The first decision to make before starting a new business is to choose an entity depending on how you want to run your business. Generally, most entrepreneurs either register as a corporation or process LLC Registration. Limited liability companies protect personal assets, provide ease of operation and tax flexibility. Read on as Global Multi Services takes us through what you need to know about LLC Registration.

LLC Registration

WHAT IS A LIMITED LIABILITY COMPANY?

Limited Liability Company is a business entity where the members are not liable for the company’s debt or liabilities. It combines the features of a corporation, partnership, or sole proprietorship. The members file taxes, listing the profits and losses of the business on their tax returns.

LLC Registration requirements vary from one state to another, and anyone can be a member of the business entity. These include foreigners, other limited liability companies, corporations, and many more. LLC provides a more formal partnership, more flexibility, and protection. It is also easy to establish when compared to other entities.

HOW TO ESTABLISH A LIMITED LIABILITY COMPANY

Limited Liability Company is created by choosing a name, designating a registered agent, and filing articles of organization in your base state. The articles of organization contain the name and address of all the members, business statement of purpose in the base state, the right, duties, and other obligations of each member of the limited liability company.

ADVANTAGES Of LLC REGISTRATION

Tax Flexibility

Limited liability companies’ members choose how they want to be taxed. They are taxed like a corporation, a partnership, or a sole proprietorship. But most tax option s similar to a sole proprietorship. That means most of them file taxes listing the profits and losses on their tax returns. Many limited liability companies do not pay corporate tax. These help them to avoid double taxation.

Simple To Set Up

Limited liability companies are easy to set up compared to other business entities. They are generally under state law, and their requirements depend on the state it is being established. They also take less paperwork and are simple to manage. While some states require filing articles of organization with the Secretary of State in person and drafting of Operating Agreements, other states allow online filling.

DISADVANTAGES OF LLC REGISTRATION

Self-Employment Tax

Limited liability companies pay self-employment tax, and these taxes can sometimes be more than taxes paid by a corporation. The self-employment tax includes Social Security tax, medical tax, and many more.

Automatic Dissolution

Other members of a limited liability company’s liability are protected if one of them fails to meet its legal obligations. However, the automatic dissolution of the limited liability company gives creditors leverage to go after members. Death or withdrawal of a member without any succession can affect their operating agreement and structure. These can also lead to automatic dissolution.

Different State Law

The difference in state requirements and laws governing the establishment and operations of a limited liability company can affect its operation in multiple states. It can also lead to additional documentation and paperwork across different states.


It is often an exciting moment in the growth of a business owner when they decide to formalize their business structure and transition from a sole proprietorship to a limited liability company. Converting and LLC Registration can seem daunting at first. But you will need it when your business expands, and you need a legal separation between your personal and your business affairs.

Operating as a sole proprietor can be an easy and affordable way to start a business. You can be successful even if you do not have a formal business entity for your company. However, being a sole proprietor can put your asset in danger and leave you vulnerable to other risks.

Therefore, switching from a sole proprietorship to LLC when your business is growing is a wise choice. Learn more as Global Multi Services explains how to convert from a Sole Proprietorship to a Limited Liability Company.

LLC Registration

ASK A PROFESSIONAL FOR HELP

Establishing a Limited Liability Company comprises legal documentation, so you may want to get assistance from a legal practitioner. You can sign up for one online or hire an attorney.  An online service will guide you through the entire process and are also less expensive. However, hiring an attorney will give you more specialized assistance but is very costly.

PICK A BUSINESS NAME

Pick a unique name to register your LLC and ensure it does not infringe on anyone’s trademark. Check if the name is available by contacting your state secretary of state office or their online database for registered business names. You can also ask for the help of a legal professional.

FILE ARTICLE OF INCORPORATION

The article of incorporation is a document that includes information about your Limited Liability Company. These include business name, address, registered agent, the names of members, and many more. These can generally be processed online through the website of your business filing agency state.

DESIGNATE A REGISTERED AGENT

Registered agents are the main point of contact between your limited liability company and the state and other legal authorities. Your registered agent must be in your business state and be available during business hours. You can choose to function as your agent or hire an attorney to take on this role.

OPEN A BANK ACCOUNT

You need to open a new business bank account for the limited liability company. Apply for a business bank account with your new LLC name. Even if you already have a business bank account for your sole proprietorship, you need to update your business bank information to reflect your new LLC status. These will help you separate your business and personal assets.

APPLY FOR LICENSE AND PERMIT

Regulations for business licenses vary from state to state. Therefore, update your business permits with the LLC name and change your business structure. You may need to reapply for some permits and licenses under your new business name. These depend on your state, local laws, and regulations. So be sure to check on your state requirements for confirmation.


Starting a new business comes with the struggle of making decisions about your business structure. Entrepreneurs are often stuck between choosing LLC Filing, Limited Partnership, Sole Proprietorship, and other business organizations. Selecting a business structure has an impact on your business longevity. Your business reputation, personal tax situation, legal actions, your liability for debts and legal action, and others will also be affected by the choices you make to formalize your company. This is where LLC Filing companies enter the picture. Limited Liability Company is a business structure where members are not liable for the company’s liabilities or debt. It is considered easy, the most flexible and effective business structure to create by experts. LLC Registration is a popular choice for small business owners because of its liability protection, cost of registration, taxation, and management flexibility. Understanding the benefits of LLC is essential for business success. Read on as Global Multi Services gives us information that will help you determine if an LLC is right for your business.

LLC Filing

Benefits of LLC Filing 

Here are the benefits of LLC Filing for your business

Management and Ownership Flexibility 

Limited Liability Company has enormous flexibility when it comes to management and ownership. They also have no restrictions when it comes to the members they can have. LLC can choose to be member-managed or manager-managed. That is, members can share the responsibilities of the day-to-day operation of the business or designate one or more managers to run the business. The manager can be a member of the LLC, a non-member.

Personal Liability Protection

LLC provides its members personal liability protection. That is, owners are not personally responsible for any debt or business-related lawsuit incurred by the company. Creditors can only file lawsuits against the LLC and cannot collect any personal assets of the members. These include personal accounts, personal properties, and many more.

Tax advantage 

LLC Filing companies benefit from pass-through taxation because they are not taxed as a business entity which means members avoid double taxation. The profits and losses incurred by the company pass through the business to the member’s tax return and are taxed at their rates. Singled-member LLCs are taxed the same as sole proprietorships, while two or more members are taxed as a partnership business structure.

Disadvantages of LLC Filing

Here are the disadvantages of LLC Filing

Expensive to setup 

An LLC is generally expensive to form and maintain when compared to a sole proprietor or a partnership. States charge an initial LLC Filing fee, and many states also impose ongoing fees such as annual reports, franchise tax fees, and many more. LLC Filing Companies also have a written agreement laying out how the LLC will be governed.

Transferable ownership 

Transfer of ownership in LLC is often hard as all the members must approve adding new members or altering the ownership percentages of existing members. Unlike corporations, where the company can sell shares of stock to increase its ownership.