You do not have to draft and upload your own articles, nor are drafted articles allowed to be uploaded when using this filing option. The registered agent will be named in each of your filings as required by statute. Banks in the US require documents of small business registration before they will allow you to open up a business bank account. It’s essential that ecommerce entrepreneurs know how to register an online business if they are looking to open a business bank account. Expect to pay $50-$150 for a service that can help you register your LLC.

Read more about USA company formation here. Income tax depends on your company type (LLC or corporation), state(s) of registration, number and domicile of partners, etc. The LLC business structure is created by state law and allows business owners (called “members”) to protect their personal assets and limit their legal liability against activities of the business. Most states require LLCs to file reports yearly or every other year, with or without a filing fee. Due dates vary from state to state, but a formation service can notify you in advance of your filing date so you don’t face penalties for forgetting your annual report. Some states may charge a late fee or subject your LLC to automatic dissolution for missing an annual report.

Do I Need to Register My Business?

All members share in the day to day decision-making of the business. A manager-managed LLC has designated members or outside managers responsible for decision-making. Articles of organization often ask organizers to indicate whether their LLC will be member- or manager-managed. Forming an LLC can be a strategic move for many entrepreneurs, as it offers distinct advantages in terms of flexibility and protection. However, it also comes with certain limitations and requirements. Operating agreements should outline duties and responsibilities of members, so there is no confusion who is responsible for what. You may abbreviate “Limited” to “Ltd.” and “Company” to “Co.” If you have a professional LLC, series LLC or L3C, your indicator will need to reflect what type of LLC you have.

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However, keep in mind that each state has its own procedures and fees for registration. Read more about USA company formation here. This means that paperwork, costs, and complexity can multiply quickly. In many cases, business owners simply apply for a federal tax ID, commonly referred to as an employee identification number (EIN) and the process is complete.

After your Corporation or LLC has been filed, there are some other tasks you may want to do depending on your requirements and the purposes of your US company. Processing times will vary between states based on their work backlog. Foreign citizens have to wait for at least 30 days to obtain an EIN in most cases. When you need to obtain a Tax ID, and the directors or owners are non-citizens, it must be filed with a special IRS unit. If you opt to set up an LLC, then yes, your foreign business can own the US company. This is done by appointing your foreign company as the managing member instead of an individual person.

What’s more there are others too, such as B-corporations and S-corporations. The regulation of LLCs is different from one state to the next, but these companies do not pay taxes on their profits in the same way as a sole proprietor would, for example. Instead, profit and loss flow through to the LLC members, who individually report them on their IRS returns. You’ll need to learn how to navigate the US tax system, how to open a bank account, and how to obtain a US mailing address, to name but a few of the obstacles you have in front of you.

In the absence of an operating agreement, state law will govern how your LLC operates. You’ll probably have to pay a filing fee when you submit the articles. While state laws might vary, you can generally follow these steps to start an LLC. For information on how to set up an LLC in your state, see our 50-state guide to forming an LLC.