What is an LLC and how are they used? What does LLC stand for? | LLC University®
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- เผยแพร่เมื่อ 3 ส.ค. 2024
- What is an LLC and how does it work? Learn about the meaning of LLCs.
LLC stands for Limited Liability Company.
A Limited Liability Company, most commonly called an LLC, is a legal business structure that protects your personal assets (your home, car, and personal bank accounts) in the event your company is sued.
0:07 - What is an LLC used for?
0:15 - What are LLC owners called?
0:18 - How many people can own an LLC?
0:27 - How is an LLC created?
0:36 - What is the main reason people form an LLC?
1:19 - Common mistakes people make when talking about LLCs
1:59 - What's the difference between LLC vs Corporation?
2:40 - LLCs are affordable to set up
3:05 - An LLC has low maintenance requirements
3:33 - What are the steps to forming an LLC?
WHAT IS AN LLC?
LLC stands for Limited Liability Company. An LLC is a legal entity that protects your personal assets if your business is sued.
An LLC is a Limited Liability Company. It is a legal entity (business structure) that is created by state law.
An LLC can be used to run a business, or it can be used to hold assets (such as real estate, vehicles, boats, or aircraft).
LLC Owners Are Called "Members"
The owners of an LLC are called "members".
An LLC can be owned by one person (called a Single-Member LLC).
Or an LLC can be owned by two or more people (called a Multi-Member LLC).
The LLC is created by filing LLC Formation Documents with your State and paying the filing fee.
WHY FORM AN LLC?
The #1 reason to form an LLC is for personal asset protection.
By forming an LLC you create a “protective wall” between your business and your personal assets.
Your personal assets include everything that you own: your home, cars, trucks, bank accounts, investment properties, boats, jewelry, etc.
AN ATTACK ON YOUR ASSETS
If your LLC is sued, creditors can only attack the assets of your LLC to settle those business debts and liabilities.
Your personal assets are safe and secure.
They are not considered a part of the business.
Again, without forming an LLC, your personal assets are at risk if your business is sued.
SPEAKING THE LLC LANGUAGE
There are two common mistakes people make when talking about LLCs.
"I want to form a Limited Liability Corporation."
You cannot form a Limited Liability Corporation. There is no such thing. An LLC is a Limited Liability Company.
Or “I’m going to LLC myself.”
Again, this is incorrect. You cannot do that. You can't "LLC yourself".
But, you can form an LLC for your business. An LLC is "separate and apart" from you. It is not you.
You form the LLC. Then you own and manage that LLC.
It's important that you understand the difference in these terms so you don't sound like an idiot and can speak intelligently about your business.
LLC vs CORPORATION
A lot of people ask us if they should form an LLC or form a Corporation.
Let's discuss the major differences.
LLCs don't have to elect a board of directors; Corporations do.
LLCs don't need to hold board meetings; Corporations do.
LLCs don't have to keep records of all their meetings; Corporations do.
LLCs are not subject to double taxation; Corporations are.
LLCs can distribute profits however they want; Corporations can't.
In short, LLCs are the most popular and the most flexible business structure for business owners, entrepreneurs and real estate investors.
LLCs are also inexpensive to setup. You'll pay a one-time filing fee with the state to create your LLC.
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To learn more about LLCs, visit LLC University®: www.llcuniversity.com
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DISCLAIMER
This information is provided for educational purposes only and in no way constitutes legal, tax, or financial advice. For legal, tax, or financial advice specific to your business needs, we encourage you to consult with a licensed attorney and/or CPA in your state.
LLC University® is a registered trademark of LLCU Media Group, LLC.
© Copyright LLCU Media Group, LLC. All rights reserved.
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Hey folks, make sure to check the site for most up-to-date information: www.llcuniversity.com/what-is-an-llc/. Or select your state and start forming your LLC with our free guides: www.llcuniversity.com/
Successful people in the making watching these videos, go get your dreams :)
So true!
🥂
Ngl means alot ,made my day ❤️❤️ thanks bro
I needed that. Thank you
Yes true thank you
I really appreciate your work and efforts. Clear and concise information and No nonsense.
