A limited liability company (LLC) is a business entity unique to the United States in that taxation passes on to the individual, like a partnership or sole proprietorship, but enjoys the limited liability, or protections, of a corporation.
Each state has different rules and regulations governing aspects like cost, naming requirements, member requirements, and so on. Be sure you understand your state’s requirements to ensure the proper formation of your business entity.
Limited liability companies are comprised of several members and may include other LLCs, corporations, and partnerships; or they can be formed with a single member, sometimes called a disregarded entity.
The benefit of establishing an LLC is protection. Members of a limited liability company are not responsible for business debts and other liabilities. For example, creditors are not able to pursue the personal assets of members, or the individual owner, of an LLC.
A limited liability company must obtain what is known as an Employer Identification Number (EIN), also called a Federal Tax ID number.
The Internal Revenue Service (IRS) issues EINs/Tax IDs to distinguish the following businesses entities: sole proprietors, corporations, limited liability companies, and partnerships.
Your LLC’s EIN/Tax ID is a nine-digit number is specific to your company. Once you receive your Tax ID Number, you’ll be able to establish a bank account in the name of the business, apply for a credit card, or business permits.
Don’t wait to obtain this important Employer Identification Number and businesses essential. Our online forms are quick to read and easy to navigate, and we work hard to get your Tax ID number to you quickly and professionally.
If you’re operating as a limited liability company, please apply for a federal Tax ID number today.