LLC Registration
Launch a US company from today. We'll handle all the paperwork.
Launch a US business today from India. Access tools, resources, and US venture capital. Our YC-backed all-in-one platform handles all the incorporation admin work
What Is LLC?
The LLC is a relatively newer form of business entity in the U.S. It was Wyoming that enacted the first formal LLC statute in 1977. The act amalgamated the beneficial features of a partnership and corporations and was based on the 1982 German Code and the Panamanian LLC. Over the years, all states have passed legislation and even modified the acts to afford LLC its present form.
An LLC is a hybrid form of business entity that has selected features of a corporation and a partnership. It has been structured in a way to benefit from the pass-through taxation feature of a partnership along with allowing flexibility in operation and management and yet have limited liability like in the case of a corporation.
In the U.S., the LLCs laws are governed by individual states but are recognized in all. The laws further vary across countries. The “owners” of the company, in the case of LLCs, are referred to as “members.” Usually, a single person can start an LLC and there is no upper ceiling on the number of members.
Why are 60% of Fortune 500 companies incorporated in the US?
Venture capital
Most venture capital funds are located in the United States and are accustomed to working with American companies. Easily gain access to venture funding by incorporating in the US.
Startup infrastructure
The American startup ecosystem is ranked first globally. Incorporation in the US offers access to the best business infrastructure in the world including banking, funding, and accelerators.
US customers
Incorporating in the US helps you build trust with US-based consumers and seamlessly sign US contracts, making it quicker and easier to scale.
Advantages
Registering your company as an LLC has many benefits. Let's take a look at some of the biggest advantages below.
Limited Liability
This is one of the features of an LLC in which it resembles a corporation. LLC provides its owners a protective shield against business debt and liability.
Let’s take an example, there is a shoe store “boot & boot” owned by Jimmy that loses its customers to one of the more fancy store around the corner. The business is not doing well and the company hasn’t paid rent for the last eight months and bills for three shipments of shoes. Thus, “boot & boot” owes approximately $75,000 to its creditors who have filled a lawsuit against the company.
In this case, the creditors have full right to claim the money owed from the company but have no right to Jimmy’s personal assets (bank deposits or gold or real estate). In an LLC, only the company’s assets can be liquidated to repay the debt and not the owners. This is a big advantage that is not provided by a sole proprietorship or partnership where owners and the business are legally considered the same adding vulnerability of personal assets