Thanks so much! Glad you liked it.
To everyone watching the video, I wish y'all thriving, growing and big businesses!💸🗺️
Thanks for the positive vibes King! Same to you!
I've been searching on Internet what is llc but I found this really helpful in simple terms 💟
Awesome, glad to hear that!
I love videos like this , very clear and to the point
Thanks! Happy to hear that :)
I'm glad I found this channel! I'm going through all of these videos before I form my LLC! Thanks for the great advice.
Fantastic! Thank you :) Make sure to check our website too... much more info there. It's easier to write content than make a video ;)
Dude: I have learned form this video much more that all the freaking FB reels i have watch over 1 year. Thanks so much.
LOL... thanks so much! Glad we could help :)
Wow this was the most clear concise and informative thing I have ever heard in my life thank you so much Angel
Thank you so much for such a lovely comment! You're SO welcome! So glad it was helpful!
Thank you so much for this video, made everything make so much more sense!
Hey! You're very welcome. Awesome to hear that. By that way, love your channel name! Also, you might dig our learning center: www.llcuniversity.com/learning-center/. Lots of helpful resources for getting your head wrapped around all this LLC stuff ;)
So so so so soooo helpful. Thank you for explaining this in such a simple way. 🙏🏼
So so awesome to hear ;) You're very welcome Lissette!
Thank you for explaining LLC's simple for understanding.
You're welcome Jacqueline!
Very simple and good explanation. Thank you very much!
You're very welcome Radhwan!
Thank you!!, this is simple and and to the point with examples to help understand better this is great! CHASE DREAMS FRIENDS
You're very welcome! Thanks for the kind words :)
Thank you for video! You explained it very well👏🏾
You're very welcome Keema!
This is one of the best explanations of an LLC love it.. also became a new subscriber Thank you.
Fantastic! So great to hear. Thanks Alfred :)
2 thumbs up excellent answers for your videos websites outstanding thankyou
You're very welcome!
Oh, Ryan. It's great to see you have found a new career after leaving The Office. Hope you remain in contact with Steve Carell. Great video, BTW :).
HAHA, I've gotten that a few times ;) You're welcome!
my thoughts exactly
Love this channel
Thanks so much!! ;-)
appreciate the information!!
You're welcome :)
THANK YOU!
You're welcome :)
Thanks for this clear and important lesson
U r the best lecturer
Keep up men we love u
You're very welcome. Thank you :)
thank you very much....for your help....
You're welcome Asif.
Thanks bro 🙌
You got it Keith!
Thank you!
You're welcome!
Thanks so much.
You're welcome Marlo!
Thank you 🙏
You're welcome :)
Thanks for the information?
You're welcome Raven!
Thank you.
You're welcome!
Well explained sir
Thanks Rudy!
Today was the first time actually looking up what LLC is. My buddy mentioned it to me twice and in order to understand better then I came here and I like the idea. Question is how can I get started or starter ideas. I'm going to look into this more. Thank you...
You're very welcome. Check out our website: www.llcuniversity.com/ - We have even more resources there :)
LOVE YOU BRO HAHA, why are you laughing here and there! Your great bro 😂❤
LOL, thanks man!
I’ve been asking people about Llc and no one wants to help for free. Thank you for all your input. This explains very good what I was going to get charged 50 bucks with a person . My question here is, I’m opening a business with my friend. We’ll both be on the LLc . I already file taxes with my husband, how would all this work ?
You're welcome Sindy! This new LLC of yours would be a Multi-Member LLC. By default, Multi-Member LLCs are taxed like a Partnership.
That means, the LLC files a 1065 Partnership Return each year. This shows the IRS how much money was made (and expenses, credits, and deductions) and then it also shows how much all of the Members made. That amount "pass through" to each Member's personal tax return and it's your/their responsibility to report that on your personal tax return; the 1040. Hope that helps!
great videos and I subbed!! Do you provide this information in video form in Spanish?
