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.

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

You can form a corporation or LLC with our help for as little as $0, plus state filing fees for incorporation. Filing fees vary depending on the state you incorporate in. For more information on specific states, check out our state guides on the Swyft Resource Center. You can also email us with specific questions or contact us at 877-777-0450.

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Swyft Filings accepts payment through Visa, MasterCard, American Express, PayPal, checks, and money orders. You can send any questions about payment to our email address or contact us at 877-777-0450.

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It depends on what you ordered. If all you did was file your corporation or LLC, the price you paid when ordering is all you pay. You will have no further fees after that.

However, if you signed up for the Swyft Filings Registered Agent Service, you will be charged its initial fee three days after you place your order. From then on, you will be charged according to the terms of your subscription until you change your registered agent with the state or dissolve your company. If you change your agent or dissolve your company on your own, let us know so we can discontinue billing.

Other potential subscription-based options include SnapMailbox, 360 Legal Forms, and ComplianceGuard. If you opt for SnapMailbox or 360 Legal Forms, you will be charged a monthly fee after their respective 30-day free trials end. ComplianceGuard has an annual fee after a 14-day free trial. All three of these services are completely optional.

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