Tailor Brands’ Package to Form an LLC Online
Setting up an LLC has never been easier. Inc Authority’s LLC formation package includes all the essentials you need to file and form your LLC online.
- Annual compliance notifications for filing legal documents like annual reports, filing taxes, and other obligations.
- Expedited processing of your LLC formation application within two business days.
- Help with drafting a comprehensive LLC operating agreement with all important details.
- Free website domain for one year and access to a DIY website builder with the Elite plan.
- Free business and branding tools, such as a digital business card and social media post maker, with the Elite plan.
Tailor Brands offers everything you need to form an LLC online. Simplify the LLC formation process and apply for an LLC online via Tailor Brands.
Easy LLC application filing. Get your LLC online.
What is an LLC? What Does It Take to Form an LLC Online?
LLCs or Limited Liability Companies are one of the most common entity types used by startup and small business owners due to their flexible structure. Another reason you should form an LLC online is that it can help protect your personal assets by “limiting” your liability as a company owner.
The IRS defines a Limited Liability Company as a:
“Business structure allowed by state statute. Each state may use different regulations, and you should check with your state if you are interested in starting a Limited Liability Company.”
Forming an LLC online involves filing a document called the Articles of Organization with your state’s Secretary of State. Because of regional differences, the exact fees and administrative steps of setting up an LLC may vary from state to state.
However, a few LLC formation rules remain the same, regardless of which state you form an LLC in. Let’s take a look at the rules that apply to all LLC business entities:
Owners of an LLC are called “members.” Members may include individuals, consultants, corporations, other LLCs, and foreign entities. However, they cannot be banks or insurance companies.
You can form a single-member or a multi-member LLC by applying online. There is no maximum number of members required for setting up an LLC.
There cannot be more than one active LLC with the same name in the same state.
For Federal tax purposes, you must choose to either treat your LLC as a Sole Proprietorship, a Partnership, or a Corporation. Otherwise, it is disregarded as an entity separate from its owner(s).
GovDocFiling, through its tie-up with Tailor Brands, makes it easier for you to file for an LLC online, get your EIN/Tax ID, assign member roles, and get your business up and running in no time.
Efficient LLC application processing. Full support.
How Does LLC Taxation Work?
LLC taxation depends on the type of LLC you form.
If only one person is establishing an LLC, it is called a “Single-Member LLC.” A single-member LLC is taxed as a Sole Proprietor, which means that profits and losses of that LLC are passed to the individual’s federal tax return (IRS Form 1040).
If a husband and wife form an LLC together, some states (such as California) allow the business to be classified as a single-member LLC for Federal tax purposes.
If more than one member set up an LLC, it is referred to as a “Multi-Member LLC.” By default, multi-member LLCs are taxed as Partnerships, which means the profits and losses of the LLC are passed to each member’s individual Federal tax return (IRS Form 1040).
However, LLC members can also choose to be taxed as a Corporation:
- If electing for C-Corp taxation status, the profits and losses of LLC are reported on IRS Form 8832.
- If electing for S-Corp taxation status, the profits and losses of LLC are reported on IRS Form 2553.
LLC taxation details, fees, and requirements also vary from state to state depending on the state’s taxes and licenses.
In California, for example, there is an income-based annual fee for any LLC earning more than $250,000 in a single tax year. However, there is also an annual flat tax of $800 for all LLCs — regardless of their earnings for the year.
This $800 tax is one reason why some small businesses elect not to form an LLC. This is especially true if the benefits of liability protection do not outweigh the cost of the state tax.
To find out what state-specific LLC taxation rules apply to your business, visit your state’s Department of Revenue. You can also check out our state-specific LLC formation pages for more details and easy LLC filing.
Simplified LLC, EIN/Tax ID filing process.
Why Should You Apply for an LLC? Key Benefits
The easiest way to get your business up and running with minimal compliance is to form an LLC online. That’s why it is a popular choice among freelancers, consultants, startups, and anyone who is starting out.
Here are the benefits you’ll get if you apply for an LLC and choose it over other business structures.
Personal asset protection :
With limited liability protection, lenders, banks, and creditors can’t pursue LLC members’ savings accounts, homes, and other personal assets to pay off company debts.
However, as Partnerships and Sole Proprietorships, the LLC and owner are legally considered the same - leaving the personal assets exposed.
Heightened credibility:
Forming an LLC can make your company look more professional and legitimate in front of your lenders, employees, vendors, suppliers, and potential customers.
Minimal compliance requirements:
LLCs have fewer yearly and ongoing state-enforced filing requirements than S-Corporations and C-Corporations do
Flexible management :
You can choose a member-managed or a manager-managed organizational structure while forming your LLC.
Pass-through taxation:
LLCs generally do not pay taxes at the corporate level. Any LLC business profits and losses are “passed through” to the owners (members), who report these earnings on their personal income tax returns.
Limited restrictions:
Unlike with an S-Corporation, there are very limited restrictions on who can form an LLC online and how many owners an LLC may have
Launching your business is easier with LLC formation.
LLC application & formation. EIN/Tax ID filing.
Guidance on LLC Formation & EIN/Tax ID Filing
We are a small business ourselves, and we know what exactly you need and the mistakes to avoid. We are committed to providing you with the best recommendations to help you legally start your LLC business in various states.
To apply for an LLC, just click the link below and you’ll be guided through the process with support available every step of the way to answer your questions, and reduce potential mistakes that might delay the approval process.
Once everything has been verified, your LLC and EIN/Tax ID paperwork with the appropriate state and Federal agencies — entirely on your behalf. You can easily apply for an LLC and track the progress of your application and LLC paperwork via the online portal.
Applying for an LLC and EIN has never been easier!
Quick filing. Low cost. Expedited processing.