Awesome! You're very welcome :) Not yet, but maybe in the future ;)
good video
Thanks :)
❤❤❤❤
Thank you :)
Can your submission for an LLC be denied? If so, why? Love your videos!
LLCs are usually rejected for two main reasons. The name is already taken, or you left something blank. So most of the time, filings are approved. The states aren't trying to make it difficult to form LLCs.
Thanks for the info. I'm just curious I've been wanting to open a LLC in Delaware but I'm an Asian. but I've read your article "why you shouldn't form an LLC in Delaware". Now I'm thinking how and where can I form a LLC as a foreigner? It's for an online business.
You're welcome. That video is really for Americans, but we didn't do a good job letting that be known. As a non-US resident, you can form an LLC in any state you'd like if you're going to operate the business from outside the US. If you'll have an office, repeated physical activities, or employees, you'll want to look at forming an LLC where those activities take place (that's where the LLC will be "transacting business").
We have LLC guides for every state here: www.llcuniversity.com/50-state-llc-guides/.
How you form an LLC is just like a US person. However, how you get an EIN Number (Federal Tax ID Number) and open a bank account are different.
Here's instructions on the EIN: www.llcuniversity.com/irs/how-to-apply-for-ein-without-ssn/
Here's info on banking: www.llcuniversity.com/foreigners/open-us-bank-account-llc-non-resident/
And if you are the only owner of your LLC (a Single-Member LLC), you need to file 5472 each year with the IRS: www.llcuniversity.com/irs/form-5472-foreign-owned-llc/
Hope that helps!
@@llcuniversity thank you so much for your help for everyone. I really appreciate it,
You're very welcome. Thank you!
I plan to open a business. Do I focus on forming the LLC first, or planning the business first? Thank you for your videos btw.
Hi Kristania, it's really up to you. Both ways work. Feel free to stop by our website or google "LLC University + your state" and look over the filing instructions to see how much time it will take. Hope that helps.
Mentor , what will be the best entity for my and my friend Transportation business ( we have drivers and we provide survice for transportation ) ?
Hello, there is a general "best entity" answer. It depends on the details. We do discuss LLC vs. Corporation here though: www.llcuniversity.com/llc-vs-sole-proprietorship-vs-corporation/
I' just recently opened my store with bigcartel ....setting up the checkout option required me to have an EIN. My question is should I file for an LLC? Do I need a sellers permit in Alabama?
Hi Alexis, if you've already submitted an EIN without forming an LLC, that EIN is for you personally, as a Sole Proprietorship. Forming an LLC keeps your business assets and personal assets separate, therefore protecting your personal assets if your business were sued. Yes, you most likely need a seller's permit in AL. Here is our free course on forming an LLC in AL: www.llcuniversity.com/alabama-llc/. Look in the sidebar for all the lessons/steps. Hope that helps. Let me know if you need anything else.
I unknowingly filed for an EIN number as a sole proprietor when I did not know anything about LLC's. Now im wondering if I should begin the process to change the company to an LLC and if I need to file for an assumed name before I do so? Help please cause im totally lost
Hey Jeannette, I'm glad you found us before you went too far lol! So many people screw this up because they are misinformed (a lot of poor websites out there!)...
You don't need to "change/convert" anything. There isn't an official "Sole Proprietorship to LLC" conversion.
You just cancel the Sole Proprietorship EIN (instructions here: llcuniversity.com/cancel-ein) and then form an LLC.
Once the LLC is approved, get a new EIN and just start operating as the LLC.
Also, you do not need to file for an assumed name (another mistake often made when forming an LLC). You'll just do business under the full name of the LLC.
I also just saw the email you sent us. I replied with a link to our free Texas LLC course.
Hopefully this reply is helpful! Let me know if you need anything else.
Hi Matt, would you please shine some light on another question I have? If I already formed a LLC, namely a company, but also want to form a design studio under the company to provide architectural design service, do I need to register another LLC just for this design studio, or can I use the LLC I already formed for tax purpose, but register a Service Mark or something to that effect for the studio so nobody else can steal its name?
