U.S. Business Formation > LLC > D-I-Y Guide
Start an LLC
Easy-to-Follow, Do it yourself guide! Launch your Limited Liability Company in 8 steps.
Before you start
Disclaimer:
The information in this guide is for educational and informational purposes only and should not be considered legal or tax advice. It is essential to consult with a qualified attorney before making any decisions based on the guide. While we strive for accuracy, we disclaim liability for errors or omissions. By using this guide, you acknowledge its limitations, and the Company and its employees, owners, or contributors are not liable for any consequences resulting from not seeking professional advice.
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What is an LLC?
An LLC, or limited liability company, is a business structure that offers the benefits of both a corporation and a partnership. Like a corporation, an LLC provides limited liability protection for its owners, meaning that the owners' personal assets are not at risk if the business is sued. Like a partnership, an LLC is easy to form and maintain, with fewer legal requirements than a corporation.
Here are some of the key benefits of forming an LLC:
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Limited liability protection: The owners of an LLC are not personally liable for the debts and liabilities of the business. This means that if the business is sued, the owners' personal assets are not at risk.
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Flexibility: LLCs are very flexible, and the owners can customize the structure of the business to meet their specific needs.
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Simplicity: LLCs are relatively easy to form and maintain, with fewer legal requirements than a corporation.
If you are considering starting a business, an LLC is a good option to consider. It offers the benefits of both a corporation and a partnership, and it is relatively easy to form and maintain.
Do you need an LLC for your business?
When starting a business, there are many factors to consider, including the type of business entity to form. A limited liability company (LLC) is a popular option for businesses of all sizes, but it's not always the best choice. Here's a look at the pros and cons of forming an LLC to help you decide if it's the right structure for your business.
Pros of forming an LLC:
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Limited liability protection: LLC owners are not personally liable for the debts and liabilities of the business. This means that if the business is sued, the owners' personal assets are not at risk.
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Flexibility: LLCs are very flexible, and the owners can customize the structure of the business to meet their specific needs.
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Simplicity: LLCs are relatively easy to form and maintain, with fewer legal requirements than a corporation.
How to decide if an LLC is right for you:
If you're considering forming an LLC, it's important to weigh the pros and cons carefully to decide if it's the right structure for your business. Here are some factors to consider:
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The size and complexity of your business.
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The amount of liability protection you need.
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Your tax situation.
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Your state's laws governing LLCs.
If you're not sure if an LLC is right for you, it's a good idea to consult with an attorney or accountant who can help you make the best decision for your business.
How Do I start my LLC?
Starting an LLC can be a daunting task, but it doesn't have to be. Here are 8 simple steps to get you started:
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Choose a name for your LLC. Your LLC name must be unique and available in your state.
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Appoint a registered agent. A registered agent is a person or business that receives legal documents on behalf of your LLC.
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Get a US mailing address. You need a physical address in the US for your LLC to file its paperwork.
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File your Articles of Organization. This is the document that officially creates your LLC.
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Confirm the filing of your Articles of Organization. This step ensures that your Articles of Organization have been filed correctly and that your LLC is now officially registered with the state.
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Create an operating agreement. This document outlines the rules and regulations of your LLC.
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Obtain an Employer Identification Number (EIN). An EIN is a tax ID number that your LLC needs to file taxes with the IRS.
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Open a business bank account. This will help you keep your business finances separate from your personal finances.
Once you've completed these steps, you'll be well on your way to starting your own LLC!
How to Choose the Right Business Setup and State to Register in?
The right business setup and state to register in can have a significant impact on your business's legal liability, tax obligations, and future growth. It's important to carefully consider your options before making a decision.
Here are some factors to consider when choosing a business setup:
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Legal liability: How much personal liability are you willing to assume? A sole proprietorship offers the least protection from liability, while a corporation offers the most.
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Taxes: How will your business be taxed? The tax implications of different business setups can vary depending on the state you register in.
