Category: LLC

LLCs in the US offer flexibility, liability protection, and global business respect. Yet, to remain legitimate and active, the company must comply with the law, and, in particular, the state law.

The most important document that states your company is active is the Certificate of Good Standing. Banks, foreign authorities, prospective business partners, and even investors demand this document to show that your company exists and appropriately complies with the law.

In this post, I will describe what the document is, what its components are, the reasons it is important, who specifically needs it, and how to get it if you run your company outside the US.

What is a Certificate of Good Standing?

A Certificate of Good Standing (or, in some states, Certificate of Existence, Certificate of Status, Certificate of Authorization) is a document issued by the Secretary of State or relevant state authority of the state where your LLC is registered.

This confirms that your business:

• Was legally incorporated under that state’s laws,
• Has met all yearly filing obligations,
• Has settled all applicable fees and state taxes,
• Is permitted to operate, and
• Is not suspended, revoked, or dissolved.

In a nutshell, this shows that your business remains active, compliant, and in good standing.

For instance, certificates provided to businesses that registered their LLCs in Delaware would come from the Delaware Division of Corporations. In Wyoming, it comes from the Wyoming Secretary of State, and so on.

This document indicates to the world, including potential financial institutions, customers, and collaborators, that your business is orderly and operational.

Why You Might Need a Certificate of Good Standing

Although this may not be essential for your day-to-day functions, it may be necessary for certain business transactions and compliance checks. Below are the scenarios when you would need a Certificate of Good Standing.

1. Opening a U.S. Bank Account

Most U.S. and foreign banks will ask for a current Certificate of Good Standing when an LLC is trying to open a business community bank account.

This document assures the bank that your business is legally registered and in good standing with all state requirements.

For business owners that live in another country, this may be required during verification with banks, whether you are doing it online, in person, or using other methods.

2. Registering Your LLC in Another State

If your business wants to operate in another state, you need to get foreign qualification. The new state will ask you to provide a Certificate of Good Standing from your home state before they approve your registration.

3. Applying for Loans, Credit, or Business Funding

When deciding whether to provide a loan or other corporate financing, lenders, investors, and banks check if your company holds a Certificate of Good Standing to confirm it is legally recognized and financially stable.

4. Renewing Business Licenses or Permits

If you have certain government contracts and professional licenses, or local business permits, you will need to show that your LLC is current with state filings and taxes.

5. Mergers, Acquisitions, or Selling Your Company

In case of a business sale or merger, the purchaser’s counsel will ask for a Certificate of Good Standing to make sure the LLC is valid and there’s no legal issue.

6. Building Business Credibility

When you have a Certificate of Good Standing, it shows your clients, investors, and business partners that you are legally compliant, and operate your business professionally and transparently. This is especially important to trust-based relationships with clients in other countries.

Who Can Request a Certificate of Good Standing?

These individuals are generally permitted to make a request:

• The LLC’s owner or member
• An appointed manager who can represent the LLC
• A designated third party, like a registered agent, accountant, or Bizstartz

Remote operation of LLCs by US entrepreneurs often involves the need for professional help.

At Bizstartz, we manage verifying your compliance, applying for the certificate, and electronically delivering the certificate to you, all without the need for a US address or your physical presence.

Steps to Obtain a Certificate of Good Standing

While different states have a few variations, the steps for obtaining a certificate of good standing are generally the same. Here’s how you can do that:

Step 1: Check Compliance Status

Before you can apply for the certificate, it is vital to determine whether your LLC is eligible to apply for a certificate of good standing. That involves confirming:

• An Annual Report, if your state mandates it, has been filed.
• All taxes and business entity fees have been paid.
• All filed documents have up-to-date Registered Agent details.
• You are free from all administrative actions, penalties, and enforcement actions.

If your LLC has compliance issues, the state will not issue the certificate and you must address those issues first.

Check your compliance status on the Secretary of State’s business search portal, or let Bizstartz do it for you.

Step 2: Go to the Secretary of State’s Website

Business registrations and certificates for your specific state as well as registrations by business type, are managed by the business registrations and certificates managing divisions of the Secretary of State.

