LLC Company - About what and why?

LLC is a commercial association whose purpose is to make a profit. Unlike the company we know, LLC has no share capital and the company owners do not hold it through them. Thus, unlike a company, the owners of the LLC are not called shareholders but partners.

However, like the company, LLC has a separate legal personality from its owners. This separate structure ensures limited exposure of the company owners and their assets in the event of a claim or liability of another type. The partners' liability is limited solely to the amount of their initial investment in the company.

The uniqueness of the LLC company is that this separation does not exist from the tax aspect. Although the LLC will submit a partnership report regarding its annual income, the tax liability will not apply to it but to the partners. The main advantage is the enjoyment of tax rates for individuals and the simplicity of procedures.

In fact, LLC is a hybrid creature that combines the benefits of a limited liability company with the tax advantage that partnerships enjoy.

Along with extensive legal protection and tax transparency, it is important to obtain an ITIN number and the LLC also provides bureaucratic relief. The flexibility offered by LLC regarding the composition of the partners and their number, various regulatory obligations, as well as low operating costs - make it an excellent option for foreign investors.

Investing through an LLC has many advantages. Against this background, we strongly recommend receiving professional advice that will help you choose the right form of association for you, taking into account your specific goals and needs. Choosing the right form of investment is the first step towards a profitable investment.

Choose the location of the LLC company

In each of the states of the United States there is a different regulation regarding the manner of establishment of an LLC and the tax aspects that apply to it. The variability is reflected in the requirements of the law for registration purposes, the scope of the fee and the applicability of various state taxes and levies. Because of this, the location of the company is important - its obligations and rights will be derived from the relevant regional laws. An informed choice of the location of the establishment will ensure relief from the regulatory, bureaucratic and tax burden.

This is a critical step in the question of the success of the investment, and we recommend receiving professional advice that will adapt the location to the specific needs of your investment.

Choose a company name

Incorporate company in USA requires choosing a name. Each country has different rules regarding the choice of names for companies, but in general it is possible to point to three basic rules:

1) The name must include the suffix - Limited liability Company

2) The name is available - there is no other company that holds the same name.

3) The name does not mislead to think that this is a government authority.

Obtain an EIN

The Employer Identification Number (EIN) is an identification number for the U.S. tax authorities. Opening an account, opening a file with the Tax Authority and other actions depend on the presence of this number. Therefore, immediately after the submission of the incorporation documents, an EIN number must be issued.