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Future growth: How do you plan to grow your business? If you plan to raise capital or attract investors, a corporation may be a better option.
Once you've considered these factors, you can use Our AI wizard to help you choose the right business setup for your specific needs. An AI wizard can analyze your options and recommend the best business entity for your business, as well as the state to incorporate in. The AI wizard will also explain why it made its recommendation and show you all the alternatives as well.
Here are some of the benefits of using an AI wizard to choose your business setup:
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Save time and money: An AI wizard can help you make a decision quickly and easily, without having to research all the different options yourself.
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Get expert advice: the AI wizard is powered by artificial intelligence, which means it can access and process vast amounts of data to make informed recommendations.
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Get peace of mind: Knowing that you've chosen the right business setup for your business can give you peace of mind and help you focus on growing your business.
If you're not sure which business setup is right for you, I recommend using the AI wizard to help you make a decision. It's a quick, easy, and affordable way to get expert advice and choose the best business entity for your business.
8 Steps to Successfully Start your LLC
1. Name your LLC
Once you've decided to form an LLC, the next step is to choose a name. Your LLC name must be unique and available in your state. You can check your state's website to see if your desired name is available.
When choosing an LLC name, there are a few things to keep in mind:
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Your LLC name must be unique. It cannot be the same as any other LLC name in your state.
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Your LLC name must include the words "limited liability company" or an abbreviation of it, such as "LLC" or "L.L.C." The acceptable abbreviations vary by state.
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Your LLC name cannot be misleading. It cannot be something that is likely to confuse customers or creditors.
Once you've chosen a name for your LLC, you can file your Articles of Organization with the state. Your Articles of Organization will include your LLC name.
Here are some tips for choosing a great LLC name:
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Make it easy to remember. You want people to be able to remember your LLC name easily.
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Make it relevant to your business. Your LLC name should be relevant to the type of business you're in.
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Make it unique. Your LLC name should be unique so that it stands out from the competition.
AI name generator:
ChatNRA is an AI name generator that helps you find the perfect name for your company. Enter style, color, atmosphere, and feeling to generate unique and memorable names that are relevant, catchy, and available. Save time and get the perfect name in minutes.
2. Appoint a Registered Agent
Why You Need a Registered Agent for Your LLC:
A registered agent is a person or business entity that is appointed by an LLC to receive legal documents and other important communications on the LLC's behalf. This is a requirement in most states, and it is important to choose a registered agent carefully.
There are two main options for choosing a registered agent: you can either appoint yourself as the registered agent or you can hire a third-party registered agent service.
If you appoint yourself as the registered agent, you will need to have a physical address in the state where your LLC is formed. This can be a home address or a commercial address. You will also need to be available to receive legal documents and other communications during regular business hours.
If you hire a third-party registered agent service, they will provide you with a physical address in the state where your LLC is formed and they will be available to receive legal documents and other communications on your behalf. This can be a great option if you do not want to be bothered with receiving legal documents or if you do not have a physical address in the state where your LLC is formed.
Here are some of the benefits of using a third-party registered agent service:
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Privacy: When you use a third-party registered agent service, your personal address is not listed on public records. This can help to protect your privacy.
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Flexibility: Third-party registered agent services are typically available 24/7, so you can be sure that your legal documents and other communications will be received promptly.
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Peace of mind: Knowing that your legal documents and other communications are being handled by a professional can give you peace of mind.
If you are considering forming an LLC, it is important to choose a registered agent carefully. A third-party registered agent service can be a great option for many businesses.
Please note: Our all-inclusive LLC package includs a registered agent service.
3. USA Mailing Address
When forming an LLC, you will need to provide a mailing address for your business. This address will be used for official correspondence from the state and other entities. You can use your home address or a physical address that you rent, but many LLC owners choose to use a virtual mailing address.