For example, you can do the following to find the correct website for your state:

• Delaware: Division of Corporations
• Wyoming: Secretary of State – Business Division
• Florida: Department of State – Division of Corporations (Sunbiz.org)
• Texas: Texas Secretary of State

These sites allow you to search for business records, order documents, and certificates.

Step 3: Look for Your LLC

Type your LLC’s name or entity number in the business search area. Once you’ve located your company listing, you should see an option to “Order Certificate of Good Standing,” “Request Certificate of Existence,” or “Order Status Certificate.”

Before continuing, confirm that the company status displays Active, Good Standing, or Current.

If it displays “Inactive,” “Dissolved,” or “Not in Good Standing,” you must address compliance issues first.

Step 4: Place the Order

After deciding which form of the certificate you need, you can go ahead and place the order. Usually, for this, you need to:

• Decide which certificate you need, the Certificate of Good Standing or Certificate of Status.
• Give the name of your LLC or your filing number.
• Process payment of a small fee (which ranges anywhere between $10 to $50, depending on your state).
• Choose how you’d like to receive your certificate (digitally through your email or through regular mail).

States like Wyoming and Delaware let you download your certificates instantly in PDF format. California and Texas take this time to process your order, which is typically 2-5 business days.

Step 5: Receive the Certificate

After your order has been approved, you will receive a state-sealed CC from your LLC which states:

• Your LLC’s legal name
• Your state entity number
• Date of formation
• A statement which expresses that your LLC is in Good Standing
• A good standing Certificate signed with the Secretary of State’s official seal.

This certificate is the one that satisfies proof of compliance and can be required by many institutions.

How Long Is a Certificate of Good Standing Valid?

A Certificate of Good Standing has no expiration, the only thing is that it reflects the status of your company the moment it was issued.

A certificate is often required to be issued within the last 30 to 90 days.

This is especially true if you are applying for a business bank account or expanding to another state. In this case, it’s best to request a new certificate just prior to submission.

What If Your LLC Is Not in Good Standing?

If your LLC is no longer in good standing, don’t worry, it can be reinstated.

Here are some important issues along with ways to fix and reinstate LLC.

Common Issues:

• Failure to file annual reports
• Non-payment of state filing fees or franchise taxes
• Expired Registered Agent
• Administrative dissolution by the state

How to Fix It:

• File any missing annual reports
• Pay any outstanding fees or penalties
• Update your Registered Agent
• Reinstatement Application if dissolved.

Once LLC compliance is reinstated, apply for the Certificate of Good Standing.

The process can be confusing for non-residents. At Bizstartz, we can complete every step: checking your company records, reinstating your company with the state, and ordering your certificate.

How Bizstartz Can Help You Obtain a Certificate of Good Standing

At Bizstartz, we help international and domestic entrepreneurs integrate and managed their US LLCs, which also includes compliance documentation to complete the business certificate of good standing..

What Our Team Can Do

• Assess the LLC’s compliance status as shown in the state registry.
• File overdue annual reports and reinstate inactive LLCs as necessary.
• Directly request the certificate from the Secretary of State.
• Send you an official digital copy of the certificate you can give to banks and other partners.

You don’t need a U.S. address or presence. We’ll take care of everything online.

Conclusion

In the U.S., a Certificate of Good Standing document is necessary to validate the legality and compliance of your business in all values.

You don’t just gain credibility from a Certificate of Good Standing; you open several important business doors. Some of the doors you open include the ability to open business accounts and even expand internationally.

As long as you remain compliant, your LLC will remain active, preventing penalties, dissolution, and administrative delays.

From startup founders and eCommerce sellers to international entrepreneurs managing their U.S. business from abroad, Bizstartz can streamline the process.

🚀 Obtain Your Certificate of Good Standing from Bizstartz

Let Bizstartz deal with all compliance and paperwork and let you get back to your business where you belong.

✅ We assess your company’s status.
✅ We file any overdue reports.
✅ We request your certificate and send it to you.

📞 Contact Bizstartz.com to get started.

West Virginia is well-known for its Appalachian scenery, but for business people, there is something else, too: How the state assists small businesses is exemplary. It is efficient, cost-effective, and focused on growth.

If you are an American, or if you would like to start doing business in the United States as an international entrepreneur, opening an LLC (Limited Liability Company) in West Virginia is a good idea.

