The first question is what is LLC?
A Limited Liability Company (LLC) is a business structure that offers limited liability protection and pass-through taxation. As with corporations, the LLC legally exists as a separate entity from its owners. Therefore, owners cannot typically be held personally responsible for business debts and liabilities.
Advantages of LLC
There are several advantages of LLC. Here some of the basic advantages are given in the following.
- Personal Liability Protection. One of the primary and basic benefits of forming an LLC is that it separates your personal assets from the business.
- Inexpensive and easy to form. LLC is easy to form than other companies or corporations. Not time-consuming and having low-cost.
- Flexible taxation: there is flexibility in the formation of an LLC. We are flexible because we can choose a state where the taxation ratio is relatively low. In that state, we make LLCs where we have not given a large portion of profit in taxes.
- Ownership and management flexibility: It is a very beneficial point of LLC that we can handle it from only one person. And we haven’t need a team. Just we can create it personally from anywhere any time and from any country throughout the world. We can easily manage it.
- Appropriate for individuals. It is same as the point 4, it is appropriate for individuals. Do have not hard and fast rules.
How create LLC in the USA from Pakistan?
First of all, we need to check two things. Before going to start the creation of an LLC we need to check the mentioned two things.
- Income Tax: The first thing to keep in mind at the time of creation LLC is to check out, that what the percentage of income tax in that state is. For example, we are going to make LLC in Texas. Our first step is that we will check income take tax in Texas. There is no individual income tax in Texas. And Texas does not have any corporate income tax.
- Sale Tax: The second step is to check out the sale tax of the state where you want to create your LLC. I am going to check it through Google by searching “sale tax in Texas”. The result shows that there is only a 6.25 percent off sale tax in this state. Similarly, we can check the other states same as Texas. And we will find the low sale tax states.
The requirement for LLC step by step
The main steps which are required during the creation of an LLC in the USA are the following.
Step First: To start the creation of an LLC we need to check out the unique name. For the unique name selection, we need to go to the state website.
On the given website we check entities through different methods.
- From Tax ID
- Entity Name
- File number
We don’t have a tax id and file number. Then we search for the unique name by entity name. Here we can confirm that is there is another LLC registered or not on the same name. If there is no LLC registered on the same then we go for the next step.
Step 2 Unique Address:
The second step is about getting the unique address. A question is how to get a unique address. For the unique address, we use two techniques the first one is from Google. Through Google, we check the state addresses which are required. For example, I want to purchase a unique address in Texas. I will check “Texas address” the search engine automatically searches different websites. Check the rating of the website and purchase your unique address. I think approximately 100$ has been charged for a unique address.
The second technique is we can purchase it from the service provider. Find out any service provider and contact him, and purchase a unique address for your LLC.
Step 3 is Registered Agent:
The third step is to purchase a registered agent. Most of the people purchase from the service provider, and he gives the same address for many LLC accounts. The problem is that if there is a problem appearing at one account automatically all accounts will be affected. The best option is that purchase the address from the third-party website and purchases your registered agent.
Step 4 Notarization
Notarization is the process that assures that the transaction and document are authentically trusted. In this important, the witness person signs our document.
Formation of LLC
The formation of an LLC has different steps. We can create our LLC through the different methods which is given in the following.
- Third-Party Site: search different types state third-party websites where you want to create LLC
- Service Provider: you can hire a service provider for making of LLC. Our services are also available for you to make LLCs, you can just comment on this blog or contact us through our website contact form.
- Yourself: https://direct.sos.state.tx.us/acct/acct-login.asp