A virtual mailing address is a service that provides you with a physical address that you can use for your business. Your mail is then forwarded to you at a different location, such as your home or office. This can be a great option for LLC owners who want to keep their personal address private or who do not have a physical office space.
There are many virtual mailing address services available, and some of them offer free plans for LLCs. One popular option is ChatNRA, which offers a free US mailing address for 1 year with its ChatNRA Pack.
Here are some of the benefits of using a virtual mailing address for your LLC:
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Privacy: You can keep your personal address private by using a virtual mailing address.
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Convenience: You can receive your mail at a location that is convenient for you, such as your home or office.
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Cost-effectiveness: Virtual mailing address services typically offer free or low-cost plans for LLCs.
If you are forming an LLC, I recommend that you consider using a virtual mailing address. It is a great way to keep your personal address private, be more convenient, and save money.
Please note: Our all-inclusive LLC package includs a USA mailing address service.
4. File Articles of Organization
How to File Articles of Organization for Your LLC:
The Articles of Organization is a document that is filed with the state to officially create your LLC. It includes information about your LLC's name, registered agent, purpose, and members.
The filing requirements for Articles of Organization vary from state to state, so it is important to check with your state's Secretary of State's office to see what is required. In general, you will need to provide the following information:
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Your LLC's name
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Your LLC's mailing address
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Your registered agent's name and address
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The purpose of your LLC
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The names of your LLC's members
You may also be asked to provide additional information, such as the location of your LLC's operations or whether your LLC is member-managed or manager-managed.
Once you have gathered all of the required information, you can file your Articles of Organization with the state. In most states, you can file online or by mail. The filing fee will vary from state to state.
Once your Articles of Organization have been filed, your LLC will be officially created. You will receive a Certificate of Formation or Certificate of Organization from the state. This document is proof that your LLC is a legal entity.
Here are some tips for filing your Articles of Organization:
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Make sure to double-check all of the information you are providing. Any errors could delay the filing process or even invalidate your Articles of Organization.
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Pay the filing fee on time. Late fees can be expensive.
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Keep a copy of your Articles of Organization for your records. You will need it for future reference.
5. Confirmation of Filing
Once you have filed your Articles of Organization with the state, you will receive a Certificate of Formation or Certificate of Organization from the state. This document is proof that your LLC is a legal entity.
It will typically include the following information:
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Your LLC's name
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Your LLC's mailing address
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Your registered agent's name and address
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The date your LLC was formed
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The state in which your LLC was formed
You should keep a copy of your Certificate of Formation or Certificate of Organization for your records. You will need it for future reference, such as when you open a business bank account or apply for a business loan.
You can also use your Certificate of Formation or Certificate of Organization to verify your LLC's existence with potential customers, vendors, and partners. This will help to build trust and credibility with your business associates.
6. LLC Operating Agreement
Once you have filed your Articles of Organization with the state, you will receive a Certificate of Formation or Certificate of Organization from the state. This document is proof that your LLC is a legal entity.
It will typically include the following information:
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Your LLC's name
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LLC Operating Agreements: A Smart Business Move
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An LLC operating agreement is a legal document that outlines the ownership, management, and operation of an LLC. It is not required in all states, but it is a smart business move to have one.
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An operating agreement can help to protect the personal assets of LLC members, resolve disputes, and ensure that the business runs smoothly. It can also be used to define ownership percentages, responsibilities, voting power, and a succession plan in case an owner leaves the business.
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Here are some of the benefits of having an LLC operating agreement:
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Protects personal assets: An operating agreement can help to protect the personal assets of LLC members from business debts and liabilities.
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Resolves disputes: An operating agreement can help to resolve disputes between LLC members.
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Ensures smooth operation: An operating agreement can help to ensure that the business runs smoothly by outlining the roles and responsibilities of each member.
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Defines ownership percentages: An operating agreement can define ownership percentages for each member.
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Provides voting power: An operating agreement can provide voting power for each member.