The Bizstartz guide on the formation of an LLC in West Virginia goes in depth on every aspect: Naming your business, filing fees, tax registration, getting your EIN, and all the compliance you will need to continue running your business.

Why Form an LLC in West Virginia

Before we talk about the business formation, it is good to look at all the reasons and advantages you may see if you conduct your business in West Virginia.

1. Setting Up is Cheap and Affordable to Keep Up

In West Virginia, the LLC filing fee is among the lowest in the United States: it costs only $100 to file the Articles of Organization, and the annual report fee is only $25. This is a great help to small business owners, helping them keep monthly costs low and manageable.

2. Strong Liability Protection

When an LLC is formed in West Virginia, personal assets are shielded from business liabilities and lawsuits. Therefore, if legal actions are taken against a business, the founder’s home, automobile, and private accounts wouldn’t be affected. This is a primary reason why most entrepreneurs are drawn to LLCs over sole proprietorships.

3. Flexible Tax Options

By default, LLC’s in West Virginia provide what is called “pass-through taxation” which means the business’s profits go directly to the members and are reported on their individual tax returns. However, depending on the situation, LLC’s can also elect to be taxed as an S-Corporation or C-Corporation with the IRS, which can be a beneficial tax strategy.

4. Supportive for Small Businesses

West Virginia’s Small Business Development Center (SBDC) has ideal policies, as well as, protection business legislations, and streamlined online filing. The SBDC also provides support to entrepreneurs in the form of mentoring, direct funding, and resources.

5. Non-Residents Welcome

Non-U.S. citizens can also establish an LLC in West Virginia. There’s no U.S. citizenship or residency requirement. As long as you have a registered agent in West Virginia, you can be anywhere in the world and operate legally.

Step 1: Choose a Name for Your West Virginia LLC

Choosing a business name isn’t solely a matter of creativity, but a legal and strategic consideration as well. As such, West Virginia has specific naming regulations to follow.

Naming Rules

• Choose any name that includes “Limited Liability Company,” “Limited Company,” “LLC,” “L.L.C.,” “LC,” or “L.C.”
• Your name must be unique and distinguishable.
• You may not use names with restricted wording such as “bank,” “insurance” or “trust” unless you are licensed. Moreover, do not use names that could be misleading or suggest illegal activity.

You can search the West Virginia Business Entity Database to check if the name you want is taken. If you don’t plan to file right away, you can submit a Name Reservation Application to the Secretary of State for a $15 fee to protect the name for 120 days.

Pro Tip:

It is easier to work if your brand and name is the same across platforms. Matching your LLC name with your website and social handles boosts credibility.

Step 2: Appoint a Registered Agent in West Virginia

Every LLC must appoint a registered agent, a person or business entity that receives legal documents, service of process, and compliance notices on behalf of your company.

Requirements for a Registered Agent

Must have a physical street address in West Virginia (no P.O. Boxes). Must be available during normal business hours. You may be registered as an individual or use a registered agent service.

Why it Matters

Having a registered agent helps ensure that you don’t miss critical deadlines or legal notifications. Many business owners, particularly those based outside the U.S., choose a professional registered agent service, such as Bizstartz, for privacy and compliance reasons.

If you relocate your business or switch your registered agent, you need to submit an Agent/Office Change Form with the Secretary of State. This is to ensure that your records stay up to date.

Step 3: File the Articles of Organization

The legal document that formally creates your LLC in West Virginia is the Articles of Organization. You can submit this document online or by mail through the West Virginia One Stop Business Portal.

Information Required

Your Articles must include:

• The LLC’s legal name
• Principal office address and mailing address.
• Registered agent’s name and street address.
• Management structure (member-managed or manager-managed).
• Names and addresses of the members or managers.
• Effective date of formation (immediate or future date up to a max of 90 days).
• Organizer’s name, address and signature.

Filing Fee & Processing

• Fee: $100 (payable to the West Virginia Secretary of State).
• Processing Time: Typically 5-10 business days for regular processing (faster with expedited processing available).

Filing Options:

• You can use the WV One Stop Portal to file online.
• You can also file by mail to the West Virginia Secretary of State Business & Licensing Division.
• You can also drop off the filings in person in Charleston, Clarksburg, and Martinsburg.

After the filings are approved, you will get the Certificate of Formation, which shows that your LLC legally exists.