Hi Darren, you don't have to form another LLC (although you could to separate liability). 1 LLC will also work. And yes, you are correct; you could file a national service mark to protect the name. Hope that helps!
thank you Matt. Very helpful!
You're welcome Darren!
Hi again lol I really need some advice! So as of right now I am currently shopping for my online boutique. I have found wholesale distributors who require that I have either a resellers permit/license, EIN or both before I can purchase anything. I don't know where to start or what I even need!
Hey Alexis, did you go through our free Alabama course on our website (www.llcuniversity.com/alabama-llc/)? It'll help in the understanding of all of this. But in short, you need to file your LLC first, wait for it to be approved, then get your EIN and resellers permit... then you can provide that info to the whole distributors you've found. Hope that helps! Let me know if you need anything else.
Do I really need to form an LLC? Like what happens if I just go ahead and try to do business with just an EIN? It's just so costly I'm just starting out😩
Hi Alexis, no, you do not need to form an LLC. It's not a requirement. It's just popular among business owners to limit their liability in case of a lawsuit. You can also operate as a Sole Proprietorship (you can, but don't have to, register a DBA in AL) and then get an EIN and your permit.
I'm sorry I don't want to sound stupid but is a sellers permit the same as a resellers license? Sorry I'm really young and I'm starting this business on my own alone and I have a lot of questions...thank you for being so helpful and patient
Hi Alexia, it depends on the state. I don't have the full details of Alabama memorized, but our partner company can help: www.businesslicensesolutions.com/licensesuite-llc-university/. You can also check with AL Dept. of Revenue: revenue.alabama.gov/licenses/faqpl.cfm. Apologies I can't be more specific here.
I wish they would've taught something like this in high school anyways..
How do you find out if the city you live in will allows you to start a business? And if it does how do u find restrictions and prerequisites etc etc??
I know, right! This is America. You can just start a business. Cities don't "prevent" businesses from being formed. Depending on your business activities, you might need a permit or license, however, that's done after the LLC is formed.
When you register a llc. If you only have one property. Which is my home. Will that property be property be protected from suit? Or should I have a PO box? Thanks
Hi Dmax, a PO box address doesn't provide or limit any liability protection offered by an LLC. For example, if your LLC is used to operate a business and your business is sued, generally speaking, your personal assets would be protected. That would include your home and anything else you own.
So an LLC a separate entity from the company it handles? And not an extension/attachment of that company?
Like, my Financial Management Firm and LLC are two separate companies?
Hi Dave, it's easier to think of it like this: the LLC is a separate legal entity from yourself. Within that entity, the entity engages in business activities. In this case, financial management services. However the LLC is rendering/offering the financial management services. Hope that helps :)
the company where I work is forming an LLC and they asking the contractual employees to pay the fee. is that legal?
This doesn't even make sense to me, so I'm not really sure how to answer. Why would you join an LLC and sign an Operating Agreement that you don't understand? I would advise speaking with a few attorneys on this one. Sounds a bit weird to me.
I have recently bought a screen printing business, should I apply to make it an LLC?
That's up to you. You can if you'd like. If you check out the "learning center" on our website there are a lot of helpful articles to help you decide... and to check out the pros and cons, etc. Hope that helps.
I have a lot of money in dividend producing Stocks, ETFs, and Mutual Funds. Would it be worth it to me to form an LLC?
Hi Perry, we're not sure. We don't deal a ton with LLCs for that purpose. Thanks.
If I understand correctly, the benefits of creating an LLC is to protect personal assets but then my question is. Someone can also sue you the individual right? and then your assets are on the line. So the whole thing is if someone sues your company, your company assets are on the line and if someone sues you personally your personal assets are on the line. The advantage I am seeing here is you dont have all your eggs in one basket. Am I correct on this? Is there a way to protect your personal assets as well so that someone doesnt get access to it?
Hi Dezo, you are correct. The best way for what is sometimes called "inside" protection and "outside" protection is to meet with an asset protection attorney. There are numerous strategies and ways to set things up and it depends on the state you're in, whether you're married, and lots more. Hope that helps.