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Outlines a succession plan: An operating agreement can outline a succession plan in case an owner leaves the business.
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The state in which your LLC was formed
You should keep a copy of your Certificate of Formation or Certificate of Organization for your records. You will need it for future reference, such as when you open a business bank account or apply for a business loan.
You can also use your Certificate of Formation or Certificate of Organization to verify your LLC's existence with potential customers, vendors, and partners. This will help to build trust and credibility with your business associates.
7. Apply for EIN - Tax ID Number
Get an EIN for Your LLC!
Once you have formed your LLC, you will need to get an Employer Identification Number (EIN) from the IRS. An EIN is a nine-digit number that is used to identify your business for tax purposes. It is similar to a Social Security number for individuals.
You will need an EIN if your LLC has multiple members or employees. You will also need an EIN if you plan to open a business bank account or hire a contractor.
You can apply for an EIN online at the IRS website. The application process is simple and free. Once you have applied for an EIN, you will receive it immediately.
Here are some of the benefits of getting an EIN for your LLC:
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It is required for businesses with multiple members or employees.
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It is required to open a business bank account.
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It is required to hire a contractor.
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It can help to protect your personal identity.
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It can simplify your tax filing.
If you have formed an LLC, you should get an EIN as soon as possible. It is a free and easy process that will benefit your business in the long run.
Here are some additional tips for getting an EIN for your LLC:
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Have all of your LLC's information ready before you start the application process. This includes your LLC's name, address, and contact information.
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Make sure that you are the authorized representative of your LLC when you apply for an EIN.
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Keep your EIN safe and secure. It is a valuable piece of information that should not be shared with unauthorized individuals.
8. Open a Business Bank Account
Once you have formed your LLC and obtained an EIN, you will need to open a business bank account. A business bank account is separate from your personal bank account and is used to keep your business finances separate from your personal finances. This is important for tax purposes and liability protection.
There are many banks that offer business bank accounts. When choosing a bank, you should consider factors such as fees, services, and location. You should also make sure that the bank is FDIC insured, which means that your money is protected up to $250,000 in case the bank fails.
To open a business bank account, you will need to provide the bank with the following information:
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Your LLC's name
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Your EIN
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Your personal identification
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The address of your LLC's principal place of business
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The names of your LLC's officers and directors
The bank may also ask you to provide a business plan or financial statements.
Once you have opened a business bank account, you will be able to deposit business income and expenses into the account. You will also be able to write checks from the account to pay for business expenses.
Keeping your business finances separate from your personal finances is important for tax purposes and liability protection. By opening a business bank account, you can help to protect your personal assets and ensure that your business finances are organized and efficient.
Here are some additional tips for opening a business bank account:
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Do your research and compare different banks.
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Choose a bank that offers the services and features you need.
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Make sure the bank is FDIC insured.
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Be prepared to provide the necessary documentation.
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Open the account in person if possible.
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Keep track of your account statements and transactions.
No Worry. We are here to help.
Did our guide on how to start an LLC help you?
If you need more help starting your business, we offer fast, accurate LLC formation online guaranteed. Our services also provide long-term business support to help you start, run, and grow your business.
We can help you with:
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Choosing the right business structure
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Appoint a Registered Agent for your LLC
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Assign a Mailing Address to your Company
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Filing your formation documents
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Getting an EIN
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Opening a business bank account
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Managing your taxes
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And more!
Limited Liability Company FAQs
The package is designed for both non-U.S. and U.S. residents setting up a U.S. company. It provides a complete U.S. company formation and U.S. banking solution with online banking, a debit card, routing number, and ACH. This allows you to sell products or offer services from anywhere in the world using your U.S. company.
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Normal processing time: \$399 one-time fee
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Company registration in 20-30 days.
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EIN processing: 45-60 days (depending on the IRS).
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Bank account: 7-10 days. (no extra fee).
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Expedite processing time: (additional fee of \$99 may apply).
