An LLC company, or Limited Liability Company, is a legal business structure that provides liability protection to its owners, known as members. It combines the benefits of a corporation, such as limited liability, with the flexibility and simplicity of a partnership.

The most attractive point of a limited liability company is that it protects its owners/members from personal liability for the debts and legal obligations of the company. The member’s assets remain protected in financial difficulties or lawsuits.

The full form of LLC, generally and in a business context, is a Limited Liability Company.

No, an LLC stands for a Limited Liability Company.

Yes, an LLC is a registered business entity. To establish an LLC, you must file formation documents with the concerned state or local government, typically known as Articles of Organization. This filing process registers the LLC as a legal business entity, allowing it to conduct business activities in compliance with local and federal laws and regulations.

Once an LLC is registered, it gives your company legal recognition. It also establishes its separate existence from its owners, ensuring limited liability protection and other benefits of the LLC structure.

In America, you can set up several different types of companies, such as,

• Sole Proprietorship: A Sole Proprietorship is the most basic business entity or structure out of all. It’s a business owned and managed by an individual.
• Partnership: A partnership business is owned and operated by two or more owners/members. These partners share all of the company’s profits and liabilities. 
• Limited Liability Company (LLC): LLC or Limited Liability Company is a special business entity, but only for America. It operates as a flexible business entity providing limited liability protection.
• Corporation: A corporation is a legal structure separate from its owners (shareholders). It offers limited liability protection and the ability to raise money by selling shares.
• S Corporation: An S Corp is a type of business structure more suitable for small and medium-sized enterprises that want to gain pass-through taxation combined with limited liability benefits.
• Nonprofit Corporation: A corporation organized for charitable or nonprofit purposes.

A separate legal entity means a separate legal entity from its owners/shareholders. It’s usually considered by entrepreneurs looking to form an LLC or a corporation, allowing the business to be distinct from its owners for various legal and financial concerns.

The different types of structures for a limited liability company are, 

• Single member LLC: A Limited Liability Company with one voting member, i.e., the owner, and this member has complete control over their business operations.
• Multi member LLC: A Multi member LLC has more than one voting member/owner, where each member has limited liability protection and a rule-binding operating agreement. 
• Member managed LLC: In a member managed LLC, all owners/members participate in their LLC’s management and decision-making. 
• Manager managed LLC: In a manager managed LLC, the owners/members elect one or more managers to look over the activities and decision-making of an LLC.
• PLLCs: A PLLC or professional LLC runs like a regular LLC but focuses only on certain professions like architecture, law, and accountancy.

A corporation is a legal entity separate from its owners (shareholders). It’s basically an independent entity with rights and liabilities formed through an incorporation process. 

It offers limited liability protection to shareholders, meaning their assets remain protected from the company’s debts, litigations, and obligations. 

Corporations can raise money by issuing shares of stock and can exist forever, even if ownership changes. They are subject to specific legal and regulatory requirements, including holding shareholder meetings and maintaining corporate records.

In the age-old battle of LLC vs sole proprietorship, both choices rest on individual circumstances. 

Entrepreneurs’ “right” business structure depends on their personal situations, preferences, and concerns. A sole prop offers lower costs but exposes you to personal liability. At the same time, an LLC provides limited liability protection, tax benefits, and flexibility but involves a lot of paperwork and big budgeting.

Consulting with lawyers and tax professionals will help you make an informed decision that provides your business with legal and financial security.

Single Member LLCs are easier to set up than other business structures, have lower business expenses, and have a sorted tax structure, which makes them a popular choice amongst small business owners. They offer liability protection without the headache of frustrating rules and formalities that usually come with forming a business.

The owners/members don’t have to pay corporate taxes as the profits and gains pass right through to the owner, and the IRS then collects the taxes from their tax returns. 

Both S Corps and LLCs have their benefits and cons when it comes to running a business. An LLC is more suitable for people looking to launch their business, while an S Corp is excellent for companies that have grown more complicated over the last few years. 

Choosing between an S Corp business structure and an LLC depends on your needs and requirements. 

 To open a Wyoming LLC, consider the following steps:

• Pick a name: The first and the most basic step to tick mark is choosing a name for your Wyoming LLC that complies with its naming rules.
• File Articles of Organization: You must file Articles of Organization with the Wyoming Secretary of State’s office for the next step. It is a legal document that establishes your LLC in Wyoming and its existence and sets forth its basic structure and purpose.
• Hire a registered agent: Recruit one who will receive official and legal documents and notices on your LLC’s behalf. 
• Create an Operating Agreement: Even though it isn’t a compulsion in every state, it sure comes in handy if the members/owners disagree and need help arriving at a solution.
• Obtain necessary business permits and licenses: Depending on your LLC activities, obtain any necessary business permits and licenses at the federal, state, or local levels. 
• Fulfill ongoing requirements: Once you’ve filed your Wyoming LLC, you must comply with ongoing filing requirements. These include filing an Annual Statement of Information, paying franchise taxes, and holding annual shareholder meetings.

Every LLC in America needs a registered agent to receive all important legal documentation, such as annual renewal forms or service of process notices, on behalf of you and your business. 

You should have a person or entity authorized to receive government ordinances, tax forms, and lawsuit notices. 

The main dispute between an LLC and a corporation is their ownership structure and taxation. An LLC offers flexibility in ownership, simpler management, and pass-through taxation, where profits and losses get reported on the owner’s tax returns. 

On the other hand, a corporation has more structured ownership with shareholders, a board of directors, and the potential for issuing shares. Corporations have double taxation, where the entity gets taxed on profits, and shareholders get taxed on dividends received. 

The choice between an LLC and a corporation depends on liability protection, taxation, and business goals.

Starting and maintaining an LLC can cost a pretty penny now and then. How many pennies? Well, that completely depends on where and how you set it up and whether you decide to do it on your own or hire a professional to make things easier. 

Some expenses to consider:

• Filing Fee: The state filing fee is the primary cost when starting an LLC. Depending on your state of interest, the fee could be anything from $40 to $500.
• Filing the Articles of Incorporation: The filing fee for the Articles of Organization could be around $100, a single-time fee.
• EIN Application: The fees for getting an Employee Identification Number could go from $0 to $99, depending on the state you’re interested in.
• Operating Agreement: Even though it isn’t a compulsion in every state, an operating agreement can cost anything from a few hundred to a few thousand dollars. 
• LLC Business Licenses and Permits: The cost of attaining these licenses and permits could be anything from $20 to $500.
• Registered Agents: Authorizing someone as your registered agent will cost anything from $100 and $300 per year.

Starting an LLC can cost anything from $200 to $1500, or even more in some cases. It’s important to research the needs and fees in your specific state and consult with professionals to determine the costs of starting an LLC.

For a more detailed overview of the same, you can read our blog right here.