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          Start an LLC

          Incorporating as an LLC is a popular choice among business owners. Learn more about forming a limited liability company today.
          Want help?Call us at (888) 627-1186
          Gary J. | Founder, Green Energy Solutions
          Started an LLC using Rocket Lawyer in June 2012

          How to Start an LLC

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          Answer a few simple questions

          Tell us a little bit about your business.

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          We do the paperwork for you

          We reserve your company's name and take care of your LLC filing.

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          You're done!

          We store your documents in your account and send you hard copies.

          Benefits of Forming an LLC with Rocket Lawyer

          Limited Liability

          By definition, an LLC keeps your liability as a business owner limited so that your personal assets are protected. Let us help you through the process from start to finish.

          We Make It Simple

          We'll check your LLC name, file your paperwork, and follow up with your state. All you need to do is tell us a little bit about your business.

          LLC Specialists to Answer Your Questions

          Our specialists have incorporated thousands of businesses just like yours. They can walk you through the entire LLC process by phone and answer any questions you have.

          Legal Help After Starting Your Company

          Whether you need to connect with a lawyer, create an LLC Operating Agreement, collaborate with your co-members, or need help staying compliant, we're here to help your business grow.

          Our Promise

          rlGuarantee

          If you're not completely satisfied with your LLC incorporation, we'll give you a full refund.

          What Does Forming an LLC Mean for My Business?

          Spend Less Time Doing Paperwork

          Simply put: Limited liability companies have less corporate governance requirements than other entity types. You'll spend less of your energy filling out compliance documents and more of your time running your company.

          Protect Your Personal Assets

          By incorporating as a limited liability company, you separate your business assets from your personal ones. That means your company holds the liability if something goes wrong and your personal assets are protected from lawsuits.

          Enjoy Management Flexibility

          No other entity gives you the ownership and management flexibility of a limited liability company. You'll be able to set up your unique company the way you want to with just a simple LLC Operating Agreement.

          LLC vs. Corporation: What's the Difference?

          Compare the advantages and disadvantages of each business entity type to find the one that's best for your company.

          LLCS-CorpC-CorpNon-ProfitSole Proprietorship
          Managing your company
          plusLimited liability protection
          LLC members are not personally responsible for the company's debt or liability. S-Corp shareholders are not personally responsible for the company's debt or liability.C-Corp shareholders are not personally responsible for the company's debt or liability.Non-Profit directors are not personally responsible for organizational debt or liability.Sole Proprietors are personally responsible for debt and liability.
          plusPerpetual existence varies
          With the proper planning, limited liability companies can exist for generations.S-Corps continue to exist even if the owners or majority shareholders leave or pass away.C-Corps continue to exist even if the owners or majority shareholders leave or pass away.Non-Profit organizations and institutions survive after their directors leave.Sole Proprietorships do not exist when the owner quits or passes away.
          plusFavorable for raising capital varies
          Limited liability companies can raise money via banks and investors but cannot sell stocks.S-Corps can get loans from banks, as well as distribute stock to up to 100 people.C-Corps have the easiest time raising capital as there is no cap on how many people can own stock. Non-Profits can both get loans and receive tax-deductible donations.Sole Proprietorships can occasionally receive bank loans but cannot sell stocks.
          plusManagement flexibility
          Limited liability companies allow for a large variety of management structures based on your specific needs. Management structures for S-Corps are largely dictated by state and federal law.Management schemas for C-Corps are largely dictated by state and federal law.NPOs need to follow strict management laws to guard their non-profit status.Since Sole Proprietorships have only one member, there is no management structure.
          Tax Considerations
          plusPass-through taxes
          LLC members are taxed on their personal tax returns. The LLC itself is not taxed.S-Corp shareholders are taxed on their personal tax returns. The company itself is not taxed.C-Corps are taxed both at the corporate level and again on shareholders' individual returns. Non-Profits are taxed on a corporate level but may also enjoy a host of tax-exempt benefits.Sole Proprietorships are taxed only on their owner's tax return.
          plusDouble taxation
          Since limited liability companies can be a pass-through entity, owners are taxed on their personal income.S-Corp shareholders are taxed personally. The S-Corp, however, is not. C-Corp income is taxed at the corporate level first, then again at the personal level. This is called "double taxation."Non-Profits are only taxed once and can write off most of their expenses.Sole Proprietors are taxed only on their personal tax return.
          plusTax exemptions
          Limited liability companies can claim deductions but not tax-exempt status. S-Corps can claim deductions but not tax-exempt status.C-Corporations are not tax-exempt entitiesNot only are donations to Non-Profits tax-exempt, but NPOs can themselves apply for tax-exempt status.Sole Proprietorships are the least official business entity and cannot claim tax exemption.
          State government fees
          plusFormation fees
          Limited liability companies must pay state fees during the incorporation process. These fees can be deducted from taxes.S-Corps must pay state fees to legally incorporate. These fees can be deducted from taxes. C-Corps must pay state fees to become legally recognized. These fees can be deducted from taxes.Non-Profits pay state fees when they incorporate. These fees can be deducted from taxes.Since Sole Proprietorships aren't incorporated entities, they don't pay formation or compliance fees.
          plusCompliance fees
          While limited liability companies have less compliance requirements than other entity types, there are reports and licenses that need to be filed and maintained.S-Corps usually will need to file reports and pay compliance fees on an annual or semi-annual basis.C-Corps generally must file reports with their state, as well as a host of other regulatory and compliance fees.Non-Profits have more compliance responsibilities than other entities as they must continually preserve their tax-exempt status. Sole Proprietors do not have ongoing compliance fees.
          Need help?

          Talk to an LLC specialist.

          (888) 627-1186

          Create your LLC

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          Create your S-Corp

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          Create your C-Corp

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          Create your Non-Profit

          Start NowStart Now

          Create a Limited Liability Company Today

          Your LLC will give you the freedom to choose how your company runs and avoid being subject to the strict compliance laws that other business entities have to deal with. When you form a limited liability company with Rocket Lawyer, your membership includes help from seasoned attorneys and all the documents you need to start your business right and grow it.

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