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Company Registration in 1-3 days, in most cases in 24 hours.
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EIN processing: 14 days (depending on the IRS).
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Bank account: 7-10 days.
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We recommend that you choose the expedite processing time option if you need your account set up quickly. The expedite processing time is the fastest way available to get your company registered, your EIN, and your bank account set up.
The expedite processing time option does come with an additional fee of \$99, but we believe that it is worth it for the peace of mind of knowing that your company, EIN and bank account will be set up quickly and reliably.
To launch your US company:
• Copy of a valid passport for each owner.
To open the bank account:
• Articles of incorporation (included in our package).
• EIN letter from the IRS (included in our package).
• A business website that describes which products or services you sell , info about the owner / team and contact information.
You can start a U.S. company even if you reside outside of the United States. The entire process can be completed online, and there is no requirement for you to be physically present in the U.S.
Yes, you can make changes to your order after you place it. Once you have checked out, we will send you two emails:
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Order confirmation: This email will contain all of the details of your order, including the items you have ordered, the quantity of each item, and the total price. You will have the opportunity to review this information and confirm that it is correct.
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Request for passport copy: This email will request a copy of your passport to verify that you are from a non-restricted country. You will need to provide this information in order to complete your order.
After you have reviewed your order confirmation and provided a copy of your passport, you will be able to make changes to your order. You can change the quantity of any item, add or remove items from your order, change the company name or any other information. To make changes to your order, simply reply to the order confirmation email and let us know what you would like to change. We will be happy to make the changes for you.
A top incorporation expert will be dedicated to your company and will handle each step of the process from start to finish. The expert will be available to help you with any questions or inquiries along the way, and they will support you through all the steps until successful completion.
Once the process is completed, your US company will be created and ready, you will have a Tax ID Number (EIN) for the company, a US mailing address, and a Registered Agent. You will also open a business bank account for the company.
You will receive the following:
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U.S. Company:
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Certificate of Organization / Incorporation
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LLC Operating Agreement / Bylwas
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All other corporate documents
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EIN Confirmation Letter
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U.S. Mailing Address
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Registered Agent Information
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U.S. Bank Account:
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Business Bank Account
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Features: Online banking, swift, ACH
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Debit card
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Compliance:
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Set of tools / guide to keep your company in compliance.
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Access to tax experts / CPAs to support you with preparing and filing annual report and tax returns and tax form (if required). Additional fee may apply.
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Delivery:
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All documents will be forwarded to you via email as electronic files.
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The debit card will be mailed by the bank to your US mailing address and forwarded to you (shipping cost may apply).
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The annual renewal cost is $249 + state fee. The state fee varies depending on the state where your company is incorporated.
The following is a list of the state fees:
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New Mexico: $0
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Wyoming: $52
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Florida: $150
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Delaware: $300
The renewal cost includes the following:
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Registered agent renewal for 12 months: This ensures that your company has a registered agent in the United States who can receive important legal documents on your behalf.
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Mailing address renewal for 12 months: This ensures that your company has a physical address in the United States where you can receive mail.
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Compliance pack (self filing): This includes a set of tools and resources to help you file your annual report and keep your company in compliance with state and federal regulations.
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Access to our tax experts / CPAs: If you choose, you can have our tax experts / CPAs file your US taxes for you. The additional fee for this service will depend on your business setup, starting from \$399.
Choosing the right entity type and state of incorporation is an important decision, and there are a number of factors to consider, including your business goals, your personal tax situation, and the laws of the state where you plan to do business.
If you are not sure what type of entity or state to choose for your company, we offer a pre-incorporation consulting session with an incorporation expert / CPA as part of our all-inclusive company formation pack.
During this session, we will help you assess your specific circumstances and recommend the best structure for your business, including:
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Entity type selection
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State of incorporation selection
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Tax strategy
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Compliance
We will work with you to ensure that your company is set up correctly and that you are in compliance with all applicable laws.