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Once you have compiled all the LLC formation documents, they need to be filed with the Secretary of State, where you plan on setting up. Depending on your chosen industry, you will have to obtain a license with a corresponding agency. For example, to operate as an insurance agency, you will need to get a license from the state Insurance Department. An LLC that plans to hire employees will also have to obtain the Federal Employer Identification Number, a form, or license, helping LLC pay taxes on their employees or reap other tax benefits. If your state offers a certificate of good standing or similar document, you may also use that to prove your business is legal and valid.
Depending on elections made by the LLC and the number of members, the IRS will treat an LLC as either a corporation, partnership, or as part of the LLC’s owner’s tax return (a “disregarded entity”). Specifically, a domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 and affirmatively elects to be treated as a corporation. For income tax purposes, an LLC with only one member is treated as an entity disregarded as separate from its owner, unless it files Form 8832 and elects to be treated as a corporation. However, for purposes of employment tax and certain excise taxes, an LLC with only one member is still considered a separate entity. And if a municipality has industry-specific business licenses, a license or permit may be required depending on what your business does.
MASSACHUSETTS LLC GUIDE
This helps protect the individual doctors from personal liability for medical malpractice awards. There are variations that include sole proprietorship LLCs, family LLCs, and member-managed LLCs. Appointing a registered agent is a simple – but essential – step for every business. You can also review our state guide to LLC tax and annual filing requirements to find out the rules in your state. Additional tax and regulatory requirements could apply to your LLC. You should review the following requirements when starting your LLC.
Please note that the filing receipt and certified copy, if requested, will be returned by first class mail by the United States Postal Service. The filing receipt and certified copy, if requested, are mailed separately. You may request that your filing receipt and certified copy be returned to you by overnight delivery service by including a prepaid Learn About Real Estate Bookkeeping Best Practice shipping label with your request. The Department of State will not accept prepaid shipping labels with the Department of State listed as the sender. The prepaid shipping label must list yourself as the sender and the receiver. Filing receipts and related documents for online filings are emailed to the email address provided at the time of filing.
What is ‘inc.’ in a company name?
When there are many co-owners of a company, you might have to obtain a license for each member, especially if you have a professional LLC. You will obtain legal authorization to operate your business once you are https://adprun.net/whats-the-difference-between-bookkeeping-and/ qualified and receive your LLC license. Seeing as some LLC licenses can be obtained online, you will either receive immediate approval or be notified when the licensing authority has evaluated your application.
- The government regulates people who can provide goods or services.
- Filing and registering an LLC with any given state does not require an attorney.
- There’s no shame in bringing in expert help if you’re unsure how to form an LLC or if it makes sense for your business.
- Once this form is filed with your state, along with any other required documents and filing fees, your LLC is an active business.
- This is especially common for businesses located in cities close to state lines, where they may want to expand across the border.
- Business licenses and permits are issued based on the type of business and industry you are in.