Here are some reasons why people set up an LLC:
- To protect assets — by creating an LLC, you keep your personal belongings separate from your business.
- Simplicity and flexibility — LLCs are easier to manage compared to other types of businesses. They have fewer rules and formalities, making it simpler for you to run your business.
- Professional reputation — having an LLC gives your business a more professional and trustworthy image. This can attract more customers and partners who view your business as legitimate and reliable.
- Planning for the future — with an LLC, it's easier to plan for the future of your business. You can transfer ownership or bring in new members smoothly when you need to make changes.
Is an LLC the same as an Inc. (corporation)?
Both LLCs and corporations protect your personal assets from business liabilities, but they have some key differences, including:
- How they're owned — LLCs have one or more individual members, but corporations have shareholders.
- How they're maintained — LLCs generally have less formal record-keeping and reporting requirements.
- How they're taxed — LLC profits usually pass through to members before taxes, while profits for some corporations are taxed at the company level first.
Where can I learn more about business formation options?
Read our article on this topic: Differences Between an LLC & CORP for Small Businesses.
Where can I learn more about everything involved in creating an LLC?
Read our article on this topic: Steps to Start an LLC or Corporation.
Can I register an LLC in the US if I live in another country?
All states allow a foreign citizen to form a company in their jurisdiction, although they can differ in their requirements. Generally, you'll need the same paperwork requirements as US citizens. The two main things you'll need to get started are an:
- Individual Taxpayer Identification Number (ITIN) — this will be needed for you to apply for the Employer Identification Number (EIN).
- Registered Agent — your business address can be outside the US, but you must have a Registered Agent within the state where you form your business to accept your formal documents. Your company can't be listed as its own Registered Agent.
These are some other criteria for you to be aware of:
- Our partner Tailor Brands can't obtain your EIN online with the IRS if you don't have a Social Security Number, but we can prepare the SS4 paperwork for you to fax to the IRS. In this case you would need to liaise with the IRS directly, via phone or mail.
- There are a few countries that are ineligible to form a company in the US — such as those involved in an OFAC sanction process, such as North Korea and Iran.
What if I'm located outside the US, am I eligible for this offer?
So long as you are deemed eligible to register an LLC, and successfully complete the registration process, you are eligible.