Hello! I'm currently a student, and I plan to create a business as a freelance illustrator and want to hire a couple of other artists to create a graphic novel, but I have a couple of questions.
Firstly, is an LLC a good idea for a personal freelance business? I would eventually like to create a studio for producing and printing graphic novels but not for several (5+) years down the line.
I want to create contracts for the artists I hire. If, for whatever reason, the project gets disbanded and suing becomes a reality (whether from the artists or other entities), what are the kinds of things I can protect in my LLC regarding my business ideas? I understand that physical assets like real estate will be protected, but what about things like trademarks, copyrights, etc.?
Hey! LLCs are very common and popular for freelance business and that's the entity I'd use. If the LLC owns trademarks and other intellectual property, because they are owned by the LLC, they could theoretically be at risk during a lawsuit. What larger companies sometimes do is setup 2 companies. One is the operation company (owns no IP) and the other it the IP company (has no operations, no contractors/employees, etc. It just owns IP). Then the IP company licenses the IP to the operations company. Might be overkill for what you need, but it could be done with 2 LLCs and a simple licensing agreements (and monthly, quarterly, or annual payments made). Hope that helps.
Can I use any name or is there a list somewhere of business names or brands that are taken?
You can use any name, so long as it doesn't already exist in an identical format... and your name also has to be "distinguishable". We have info on our site on how to search for your name: www.llcuniversity.com/llc-name/
hello and thank you for all valuable information.
do you confirm this?
A single member LLC that elected to be a disregarded entity (a default election) would only pay tax based on the tax status of the owner. Since the owner is not physically present in the US and is providing services remotely there would be no income effectively connected to the US. That means the LLC would owe no US tax, except for the annual registration fee in the state of LLC registration, and there would be no US federal tax obligation (in other words there is no requirement to file income tax either).
Hello, yes, the tax responsibility of a Single-Member LLC (disregarded) falls on the the owner. The definition of effectively connected is complicated. It's not a simple yes/no answer. It depends on many factors. It is best practice to speak with a few different accountants who work with non-US residents. Check out GW Carter, Ltd. in Minnesota. You'll also want to look at the tax treaty between the US and your country of residence. Even if you don't have to file a US federal return, you still need to file Form 5472 + Form 1120 (used as cover sheet)... they are informational returns. We have info on that here: www.llcuniversity.com/irs/form-5472-foreign-owned-llc/. Hope that helps.
@@llcuniversity thank you very much!
extremely valuable information!
@@llcuniversity what i know for sure from here is the treaty between usa and my country says that as a non usa resident that have no physical presence in anyway in usa (a physical warehouse for instance) they don't have to pay US federal taxes as they pay taxes to their home country. (thats from my accountant here its checked and correct)
Hey, thanks for the update. Awesome that you were able to get a helpful answer from your accountant. Thanks for sharing. We will have information on our website in the near future for non-US residents forming LLCs in the US. So thanks for sharing your experience.
@@llcuniversity honestly it is the first time after months im searching on this that i found really valuable credible useful and legit information so thank you again.if i can say anything is that i highly reccoment your team for any bussiness advices they might need!!
Can you create multiple LLC spreading out assets from being sued?
Hi David, yes, you can create multiple LLCs. And each LLC can own different assets.
If I were to make an e-commerce website for clothing should I make an LLC?
Hi, we're unable to say which entity someone should or shouldn't form. However, if you don't form a legal entity, you'll be operating as a Sole Proprietorship. We've written about Sole Proprietorship vs LLC here: www.llcuniversity.com/llc-vs-sole-proprietorship-vs-corporation/. Hope that helps.
Hi sir. Companies without an LLC Will risk to lose their person assets right? But what if i have an LLC and Gets sued because someone Gets Hurt themself using the product i sell. What is the worste thing that can happen to me with an LLC?
What's the worse thing? That would need to be discussed with an attorney. Too long to answer here. The LLC will protect your personal assets in the event your business is sued.
