What is the Limited Liability Company?

The Limited Liability Company is one of the entity types which is registered with the secretary of state to transact business. An LLC has the following characteristics.

1. The limited liability company is registered with the secretary of state.
2. A limited liability company can absorb unlimited members or the managers.
3. A US resident and Non US resident can form a limited liability company.
4. A limited liability company is a pass through entity for the tax purpose and profit and loss transfers to the income tax to report.
5. A limited liability company has a flexibility to use as a corporation, S Corporation or a limited liability company.
6. An LLC is managed by the operating agreement. The operating agreement is a document which is used by the management and it does not submit along with the article of organization to create an LLC.

How to register a limited liability company?

An article of organization or formation is filed with the following information:

• Name of the LLC
• Name of all the members and the managers
• Registered agent address
• Percentage of each owner of the company
• Business description
• Term of the LLC
• Signature of the organizer
• Generally, most states register a limited liability company same day.

Limited Liability Company yearly maintenance:

• An LLC is maintained in most states by filing an annual report, biennial statement, franchise report or the statement of information as per the secretary of the state requirement.
• Income tax return is filed by each member of the LLC.
• An LLC name is confirmed by the secretary of state prior to filing the article of organization to register a business name as an LLC.
• Some states require publications as well, to establish an LLC and the state of New York is one of the states, where a legal notice is required to publish in the newspapers. The charges of the new paper are based on the county.