Step 4 Register with the West Virginia State Tax Department

After you file with the Secretary of State, you must also register with the West Virginia State Tax Department to get your Business Registration Certificate to legally do any business activities.

Key Details

• File the BUS-APP form (Business Registration Application).
• Pay a $30 (non-refundable) fee.
• You must register for the required taxes:
  • Sales and Use Tax (if selling goods).
  • Employer Withholding Tax (if you are hiring employees).
  • Unemployment Insurance (if applicable).

The Business Registration Certificate is your business license for the state, and you must hang it where your business is located.

Step 5 Create an Operating Agreement

An Operating Agreement is not required by law, but it is encouraged to have it for your LLC in West Virginia. This document is for internal use and it outlines the ownership, management, and the way the business will operate.

Reasons You Need One

If you don’t create an operating agreement, your LLC will be governed by default state laws. These laws may not be what you want. A custom operating agreement clarifies potential misunderstandings between members while reinforcing your liability protection.

Elements of an Operating Agreement

• Ownership structure and what each member contributes financially.
• Voting rights and how decisions will be made.
• How profits and losses will be shared.
• Duties and powers of the members and managers.
• How members will be added or removed.
• How the LLC will be dissolved or how members will exit.

Crafting an operating agreement, even as the sole member of the LLC, will show credibility and help legally create your business entity. This entity is crucial for liability protection.

Step 6: Get an EIN

An LLC has to get an EIN to open bank accounts, handle payroll, and pay taxes due to its Federal Tax ID Number.

How to Get One

Go to the IRS’s website.

• Members of the LLC living in the U.S. can apply for an EIN online.
• Non-U.S. residents can apply using Form SS-4 and fax or mail it.

Why You Need an EIN

• To obtain a business account in the U.S.
• To submit your taxes to the IRS.
• To hire staff.
• To create accounts on payment platforms such as Stripe, PayPal, and Shopify.

Obtain an EIN with Bizstartz

Even for international founders without a social security number, Bizstartz can help you obtain an EIN.

Step 7: Open a U.S. Business Bank Account

In order to avoid losing your LLC’s limited liability protection, personal and business finances must be kept separated.

Required Documents

• Approved Articles of Organization
• EIN Confirmation Letter (CP 575) from IRS
• Operating Agreement
• Passport or photo ID (for non-U.S. owners)

If you are outside of the U.S., Bizstartz works with online banks and fintech platforms that enable non-residents to remotely open a U.S. business account.

Step 8: Acquire Licenses and Permits

Depending on what your business does, you will need to get some type of license at the state, county, or local levels.

Here are some examples of what to obtain:

• Your business will need health and food permits if you will be serving food to the public.
• Construction businesses will need contractor licenses.
• Businesses that operate from home need home occupation permits.
• Businesses that have a physical location need zoning and signage permits.

Remember to speak to your local city or county clerk’s office and also the West Virginia Department of Commerce to get the exact permits and licenses for your business type.

Step 9: File Annual Reports

To keep your LLC’s active status, you will also need to file Annual Reports on a yearly basis.

• Deadline: By July 1 each year.
• Fee: $25.
• Method: File online at the Secretary of State’s site.
• Penalty: Your LLC will be administratively dissolved.

To avoid missing any deadlines, Bizstartz suggests setting up reminders. Compliance management tools also work for this.

Step 10: Keep Compliance

To keep your LLC compliant and in good standing, you still need to:

• Pay your state taxes and your annual report dues on time.
• Keep your registered agent info current.
• Keep business permits and licenses current.
• Keep detailed books of account for the business.
• Maintain a clear separation of business and personal finances.

Regular compliance minimizes costly sanctions and preserves the protective liability shield of your business.

What Taxation Looks Like In West Virginia

The West Virginia taxation structure is a bit lenient on LLCs.

• For Single-Member LLCs, taxation is simply a sole proprietorship.
• For Multi-Member LLCs, taxation works as a partnership.
• For Multi-Member LLCs, you can as well opt for S-Corporation or C-Corporation status by filling up IRS Form 2553 or Form 8832.

At a State level, you can as well expect:

• 6% sales and use tax on retail sales.
• And for income tax, you can expect taxes between 2.36% – 5.12%.
• Then for employer taxes, you can expect withholding, unemployment, and workers’ compensation for businesses that have employees.