If you are a resident not working , could you be added to a llc of someone who is not a resident of the US?
Yes, but not unless you also agree.
Sorry I'm confused. So if I buy a camera or a car, or a pizza or etc, do I pay tax on these items with the LLC?
How do they know if what i'm buying is just for personal use and not the business?
Is it the case that if I buy things with my personal checking account, then I won't have to report that on my taxes?
or is it the case that whatever I buy will be taxed on the LLC... please help.
It's not so much that "they will know". It's if you are audited, then they will discover write offs that are not allowed. Also during an audit, you are under the penalty of perjury. So if you lie, there can be serious consequences. Either way, if audited, you'll likely lose those write offs and owe taxes, in addition to fines and penalties. From your perspective, a business expense should be a legitimate business express. Personal expenses should be kept separate. Hope that helps.
Can one person start a graphic novel company (Paper back and hard cover comic book series as complete stories.) as an LLC ?and can I hire whom ever I want ?,or could the government do unusual quotas like force me to hire more French if I have to many Dutch employees? The government dose strange things. I'd like to one day have a private family company with as little government intervention as possible.
Hi Jason, yes, that business can be ran through an LLC. And yes, you can hire whoever you want.
So I'm making a video game company would this be the right route to go?
We can't comment on what is the right path for you and your business, however, check out this info on LLC vs. Corporation vs. Sole Proprietorship: www.llcuniversity.com/llc-vs-sole-proprietorship-vs-corporation/. Hope that helps :-)
Can I transfer property that I own in my own name to an LLC that I own?
Hi Fred, yes, however, it's easier if the property doesn't have a mortgage. We made a video on this here: th-cam.com/video/03IK5wtv_5g/w-d-xo.html. Hope that helps.
Can you use the word "limited" at the end of an LLC?
It depends on the state. Each state has different laws as to what designators ("endings") are allowed. Check out our state guides: www.llcuniversity.com/50-state-llc-guides/ > select your state > look for "detailed lessons" towards the top > click on the LLC Name lesson. Hope that helps!
I accepted a job at a pool service business. Its a 1099 position. Should i form an LLC for this ?
Hi Nicholas, you can if you'd like, but it's not a requirement. If you feel there is liability exposure, it may be something to consider. If you do, you'll want to make sure your contractual relationship is between your LLC and the pool service business. Hope that helps.
Im going to LLC myself
Haha, you better not! ;)
So I am wanting to open a company with construction where I get jobs and sub the work out for a percentage of total cost. Would I need a contractor license or could I get away with a LLC?
Hello, not sure about whether or not you need a contractor license. Outside our wheelhouse.
Would my wife be forced to sign with me as a member of the LLC even if she wants nothing to do with my company?
Of course not. I don't think there are very many cases where someone is forced to sign anything that they don't want to.
LLC University I know that sounded like a stupid question..lol... what I ment is : Because i am married, if i make an LLC and i file jointly our taxes, will I have to include her in my LLC just because we are married... Can i just go it alone then when it comes times for tax filing I can just add the LLC distributions as additional income.
A single-member LLC is taxed on profit earned, regardless if it's distributed or not. Just an FYI. A multi-member LLC will be taxed the same way (unless it elects to be taxed as an S-Corp or C-Corp). If your wife isn't an actual member/owner of the business, then no, you don't need to add her. What state are you and your LLC in?
LLC University Thank You for that information, good to know. I am in Georgia.
You're welcome. I asked about the state to see if you were in a community property state. You're not though. As an FYI, there is a thing called a Qualified Joint Venture with the IRS (www.llcuniversity.com/irs/qualified-joint-venture-husband-wife-llc/), but it's not applicable to Georgia.
what type of buissness entity would an nonprofit organization fall into. what would be best?
A non-profit is typically a non-profit corporation. Some state do have low-profit LLCs though.
if we register an LLC , let say with my brother, should we also get a Business License ?
The business license is needed if your city, town, or county requires it based on the LLC's business activities.
