FAQs

Fees associated with Corporation or LLC formation will vary from state to state. Pricing also depends on which package and options you choose. Visit our online Formation Order Form to see pricing, package options, and turnaround time for your state.

When an LLC is formed, an organizational meeting should be held and an Operating Agreement should be established. If this is the case for your LLC, adding to or removing a member will be directed by the Agreement. If you have not adopted an operating agreement or held an organizational meeting, the LLC doesn’t have a formal position on adding or removing members.

An LLC Operating Agreement should spell out the necessary steps for adding and removing LLC members. If there is no formal agreement, you should still document the change in writing and have each member sign that document.

The State where your LLC is active will need to be notified of the change by filing an updated Annual Report. Click the link to let one of our friendly team complete the report for you.

NOTE: Some states allow for filing the Annual Report early. If this applies in your state, filing the early report will update the state database almost immediately. Other states don’t accept early reports, so you would just file the next Annual Report when it’s due to update LLC member names in the state database. If your state does not list Members or have an Annual Report then you will simply need to keep internal records of the change per your Operating Agreement.

You can dissolve your LLC almost as easily as it was to form it. If you order an LLC formation, then decide to close for any reason in the future, you just need to take a few steps to dissolve the LLC.

1.File your “Articles of Dissolution” with the state where your LLC is formed.

2.Remove any remaining money out of your company, close financial accounts, and return funds to the members.

3.Notify the IRS that you’re canceling your FEIN and that you’ll be filing a final tax return for the company.

4.Notify any other appropriate government agencies and vendors that your LLC is no longer doing business. Our Articles of Dissolution filing service will file your dissolution paperwork with the state where your LLC is formed. We’ll also provide you a checklist of important tasks to do to properly shut down the company.

Our Articles of Dissolution filing service will file your dissolution paperwork with the state where your LLC is formed. We’ll also provide you a checklist of important tasks to do to properly shut down the company.

Many clients have questions about taxes and other obligations after they form their LLC. We have written a Business Tax Guide to help guide you and answer your questions.

NOTE: MyCompanyWorks is not an accounting or tax firm and is prohibited from offering tax advice or services. If you have further questions you should consult your tax advisor or call the Internal Revenue Service (IRS). You may also contact your state taxation department for more information.

A Corporation and an S-Corporation are the same “entity” type that includes Shareholders, Directors, and Officers. The Federal government taxes each entity type differently, which is what makes each type unique.

• A Corporation is taxed once on its net profits – currently 21% – and again when those profits are distributed to shareholder(s) as “dividends” – this is called “double taxation”.

• An S-Corporation (“S” means “Small”) has filed a form with the IRS that allows it to not be taxed on the profits; instead, the profits (not including salaries) are added to the personal tax returns of the shareholder(s) and are taxed at the shareholder’s personal tax rate (instead of being double-taxed). Some states require their own small business designation in addition to IRS requirements. The main restriction to organizing as an S-Corporation is that all shareholder(s) must be US citizens and there is a maximum of 100 shareholders.

An LLC is different from the Corporation entity type because it does not have Shareholders, Directors, and Officers. Instead, an LLC has what are called Members, which are the company’s owners. An LLC can choose “Managers” to manage and also assign titles like “President”, “Vice President”, etc. Members can be either a real person or a business entity and there are no US Citizenship requirements.

If you need help choosing the right entity type for your company, read our guide Which Business Entity to Choose.

Giving your LLC a name is an exciting part of the startup experience. Selecting a unique business name will distinguish you from other companies, so naming your LLC is an important step that requires careful consideration. Naming requirements vary by state, but all states require that your business name indicates that you are registered as a Limited Liability Company. There are additional requirements if you want to form a Professional Limited Liability Company or PLLC. You’ll also need to search your state’s business database for name availability. We recommend doing a national search also, especially if you’re running an online or nationwide/international business. The following names and abbreviations are commonly accepted by each state.

• Limited Liability Company

• Limited Liability Co. (Company abbreviated)

• Limited

• L.L.C.

• LLC

• Ltd. (Limited abbreviated)

NOTE: All LLC Business Packages include name searches and reservations.

The turnaround time to incorporate or form an LLC varies by state. It can take anywhere from a few business days to a couple of months, and sometimes even longer.

Step 1 in our online Formation Order Form shows the “Average Processing Time” for your state.

We also offer a Rush Filing service to help speed up the process. Rush Filing can include overnight shipping, hand delivery of the documents to the state, additional fees paid to the state, or a combination of the three. Paying for the Rush Filing service can reduce your wait time from a couple of months down to a week or two.

If you’re planning to do business under your Corporation or LLC’s name, you will not need a DBA (Doing Business As – also known as a Fictitious Firm Name or Assumed Name). If you want to operate your company under a different name, a DBA will be required.

For example, if you are organized under 123 Services, LLC but want to do business as “SuperGeeks” then you must file the DBA or fictitious name statement. Some companies operate multiple companies under one Corporation or LLC, so each one is named with a separate DBA. So 123 Services, LLC could manage SuperGeeks, Mobile PC Repair, and Macs-R-Us.

If you need to file for a DBA, we can file your DBA in any state or county with just a few clicks.

It’s easier than you may think to set up an LLC. When you use our Online Formation Order Form, you’ll be able to see the estimated turnaround time and what’s included with each formation package. Start right now and our fast and friendly team will help you form an LLC in any of the 50 states or DC.

Yes! All 50 states and DC recognize 1-person or single-member Corporations and LLCs. Many of our clients are “1-person” companies. Click here for more information on how the IRS taxes a 1-person Corporation or LLC.

Get started with setting up your 1-person Corporation or LLC on our Online Formation Order Form.

We’re not allowed to advise in which state you should form your company. You can ask an attorney or accountant if you need help making that decision. Most of our clients form companies in their home state for a few reasons.

1.Formation and maintenance fees are usually lower when you operate in your home state. Starting a company in another state means you’ll have to “foreign qualify“, which means you’ll have to pay taxes and fees in two (or more) states instead of just one.

2.Incorporating or forming an LLC in your home state keeps banking, laws, etc. simple to keep your business in compliance.

3.If you plan to continue living in your home state, you’ll save on travel and other remote-work related costs, insurances, etc.

There are a couple of “business-friendly states” like Delaware, Nevada, and Wyoming. Many of our clients choose to form companies in those states, even though there are additional requirements. Review our guide: Which State to Choose? for a comparison and more information.