quick process overview

The first set of paperwork required to successfully form as an LLC is called the Articles of Incorporation (which is sometimes referred to as a Certificate of Incorporation). These documents typically contain basic information about the company, its owners, and its directors. Depending on the state in which you are located, there may also be some state-level fees or taxes that must be filed and paid.

Continuing requirements

After your initial filing is complete, there are a few ongoing requirements that you, as the owner of an LLC, must comply with. These requirements are much less stringent than those placed on an S corporation or C corporation, but they still must be completed. Each state has different specific requirements, but these generally include special fees, yearly taxes, and the filing of an annual report.

Swyft can help!

Many business owners are choosing to organize as an LLC. Does it look like a good option for you? The experienced professionals at Swyft can get your up and running ASAP.  Contact us today!

Originally published on October 25, 2022, and last edited on November 21, 2022.

Frequently Asked Questions

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How much does it cost to form a Corporation or LLC?

Swyft Filings charges only $49 + state filing fees to incorporate your business. Filing fees vary from state to state. If you have a question about a specific state, feel free to email or contact us at 877-777-0450.

After completing my order, will I have to pay additional fees to your company?

No. For business filings, you paid the total price for your order at the time you placed it. 

However, if you signed up for the Swyft Filings Registered Agent Service, you will be charged for this service when the state grants your company a Certificate of Formation. This recurring fee will be automatically charged to your account for each period the service is active unless you change your Registered Agent with the State or dissolve your company.

When will my order be processed?

Orders are processed as they are received. However, clients that select Express Processing or Same Day Processing will have their orders processed before Standard Processing orders.

How long does the incorporation process take?

Incorporation times vary from state to state. Feel free to contact us by email or at 877-777-0450 for information on specific state processing times.

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