Why Choose an LLC?
Discover the key benefits and drawbacks of forming an LLC.
$450
+ State Fee
LLC Package ($450) + State Fee
A Limited Liability Company (LLC) combines the tax benefits of a Sole Proprietorship with the legal protection of a Corporation. It protects owners’ personal assets from business debts and legal issues. LLCs are flexible and can have various types of members, making them a popular choice for many businesses.
The key advantages of an LLC include personal asset protection, pass-through taxation, operational flexibility, and relatively simple maintenance.
What does this package include?
Operating Agreement: A legal document that outlines the LLC’s ownership, operations, and financial rules.
Organizational Minutes: Written records of decisions made during the LLC’s first meeting.
IRS Document to Obtain the EIN: The Employer Identification Number (EIN) for tax purposes, needed to open accounts and hire employees. The format of an EIN is XX-XXXXXXX
Articles of Organization: Legal papers filed with the state to officially create the LLC, detailing its structure and purpose.
simplified tax benefits for your LLC
Ongoing Management & Taxation
Ongoing Management
LLCs have a flexible management structure, which means members can choose to manage the company themselves or appoint managers to run the day-to-day operations. This flexibility allows an LLC to adapt to the preferences and expertise of its members. In other words, if you want to run your LLC entirely on your own, you can. But if you want to hire a team of managers to handle most of the daily work, you can do that, too.
Taxation
When tax season rolls around, LLCs don't have to pay corporate taxes. Instead, they're subject to pass-thru-taxation, which means their profits are simply "passed through" to their owners' personal income tax returns. Translation? No costly double taxation and less complex paperwork. And if you want to save even more money on taxes as your business grows, you can consider having your LLC taxed as an S-Corp.
Check Our Fees by State
States Covered & Fees Per State
Weighing Options
LLC Advantages and Disadvantages
Pro #1: Limited Liability
One of the most important advantages of having an LLC is the limited liability protection it offers. In an LLC, members’ personal assets are separate from the company’s debts, reducing the risk of personal financial ruin in the event of business-related issues.
Pro #2: Flexibility
While corporations are bound to a rigid management structure, LLCs are generally free to have just about any management structure their owners’ want.
Pro #3: Relatively Simple Upkeep
On the flip side, although your state’s LLC requirements and fees may not be ideal, maintaining an LLC is generally much simpler than running a corporation. There are far fewer paperwork, oversight, and administrative tasks involved. And if you’ve formed your LLC with Bizee, our lifetime company alerts mean you’ll always be notified of upcoming deadlines.
Pro #4: Pass-Through Taxation
As we explained earlier, pass-through taxation is an especially beneficial part of owning an LLC. With it, you won’t have to file separate tax returns for your business — instead, your business earnings will be reflected on your personal tax return.
Drawbacks
Con #1: Self-Employment Tax
When you own an LLC, you must pay self-employment tax, which has a rate of 15.3%. If you’re an employee working for an employer, on the other hand, you and your employer split the cost of self-employment tax.
Con #2: State Requirements & Fees
As we explained earlier, pass-through taxation is an especially beneficial part of owning an LLC. With it, you won’t have to file separate tax returns for your business — instead, your business earnings will be reflected on your personal tax return.
CLIENT
Experiences & Testimonials
"In terms of timelines, they delivered my LLC documentation quicker than I expected, and everything was in perfect order. This level of efficiency speaks to their professionalism and commitment to customer satisfaction."
"Their pricing structure was refreshing. There were no unexpected fees, and the overall pricing was very reasonable considering the quality of service provided."
"I highly recommend EntityWise Solutions for anyone considering starting a corporation. Their exceptional service quality, attention to detail, and dedicated support made this experience remarkably easy and stress-free. I feel confident and prepared to take the next steps in my business journey thanks to their assistance!"
"I cannot recommend EntityWise Solutions highly enough! From the moment I engaged their services, I knew I was in good hands. Their team is professional, knowledgeable, and truly dedicated to helping small businesses thrive. They took the time to understand my specific needs and offered tailored solutions that made a real difference."
"Their communication is also top-notch. They kept me informed every step of the way, and I always felt like a priority. Whenever I had questions or needed clarification, they were quick to respond with clear, helpful information."