The creation of Limited Liability Companies (LLC) in United States

Extract

[...] Attention is prohibited to banks and insurance to be incorporated as an LLC. The name of an LLC cannot be composed of terms banks and insurance ("insurance"). There is the possibility to reserve a name for an LLC, before the formalities of incorporation. It must complete the "Application for Reservation of Name" available from state agencies responsible for registering companies' Division of Corporations, State Records and Uniform Commercial Code "(paid service) Write the "Articles of Organization," which usually include the name of the LLC and the names of the partners ("members"). [...]

[...] The creation of a limited liability company (LLC) in the U.S. I. Presentation of different legal structures in the U.S The General Partnership This is an oral or written contract between two individuals or partners who team up for a particular case. There are no legal formalities apart from partners signing this contract, and assuming it as personal responsibility in case of losses too. They are also responsible for the acts of other partners. They do not pay taxes for the company but must report losses and profits thereof on their personal financial statements. [...]

[...] The personal liability of members of such societies is limited to the amount of their contributions. They are not doubly taxed, they are taxed on their personal income. The contract must be drafted very carefully. The State of California imposed a tax of $ 800 and an annual tax based on the turnover of the company (between $ 500 to $ 4,500 per year) even if there are no profits generated by it. Finally, another drawback is to emphasize that this legal structure is a recent institution, so there are still some uncertainties due to the lack of jurisprudence and an incomplete regulation. [...]

[...] The fiscal year begins when the shareholders want. Employees becoming shareholders can deduct their fees based on the payroll, pension plans or insurance if required. But this type of structure requires significant management and editing that is very picky. In addition, you have to pay $ 800 tax when the company is not sure to make a profit. Finally, there is double taxation, because the shareholders did not "tax credit" The Corporation LLC This is a legal form created in 1994 in California. [...]

[...] The partners have considerable flexibility in drafting the contract. Finally, this type of contract is easy to dissolve and partners of such company may be foreign to the country. But we must remember that the General Partners have unlimited personal liability The Corporation In this type of legal structure, the number of shareholders is unlimited, they can be individuals or legal persons of foreign or non-residents. There is no minimum capital to create this structure. Salaries and expenses are adherent, insurance, retirement plans, and payments to charities are deductible expenses according to the shareholders. [...]