Starting An Business LLC In West Virginia Without Being A U.S. Resident

International entrepreneurs can also legally form an LLC in West Virginia without visiting the U.S.

Requirements

• By LLC regulations, you must have a registered agent in West Virginia.
• Then provide a U.S. mailing address, which is supplied by Bizstartz.
• Apply for an EIN without an SSN using Form SS-4.
• And you can also open a U.S. business bank account online through partner banks.
• And be sure to comply with all State and Federal tax obligations.

This will allow foreign residents to legally operate a U.S. business and sell on Amazon, Etsy, Shopify, or any other online platform.

West Virginia LLC Formation Cost Overview (2025)

Service	Fee
Name Reservation	$15
Articles of Organization	$100
Business Registration Certificate	$30
Annual Report	$25
Registered Agent (optional service)	$50–$150/year
EIN Application	Free
Operating Agreement	Free (DIY) / $50–$150 (professional)

Timeline to Form an LLC in West Virginia

Step	Estimated Time
Name search and reservation	1–2 days
File Articles of Organization	5–10 business days
Obtain Business Registration Certificate	1–2 days
Apply for EIN	Same day (online)
Open business bank account	1–3 days
File annual report (ongoing)	Yearly by July 1

Most Common Things People Get Wrong

• Not ever mixing up or personal and business or losing track to go add up to which account gives a lot of stress and creates a lot of unnecessary work.
• Missing the annual report deadline means the business is void and being operational without an agreement in place makes it so that you can easily to be sued.
• Ignoring local permits or zoning laws can lead to legal penalties.
• Not properly registering for state taxes can lead to penalties or a business losing its good standing.

Final Thoughts

Forming an LLC in West Virginia is a great option for both U.S.-based and foreign founders. It is low-cost, straightforward, and effective in providing strong liability protection.

In combination with its strong liability protection, low-cost, and straightforward nature, West Virginia is a great state to begin and grow your U.S. business.

Whether you’re a consultant, an eCommerce seller, a freelancer, or a startup founder, the right West Virginia LLC setup will put you on the right path through compliance, effective taxation, and growth.

Ready to Start Your West Virginia LLC?

Bizstartz LLC formation, EIN application, and Registered Agent Service. Bank Account Opening, and BOI filing with bookkeeping makes the entire process easy.

We give you the time and peace of mind to work on your business.

👉 Start your West Virginia LLC with Bizstartz today!

For entrepreneurs who cherish transparency, simplicity, and flexibility, Vermont may be a small, but powerful state. While it is usually admired for its landscapes and eco-friendly way of life, Vermont is also one of the most business-friendly states in the U.S. for small business owners, entrepreneurs, and overseas founders who want to establish a business presence in the U.S.

As an online seller, a consultant, or a technology business owner, forming an LLC in Vermont guarantees that you can operate your business efficiently and gives you legal, business, and structural protection.

For people from other countries, a Vermont LLC is the key to the U.S. market, a business checking account, and working with payment services such as Stripe, PayPal and Amazon, and other global payment processors.

In this comprehensive guide, Bizstartz provides a step-by-step approach to form a US LLC in Vermont, from name selection and document filing to EIN acquisition, compliance, and tax obligations.

Why Establish an LLC in Vermont?

When Compared to LLC friendly states like Delaware or Wyoming, Vermont is seen by many as an underrated state to do business in. However, Vermont is becoming an increasingly great option for both domestic and overseas business owners.

✅ Low Cost to Start and Maintain Business

Vermont is one of the most affordable states to start up and maintain a business. Other states have a much higher initial formation fee and Vermont’s annual reporting is painless and inexpensive as well. Low formation and annual fees offer new business owners and the self employed the opportunity to allocate most of their funds to growing their business instead of high recurring fees.

✅ Strong Legal Protection, No Liability

The first and most important reason to form an LLC is to assign the responsibility of business debts to the LLC and protect the members’ personal assets. Vermont’s LLC statutes make it perfectly clear that business owners do not owe personal liability for the debts of the LLC. This means your personal assets, savings, and property will not be affected by any weighty legal issues that flow through your business.