@@llcuniversity thanks for the reply , so there is no such thing such as " General Business License" right ? because we couldn't get it anywhere ...there's only a specific business license like a dealer, a florist , exporter , etc
It all depends on the jurisdiction. Some states do have a general business license and some cities do too. And sometimes you may need a general license + a "specialty" license. There are thousands of licensing jurisdictions in the US (state, city, etc.), so we're not able to provide specifics at this time. Thank you for your understanding.
@@llcuniversity thanks you guys awesome
You're welcome :) Thanks!
Can Someone open n use n LLC by using a no.thats not theyred n have no business using explain to me cause I am not paying they're bill.any advice.thank u
What do you mean by having a number that's not theirs... what kind of number are you referring to?
as a SMLLC are your personal assets still protected?
Hi Korea, yes, a Single-Member LLC still limits the liability to the LLC and not the owner.
@@llcuniversity thank you 😊
I’m an Uber driver, can I just form an LLC so I can write checks to myself? cause you can’t use Uber/lyft income at dealerships
Yes, you can use an LLC for your business. And the LLC can pay you via a check or direct deposit (or any other means). In a Single-Member LLC, that payment is called a "draw". Hope that helps.
Can I use an LLC for my home?
Yes, you can. Tip: If you're getting a mortgage, there is more work to do to find a lender will lend to the LLC. And rates might be slightly higher.
😈💯💯💯💯💯💯💯💯💯
Thanks Ganja!
I’m still lost is a llc a business license
Hey Diamond, good question. Explaining intangible things can be a bit tricky, but hope this helps... Rather than thinking of a business as "one thing", think of a business as a collection of activities carried out with the purpose to earn a profit.
On the other hand, an LLC is "one thing", it's a legal entity. This legal entity can be used to run a business or it can be used to hold assets (like real estate, boats, cars, etc.). So an LLC doesn't have to run a business, but it certainly can, and most business owners do choose to setup an LLC to run their business (for personal liability protection). We have some info on the LLC's asset protection here: www.llcuniversity.com/llc-asset-protection/.
Just saw your edited question. No, an LLC is not a business license. A license is the right to do an activity which is regulated. So if you form an LLC, you would do that first, wait for your LLC to be approved, then get a business license for your LLC, if the industry you work in requires it. On the other hand, if you don't form an LLC and you operate as a Sole Proprietorship, the business license would be granted to your personally instead of your LLC. We have a video on Sole Proprietorship versus LLC here: th-cam.com/video/3J7HG6IuV_c/w-d-xo.html
If I form an LLC does affect me being that I am in another country.......I live in Jamaica
You can form an LLC in the US while living in Jamaica. No issues :)
We have content on our site for non-US residents:
www.llcuniversity.com/irs/how-to-apply-for-ein-without-ssn/
www.llcuniversity.com/foreigners/open-us-bank-account-llc-non-resident/
www.llcuniversity.com/irs/form-5472-foreign-owned-llc/
I am from India, can I own and manage an LLC..
Yes, you can :)
. Can you have LLC for non profit.
LLCs are not often used for this purpose. Plus, an LLC can't get non-profit/tax exempt status from the IRS unless the LLC is already owned by a tax-exempt entity. Hope that helps.
Now, what's a GmbH?
It's a German entity.
why do they ask for ur social number ?
Hi Kenneth, that's how it works. The EIN Responsible Party must list their personal Tax ID Number. You can find more info by googling "LLC EIN Responsible Party" and looking for our article which goes into more details. Hope that helps.
@@llcuniversity THANKS
@@higherselfhighestself283 - You're welcome :)
Why big companies like apple, Microsoft, Google aren't llc
When companies go public, it's far easier to issue shares with a Corporation and create different voting classes.
Why do people who teach suck at it?
Hi Darell, are you referring to our video or making a general statement? If it's our video, please let us know what could have been better. Thank you.
@@llcuniversity i'm sure he's speaking about others, the institution i'm studying at, played this video to explain what LLC is.
@@ramu992 - Thanks Ramu! That is wonderful to hear :)
Thank you 🙏🏼
You're welcome :)