Limited Liability Company

What is an LLC?

A Limited Liability Company (LLC) is one of the most popular business structures. That’s, in large part, thanks to the protection, credibility, and flexibility it can provide to businesses like yours.

What are the advantages of an LLC?

Providing limited liability protection is the primary advantage of forming an LLC, but the benefits don’t stop there.

Increased protection

LLC formation removes your personal responsibility for business liabilities.

Credible path to growth

With a recognized structure in place, your business gains an added level of credibility.

Ease of operation

Generally, LLCs require less operational formalities compared to corporate business structures.

LLC tax implications for your business:

LLC income is typically reported on a business owner’s individual tax return. However, the number of owners an LLC has along with other factors ultimately determine how your LLC is taxed and how taxes must be filed. In fact, your LLC has the flexibility to be taxed as either a sole proprietorship, partnership, or corporation at the federal level.

Other considerations

Can have owners who are not U.S. citizens or residents

Most states will require an annual report filing

Quarterly tax payments are generally also required

Other formalities and requirements may be necessary depending on your state

Unable to issue stock or become publicly traded

Start forming your business in minutes.

icon of step one establishing a business

Tell us about your business.

Enter your business info, pick your business type, and fill out our forms in as little as 10 minutes.

icon of step two establishing a business

Let us do the work.

Get back to business as we work with the state to file your paperwork with 100% satisfaction guaranteed.

icon of step three establishing a business

Get excited!

You’re official! We’ll provide you with your business documents while you change your title to CEO.

Not sure if an LLC is the right business structure for you?

Answer a few quick questions, and our Help Me Choose tool can help you move closer to finding the right business structure fit.

Ready to learn more about business services?

Let’s start saving you time and money with affordable, year-round expertise.

Looks like something went wrong on our end, and your info wasn’t submitted. Please try again later. Thank you for the continued interest. It looks like you are already on our list! Invalid Email Entered ! Please Enter a Valid Email Address.
Block Advisors logo

Great to hear from you.

Thanks for sending us your email address. Be on the lookout for more info on how Block Advisors can help with your small business needs.

Small business tax preparation 101: What to bring to tax appointments

Beneficial Ownership Report Guide: Requirements and Meaning

How is an LLC taxed: What are your options?

Limited liability company FAQs

An LLC (or limited liability company) is popular among business owners because of the versatility that often comes with the LLC business structure. LLC owners typically have less formalities imposed on their business than other entity structures. If the LLC does not make the S Corp election, default tax rules mean LLC members must pay self-employment tax. If the LLC makes the S Corp election, working LLC members are treated as employees and their wages are subject to employment taxes. The LLC business structure is often recommended for smaller organizations.

Check out this article to learn how an LLC is taxed.

Often a sole proprietor means someone who operates a business but reports the income on their individual taxes and doesn’t have a separate legal entity. LLCs are a legal entity that can provide personal liability protection, even if still owned by a single person. In other words, it can protect the owner’s personal assets from certain business debts or liabilities. Sole proprietors and single member LLCs are taxed in the same way, unless another tax structure (like an S Corp) is elected.

Check out this article to learn more about how a sole proprietor is taxed.
Check out this article to learn how an LLC is taxed.

Filing for an LLC can be very simple. Depending on the state you file in, you just need to file the appropriate formation documents with the Secretary of State’s office in the state. To do this with Block Advisors, you’ll need to choose a business name. You’ll also need an EIN, and to obtain that, you’ll need your social security number, individual taxpayer ID, or EIN of the responsible party, the business name, and business address. You may also have an operating agreement, especially if you have more than one LLC member, which documents all the rules and responsibilities of the members.

Once the LLC is registered and you have your EIN, there are some ongoing business formalities you’ll need to take care of, and those vary by state. For example, you’ll want to make sure you separate your business and personal financials if you haven’t already. That means separate bank accounts at minimum. Your tax filing requirements will depend on how you elect to structure your business (either as a sole proprietor, S Corp, or partnership).

An EIN is an employer identification number and is needed in certain situations. For example, partnerships and corporations are required to have an EIN. Sole proprietorships and LLCs that have employees, pay excise tax, or contribute to a retirement plan also need an EIN. EINs are included with all of our packages.

Block Advisors pricing for business formation starts at $149, which includes state formation, basic documentation, and an EIN. State filing fees are charged separately in addition to our fees and vary from state to state. If you have a question about a specific state, feel free to contact us at 877-472-1095. In addition, there will likely be other costs associated with starting your business, such as opening bank accounts, additional accounting or tax preparation fees, insurance, or obtaining a business license.

We’ve got the expert insights your business needs.

Check out our resource center to learn more about taking your business from self-employed to an LLC, C Corp, or S Corp.

Why is choosing the right business entity important?

The type of business you choose is critical as it affects everything from the taxes you pay to different liabilities.

LLC vs. S Corp: What tax implications are there for my business?

As you start a new business, you must decide on a legal business entity. While many options exist, many business owners debate LLC vs. S Corp.

LLC vs. C Corp: What’s the difference for my taxes?

As you contemplate what to register your business under, you might come across two options: An LLC and a C Corp. We can help you understand both.