✅ Flexibility for Non-US Residents

Vermont allows you to form an LLC even if you are not a U.S. citizen or resident. This makes it an ideal state for non resident entrepreneurs wishing to enter the U.S. market, open a U.S. bank account, and perform global business operations with a legit U.S. entity.

✅ Strong Privacy and Transparency Standards

Vermont appreciates privacy while allowing a transparent business atmosphere. It does not require the public to disclose all the members and managers, and this degree of confidentiality is attractive to foreign founders.

✅ Tax Advantages

Vermont LLCs have pass-through taxation. That is, the LLC does not pay federal income tax. Instead, profits and losses are given to the LLC members, who report them on their personal tax return. This removes the issue of “double taxation” that corporations complain about.

Step 1 Vermont LLC

The first step is to choose a name that fits your brand, while also meeting the state of Vermonts naming requirements. This is to ensure the name is unique, and distinguishable from other businesses registered within the state.

LLC Name Guidelines

• Your business name must contain “Limited Liability Company”, “LLC“, or “L.L.C.”
• Your business name can’t contain words that would fool clients such as “bank” or “insurance” unless you have permission.
• Your business name can’t violate trademarks or be an exact duplicate of an already registered name.

To check to see if your name has been registered, visit Vermont Business Name Search. If your name is available and you are ready to file your LLC, you can reserve the name for 120 days by submitting a Name Reservation Application and a $20 fee if you are not ready to file your LLC.

Tip: Choose a name that suits your business. “GreenMountainTech LLC” would fit Vermont’s character while conveying professionalism if you are an IT consultant.

Step 2: Designate an Agent for Service of Process

Every LLC in Vermont must designate a registered agent, who will accept legal papers, tax documents, and official communications for your LLC.

Your registered agent must:

• have a physical street address in Vermont (no P.O. Boxes)
• be available during business hours
• agree to be your registered agent.

You can choose a person or use a registered agent professional service.

For Non-U.S. Residents:

If you live outside the United States, you are required to have a Registered Agent in Vermont to receive state correspondence. Even abroad, you can have Bizstartz provide a Registered Agent service for your Vermont LLC, and you will still stay legally compliant.

Step 3: File the Articles of Organization.

This is the first official step to legally constituting your LLC in Vermont. The Articles of Organization must be submitted to the Vermont Secretary of State. You can submit the forms online or send them through the mail.

This will require:

• The LLC’s name and the principal office’s address.
• The name and address of the Registered Agent.
• The business purpose.
• The business management structure: member-managed or manager-managed.
• The organizer’s details.

The Filing Fee is $125, with a Processing Time of 1-2 business days if filed online.

You’ll gain a Certificate of Organization once the state approves your submission. This is your official proof that your LLC is legally in existence.

Pro Tip from Bizstartz: We do the entire service for you to prevent unnecessary filing feasible issues and delays.

Step 4: Create an Operating Agreement.

You still want to have an Operating Agreement even if Vermont law does not require it. This is even more important for multi-member LLCs.

This internal agreement outlines how your company runs, how decisions are made, how profits are shared, and how disputes are settled. It serves as a handbook, providing a framework for efficient functioning of your business and safeguarding the LLC’s limited liability.

Your Operating Agreement should include:

• Ownership percentages and capital contributions
• Rights and responsibilities of each member
• Voting and decision-making procedures
• Distribution of profits and losses
• Process for adding or removing members
• Dissolution and exit terms

Operating Agreements are an essential component for maintaining the legal liability protection of an entity, even for single-member LLCs.

For single-member and multi-member Vermont LLCs, Bizstartz has customized Operating Agreement templates.

Step 5: Apply for an Employer Identification Number (EIN)

An Employer Identification Number (EIN) is your business’s Social Security Number. It is issued by the Internal Revenue Service (IRS) and it needed for:

• Opening a U.S. bank account
• Hiring employees
• Filing federal taxes
• Applying for payment processors such as PayPal, Stripe, and Amazon

EINs can be obtained for free through the IRS website as long as you have a U.S. Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN).

If you’re a non-U.S. resident without an SSN or ITIN, Bizstartz can help you get your EIN by manually filing (Form SS-4) with the IRS. We manage this entire process so that you can concentrate on your business.

