Do you wish to have your dream business but are afraid of the many demands and hassles of setting up one? Or you might be worried of the high cost of maintenance the way corporations work. To tell you the truth, you can make both ends meet. You can set up your business like a corporation with less worries and concerns. You just have to form an LLC.
LLC is short for Limited Liability Company. A lot of people mistakenly substitute the word “Company” to “Corporation”. We cannot blame them for and LLC works just like a corporation but in fact, it is a company. LLC is advantageous in many ways. It offers personal liability protection to the members of the company and it can even send income directly to these members with taxation options of whether you are taxed as a corporation or LLC.
You need to have an EIN before you can start forming an LLC though. EIN or Employer Identification Number is needed to start any legal business. Others call EIN as the Federal Tax Number. If you open a new business, you may want to open a bank account for your business, you will be having employees to manage and take care, and these will all need EIN.
Like many other things, you can apply for your EIN number online. It is easier, faster, and more convenient. Having your EIN will not just enable you to open up a business but this will also be used by the IRS for the verification that your business is a tax paying entity. If you want to have your business set up smooth, you need to have an application for your EIN number online and then you can go ahead forming an LLC.
Having the characteristics of both a corporation and a partnership, if there are many owners, or a sole proprietorship, if you are the only owner make forming an LLC hybrid. You get best of both worlds. LLC is very suitable for a single owner companies and is also more flexible than a corporation.
Forming an LLC may sometimes be difficult, most especially if this is your first step into the business industries. You could just imagine all the confusing terms you will be facing and wondering how you will ever going to survive. The happy story however is that an easy way of forming an LLC is forming it online.
Online sites offer assistance to people especially to freshmen in the business world. It is easier to process and help is always at hand when you are forming an LLC.
Processing online is a fast and easy way to get your EIN and forming an LLC. T