A limited liability company (LLC) is a type of business entity you can register in your state. The main purpose of an LLC company is to limit the personal liability of its owners—like a corporation—but it also allows the business to operate with simpler, more flexible tax requirements.

An LLC isn’t always required, but many small business owners form an LLC for personal liability protection. Having an LLC can also help you open bank accounts, enter into contracts, hire employees, and get necessary business licenses and permits.

LLC stands for "limited liability company." It refers to the ways in which you can use an LLC to protect your personal assets.

It’s not necessary to form an LLC in order to start a business. Also, an LLC is only one of several ways to structure a business. Other possibilities include: C corporation, S corporation, nonprofit, sole proprietorship, general partnership, limited partnership, and limited liability partnership.

Both LLCs and corporations protect owners’ personal assets from business liabilities or debts. But they have some key differences, including:

• How they’re owned: LLCs have one or more individual members, but corporations have shareholders.
• How they’re maintained: LLCs generally have less formal record-keeping and reporting requirements.
• How they’re taxed: LLC profits usually pass through to members before taxes, while profits for some corporations are taxed at the company level first.

An LLC is a type of business entity while an S corporation is a corporation with a special federal tax election. Either an LLC or a C corporation that meets certain requirements can apply to be treated as an S corporation for tax purposes. An S corp. is similar to an LLC in that it can help its owners avoid double taxation.

Yes, but it’s not all that common. Certain requirements must be met, and it can be a little confusing to understand all of the legalities. It’s always wise to seek advice from a legal professional and/or tax advisor to determine whether to take your business in this direction.

Yes. Generally speaking, an S corp. can be a member of an LLC.

It depends. Our LLC plans start at $0 plus filing fees, and you can add more services as your business needs them. LLC filing fees also vary by state. However, all of these costs are often tax-deductible.

Our do-it-yourself packages (Basic, Pro) don’t include access to an attorney—but our attorney-assisted package (Premium) includes unlimited 30-minute consultations with independent attorneys from our network, with each consultation focused on a new legal topic or issue related to the formation and launch of your LLC.