What Is an LLC in the U.S.?
June 20, 2022
There are multiple commercial structures operating in the U.S. Each of these structures defines the purpose of a legally stablished company within the country. They change according to a company's commercial goals, along with the partners or shareholders that are part of it. A Limited Liability Company (LLC) is one of the structures in high demand when it comes to company creations in the U.S. Being experts in the field, we will tell you more about everything that goes into establishing a LLC in the U.S.
What Is an LLC?
According to the Internal Revenue Service (IRS)
, an LLC is a company with a business structure that's limited according to state mandates. Each state has its own set of regulations, and they must be assessed in advance before creating an LLC. Owners operating within this business structure are known as members. Depending on the state where the company is founded, these members can include individuals, other LLC businesses, anonymous companies, and even foreign companies in their partnership since there are no limitations pertaining to the number of members a company can have.
The LLCs have the most flexible structure when compared to all other business structures operating in the country. As such, this structure is a mix between a corporation and a limited partnership. That combination allows one or more shareholders or partnership members to handle the company's management without taking personal responsibility for the impositions that the company's position demands as an American business. The earnings are transferred to each member, who, in turn, list these earnings as personal income on their individual tax returns.
Advantages of an LLC
LLC represents an attractive commercial structure for those who want to create a company in the U.S. Some of the advantages of this structure:
- Limited Responsibility: As the name suggests, LLCs entail a partnership with limited responsibility since their members are not held accountable personally in case of debt or liability. If the company is charged with a lawsuit, members will not become directly affected by it; it would only affect the company's shares and goods.
- No Income Tax Payments: A LLC has no tax obligations pertaining to income taxes because it doesn't withhold said earnings; it goes directly to the owners or members. The reason for this is that 100% of earnings and utilities are split between members, so they are the ones responsible of filing the payments as part of the individual taxes.
- Flexible Corporate Management: With a LLC structure, there's no need to secure a board of directors to oversee the company's shares and resources. The members themselves have power and control over the company's administration, operations, and inner structure.
- You Don't Need To Be a Resident To Open an LLC: LLCs provide an appealing business model for investors living abroad who wish to open a business in the United States. All you need is the physical address of the authorized agent or the public accounting office you've hired for the company's creation.
How Does a LLC Work in the U.S.?
An LLC can work in one of two ways: as a one-person company where there's a single owner, or through the member's shared management where members have decision-making power on all operative aspects. LLCs can be operated from any part of the world via the authorized agent's logistic support or by hiring an accounting service to handle the company's management, accounting, and tax-related matters.
As these companies represent a partnership with limited responsibility, it's up to the members administration to split all the company's earnings equally. On a related note, LLCs come with an expiration date; each time a member dies, the company becomes compromised, and the partnership is usually ruled as dissolved.
Open a LLC With the Help of Our Business Consultation Services
United Tax & Accounting Group offers a team of authorized agents who are eager to help you with the best business consultation services so you can open an LLC in the U.S. We also possess the latest technology and an unmatched sense of professionalism to assist you through the creation of a company, including all the negotiations entailed in partnership merging. We effectively help you make your way in the American market.
As a company with more than a decade of providing business accounting services, we also offer our tax preparation services to help you keep up with your tax payments (individual income taxes, state taxes, local taxes, commercial permit taxes, etc.), maximizing your deductions and minimizing your tax obligations.
You can count on the assistance of our public accountant office to find the most specialized professional team with credentials from the Florida College of Accountants.
Let us by your LLC's accounting agents in the U.S.! Call (786) 431-5576
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