Choose the jurisdiction which best suits your needs
LLC – Limited Liability Company
Procedures to incorporate
US Business Structure
When you start a business, you are responsible for choosing a business structure. One structure you can select is a limited liability company, or LLC. Unlike some other business structures, you can form an LLC in any state, regardless of your physical business presence. With so many states to choose from, it can be difficult to determine where to establish an LLC.
A limited liability company (LLC) is a business structure in the US that protects its owners from personal responsibility for its debts or liabilities. Limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship.
Members and Managers
An LLC structure is the simplest form of legal business structure for business operations. In this LLC setup, the owner (Member) would designate persons as officers and directors of the firm (Managers). An LLC acts in a way that offers advantages to a company for taxes, profits and losses for its owners. LLCs can either be (i) Single-member; or (ii) Multi-member.
Owners of an LLC have financial and legal protection similar to corporations without double taxation. Plus, owners are not responsible for business debts. If the business owes money and can’t pay, only their business assets are at risk.
In certain US states (for example, Texas), businesses that provide professional services requiring a state professional license, such as legal or medical services, may not be allowed to form an LLC but may be required to form a similar entity called a professional limited liability company (PLLC).
The owner of beneficial rights in an LLC is known as a “member”, rather than a “shareholder”. Additionally, ownership in an LLC is represented by a “membership interest” or an “LLC interest” (sometimes measured in “membership units” or just “units” and at other times simply stated only as percentages), rather than represented by “shares of stock” or just “shares” (with ownership measured by the number of shares held by each shareholder). Similarly, when issued in physical rather than electronic form, a document evidencing ownership rights in an LLC is called a “Membership Certificate” rather than a “Stock Certificate”.
US LLC Tax Advantages
Pass-through income taxation
Although LLCs and corporations both possess some analogous features, the basic terminology commonly associated with each type of legal entity, at least within the United States, is sometimes different. When an LLC is formed, it is said to be “organized”, not “incorporated” or “chartered” and its founding document is likewise known as its “articles of organization”, instead of its “articles of incorporation” or its “corporate charter”. Internal operations of an LLC are further governed by its “Operating Agreement”, rather than its “Bylaws”.
Start your Business LLC
Each state has different laws for LLCs. Some states are stricter, while others are more lenient. And states might offer financial advantages and other perks for LLC formation.
As LLCs are pass-through entities, the owners of the LLC will pay the flat Colorado income tax rate of 4,63% on the profits. This is different from corporation as it avoids double taxation because the LLC and the owners are considered a single legal entity. However, for a Colorado LLC where Members and Managers are not resident in Colorado, and incomes are generated outside US, the Colorado LLC will be full tax exempt. Colorado LLCs must pay a $10 only as periodic report fee each year. You can use your LLC in Colorado to own personal property and real property (land, buildings, houses, vehicles, etc.), form and enter into contracts, open and hold bank accounts, etc.
Besides all its LLC tax and liability advantages, Colorado is a good place to start a business because it’s a destination where people want to live. We have an available labor force that can meet a variety of business needs, with different education levels, different ages and different levels of experience.
Packages and Prices
The cheapest option – accountancy support, free business consultant and much more.
A special package that includes a Business Company plus fully functioning bank.
Includes all services of Business Package plus full Nominee Services, Director and Shareholder.
Which State to form your LLC
You can form an LLC in any state regardless of where you are based; however, it likely makes most sense to form an LLC in the state where you live. Many businesses form LLCs across multiple states, but you must be aware of each state's requirements for establishing and maintaining an LLC.
US Tax Identification Number
EIN – Employer Identification Number
The SS4 is the IRS form required to obtain an EIN (Employer Identification Number, frequently called a Tax ID number). The EIN/Tax ID number can be thought of as a Social Security Number for your business. It is usually required to open a bank account in the name of the business and to properly pay and account for any wage/payroll employees of your company.
Our Firm will obtain your federal EIN electronically and have it back to you via email within one business day. Because an EIN is a federal tax code for business entities, a new EIN is generally not required when a sole proprietor is moving to another state.
How can we help you?
Should you have any question, our Business Development Managers team will be ready to guide and assist you!