LLC Executor – What is an Executor of a Limited Liability Company?
The individual or entity that is tasked with forming a limited liability company (LLC) is known as the executor of the LLC.
A limited liability company is a business entity that is formed by the virtues of the presiding state’s laws that grant it the features and legal capacities of a corporation and a partnership.
Similar to a partnership and a sole proprietorship, a limited liability company is a “pass through” entity.
This means that the profits of the business are passed onto its owners and are taxed from the individual income tax returns of those owners unlike in corporations where the profits of the business are taxed before it is distributed to the owners where it is taxed again.
Similar to a corporation, a limited liability company protects its owners from liabilities and obligations the business faces which keeps their personal assets and properties from being taken or reduced to settle the liabilities and obligations of the business.
Forming a limited liability company is easy when you know where and who to get professional advice and assistance from.
It is also possible to form a limited liability company on your own though it is recommended to preserve your time, energy and focus for when you are actually operating your business.
With that said, it is advisable to hire an Employer Identification Number (EIN) or tax expert to handle the company’s papers and official documents for you.
These experts can also answer the questions you have on how to apply for a limited liability company in the state you would like to operate in.
The application procedure is quite simple
Applying to form a limited liability company starts with selecting a name that is compliant with your state’s legal and legislative service (LLS) division.
Ample time has to be spent in naming your business as these will be the words from which your business will be recognized.
It is important to include keywords that will let people know that your business entity is an LLC to comply with the laws of your state.
You can have your business name include the words ‘limited liability company’ or any of the two abbreviations for a limited liability company which are ‘LLC’ and ‘L.L.C.’
The availability of the name you will choose for your limited liability company has to be verified since you cannot legally name it from a name that has already been registered by another business.
You can check in with your state’s business office to know if the name you are planning to select is available for use; from there, the business office of your state can reserve your limited liability company’s name temporarily until your LLC’s organizational documents are filed.
For those who do not have the intention to run their business under its registered business name, a DBA or a ‘doing business as’ name will need to be registered.
A DBA is also known as an assumed name.
A DBA is more frequently known as the trade name.
Once the name of the business has been finalized and is available for use, the articles of organization can be filed with your presiding state.
A registered agent will then need to be designated.
The actual procedure of filing organizational documents to formalize the formation of your limited liability company is fairly straightforward though depending on where the documents are filed, processing times will vary so make sure to completely and correctly fill out and submit your LLC’s documents to prevent any more delays on your part.
Annual fees will need to be paid to maintain a limited liability company with different states charging different fees.
In most cases, the state will require you to submit and file an annual report or yearly statement of information with the concerned government agency.
It is from the annual report that the state bases the cost of the annual fee the LLC will need to pay.
A lot of the reasons why several business owners or entrepreneurs opt to form a limited liability company over other kinds of business entities include its ability to provide personal asset protection, limit personal liability, improve the business’ credibility and the relative ease of compliance thanks in part to having fewer requirements and regulations to comply with compared to corporations and its overall minimal restrictions and casual management agreements.
Out of every reason why people would form a limited liability company, arguably the most important would be its provision of limited liability.
It is through this limited liability that the owners of the LLC, known as its members, are shielded from creditors that will demand and collect payment for all of the financial obligations the business has incurred during its operations even in the event that business starts to shut down or begin its dissolution process.
The right to retain the possession of properties that are owned by another individual until the debt owed by that individual is fully settled, which is also known as a lien, cannot be applied to any of a limited liability company’s members.
You will be in need of the mandatory Employer Identification Number (EIN), which is the number that the Internal Revenue Service (IRS) recognizes your business as for taxation purposes.
A limited liability company cannot have any employees until it has its own Employer Identification Number though the extra processing of that may also be a task that you would prefer to delegate elsewhere while assuring that it gets done right.
GovDocFiling can setup this entire process for you.
With GovDocFiling, all you will need to do is supply the information that is being asked for and to file that information to them.
The complete processing of your requirements which includes obtaining your EIN to have your limited liability company formed can be done and managed by EIN and tax specialists who have the industry experience needed that can spare you from having to face any penalties or fees from incomplete or incorrect documents.
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IRS.gov "Apply for an Employer Identification Number (EIN) Online" Page 1 . July 19, 2021
IRS.gov "Starting a Business" Page 1 . July 19, 2021
IRS.gov "Business Structures - Limited Liability" Page 1 . July 19, 2021
IRS.gov "State and Federal Online Business Registration" Page 1 . July 19, 2021
IRS.gov "Employer ID Numbers" Page 1 . July 19, 2021