Quickly Obtain an EIN for Your Limited Liability Company (LLC)
Before you form an LLC online in your state, you must first obtain an Employer Identification Number (EIN) from the IRS. This unique nine-digit Tax ID is what the state and federal agencies use to determine your LLC’s tax obligations for the year.
Applying for an LLC EIN is often a time-consuming process due to extensive paperwork and approval delays. With our intuitive one-page form, however, you can quickly apply for your EIN/Tax ID and benefit from expedited filing time without any additional costs.
Quick and easy LLC formation.
Frequently Asked Questions
A federal Tax ID Number is an identification number used by the Internal Revenue Service (IRS) to administer tax laws. This number is issued either by the IRS or Social Security Administration (SSA). A business Tax ID number is required on tax return forms.
An Employer Identification Number is a nine-digit number that identifies your business. It works much the same way your social security number does. If your company has employees, is a corporation or partnership, has a Keogh Plan or fits one of several other situations, it must have its own EIN.
As a business owner, you probably know your company needs an EIN (or Tax ID Number) issued by the IRS for tax purposes. But what if you own multiple businesses or operate different divisions of the same entity?
Your business is going to need to file income taxes. The Internal Revenue Service uses Tax Identification Numbers to distinguish between individuals, business, and nonprofit organizations, but business tax ID numbers should be distinct from your personal federal tax ID number.
For the IRS to conduct its business, it must have an easy way to identify each individual and business. To do this, they require each individual and business to have a tax ID number.
A social security number (SSN) is a tax code used by an individual, while a tax ID is a nine-digit tax code for a business entity. For a business entity, a tax ID is usually called an EIN.
If you’ve ever considered working for yourself, or starting your own business, you may have wondered: what is a DBA? Is a fictitious business name the same as a DBA? What are the benefits of a DBA to my business and myself?
Each type of business entity has clear advantages and disadvantages. Can a DBA be filed for all business types? In most cases, yes; but understanding what a DBA is and what it’s limitations are will help you decide if it’s worth
DBA application filing is a process overseen by state DBA laws and local government, protecting the public from nefarious business owners. DBA is an abbreviation for “doing business as,” and is also referred to as a fictitious name or trade name.
If you’ve ever considered freelancing, or starting your own business, you should take a few moments to answer this very important question: Do I need a DBA? Not every small business owner needs to pursue DBA application filing, but
DBA is an acronym that stands for “doing business as.” You may be wondering “do I need a DBA?” If you intend to do business using a name other than your legal business name, you need a DBA. DBAs are common for sole proprietors or partnerships that do not want to use the owners’ legal names to do business.
If you’re starting a business, there are more then a few abbreviations you’ll need to remember. Filing a DBA application, or applying for an EIN, are two common steps for new business owners. However, they are not the same thing, and as a business owner you should know the difference.
A limited liability company, commonly referred to as an LLC, combines the taxation benefits of a partnership with the limited liability of a corporation. Instead of partners, LLC business owners are called members, and there can be several, or a single member.
A limited liability corporation is one in which the members aren’t personally responsible for any company liabilities or debt. Limited liabilities have the protections of a corporation but the flexibility of a partnership. If your business is listed as a limited liability corporation, you can benefit further by applying for an Employer Identification Number.
The fine print that separates a limited liability company (LLC) from a corporation can be overwhelming for new business owners or entrepreneurs. While the minutia of these details might be best suited for a legal advisor or accountant, the broad differences are fairly easy to understand, and they might be enough to help you make a judgment
Limited Liability Companies (LLC) are popular business structures because they offer personal liability protection for members and don’t have all the formalities that corporations do. LLCs also enjoy pass-through taxation, which means the company doesn’t pay federal income taxes; instead,
For entrepreneurs thinking about starting their own business, forming an LLC is an ideal option, as such an entity provides the owners protection from lawsuits, business debts and other business indiscretions. However, in order to obtain that protection, there are a number of documents that the business owner or owners must file with the state government prior to conducting business.
A Limited Liability Company is a legal entity all its own, while a partnership is owned by two or more people who share legal responsibility of the business entity. In a partnership, the business does not possess a legal identity outside of the business owners. A Limited Liability Company offers more flexibility in terms of operations and personal asset protection.
A C-Corporation is just anther way of saying corporation. It means the same thing. Corporations are incorporated business entities that file Articles of Incorporation with the Secretary of State or a similar government agency.
There are certain C-Corp requirements to meet whether you want to start a corporation with one shareholder or dozens. It is certainly possible to apply for a C-Corporation EIN with multiple owners, and when forming a C-Corp in this manner, there are a few points to keep in mind.
Unlike other business structures, C-Corp taxation is significant in that corporations are taxable entities. Corporations are taxed like an individual and contribute according to corporate income, and then again on shareholder tax returns. This is commonly called ‘double taxation’.
S-Corporations, sometimes called S-Corps, can be useful ways for business owners to avoid what’s called “double taxation”, while also protecting shareholder assets from personal liability. It’s a mix of advantages drawn from other types of business entities; and it isn’t nearly as complicated or time consuming as you might think to establish.
Before we dive into how to file to become an S-corporation, let’s take a look at what an S-corporation is, exactly, and why you may want to establish this type of business entity for your company. S-corporations are similar to partnerships, or sole proprietorships, at least in terms of how the company will affect you financially.
There’s No Such Thing as a Disqualified S Corporation. Luckily, S corporation disqualification is more of an urban legend than fact. In 2010, Congress attempted to pass a measure that would have disqualified some S corporations, primarily small businesses, from using S corp tax structures when filing.
Ready to Form an LLC Online?
Tailor Brands has helped over 500k LLCs get started and can help you form an LLC online quickly and efficiently. Leverage its free LLC formation services to file for an LLC online today.