Processing Time: 1-2 Weeks (for non-US founders)

Step 6: Opening a U.S. Business Bank Account

You need a business U.S. bank account to carry out your business, get paid, and build trust financially. It is also helpful in segregating personal and business dealings, which is necessary for accurate bookkeeping and protection against liabilities.

Generally, to open a business bank account in the U.S., you need:

• Your LLC’s Articles of Organization
• EIN confirmation letter from the IRS
• Operating Agreement
• Identification Passport
• Proof of Address

There is no need to change your plans if you are a non-U.S. founder: Bizstartz cooperates with multiple U.S. banks and fintech companies that permit non-residents to open accounts remotely. You don’t need to come to the U.S. We will take care of everything for you.

Step 7: Keep Complying

Creating your LLC is only the first step. To keep your Vermont LLC active and properly registered, you’ll need to keep up with ongoing compliance.

1. Fill Out the Vermont Annual Report

Every Vermont LLC needs to submit an annual report to the Secretary of State.

• Cost: $35
• Deadline: Within 3 months of the end of your LLC’s fiscal year
• Where to Submit: Vermont Annual Report Portal

This report serves as an update on key business details like your address, Registered Agent, and members. Not submitting this report on time could lead to fines, and if it’s really overdue, the state can dissolve your LLC.

2. Keep Bookkeeping Accurate and Tax Records

Even with pass-through taxation, you won’t get a tax holiday, so keep your Vermont LLC business and tax records up to date. Depending on your business, you may need to file:

• Federal Income Tax with the IRS
• Vermont State Income Tax
• Sales Tax (if you’re selling goods/services in Vermont)
• Employer Taxes (if you have employees)

Bizstartz offers bookkeeping and tax filing services for U.S. LLCs to international founders.

3. Refresh/Replace Your Business Licenses

Some sectors, such as retail, food, and consulting, need business licenses for operation. Make sure to refresh and replace your licenses as required to prevent issues.

Vermont LLC Formation and Maintenance Costs

Service	Estimated Fee
Name Reservation (optional)	$20
Articles of Organization	$125
Annual Report Filing	$35
Registered Agent Service	$100–$150/year
EIN Application (via Bizstartz)	$95
Operating Agreement (optional)	$50–$100

Bizstartz offers all-in-one LLC formation packages that include formation, Registered Agent, EIN, BOI filing, and more — ideal for international entrepreneurs.

Taxes for Vermont LLCs

Defaults for Vermont LLCs are pass-through entities which means profits and losses are passed on to the members and are reported on their individual returns.

However, you may choose for the LLC to be taxed as an S or C Corporation if it aligns better with your business model.

Vermont LLC Taxes:

• State Income: Taxed on members who earn income in Vermont.
• Sales and Use: 6% Vermont sales and use tax on the retail sale of tangible personal property and certain services.
• Employer Taxes: If you hire employees you will need to obtain employer licenses, and withhold and pay unemployment taxes.

Bizstartz is responsible for US tax compliance for international entrepreneurs which allows your LLC to optimize taxes while ensuring it remains active.

Why select Bizstartz for your Vermont LLC

Non-US entrepreneurs forming a US LLC is complicated with all the tax, banking, and compliance obligations. Bizstartz takes the challenge away.

With Bizstartz, you get:

✅ LLC Formation in all 50 U.S. states

✅ EIN and ITIN Application Support

✅ Registered Agent Services

✅ U.S. Business Bank Account Opening

✅ Bookkeeping, Tax Filing & Compliance

✅ BOI (Beneficial Ownership Information) Filing

✅ Trademark Registration & Brand Protection

We take care of everything so you can focus on expanding your business worldwide.

Conclusion

For those interested in Vermont LLC, It is one of the best decisions for entrepreneurs because of the ease, flexibility, and low cost. Vermont has all the business resources in the world for people from other countries so long as you want to start, expand, or safeguard your business.

By choosing Bizstartz, your Vermont LLC will be formed in a seamless, secure, and completely online manner. We will register your business, assist you in getting your EIN, comply, open your U.S. business bank account, and avoid you having to be present in the U.S.

🌐 Begin your Vermont LLC with Bizstartz

This is the move to global business success.

💼 Visit Bizstartz.com to form your U.S. company today.

South Dakota is one of the best states in the US to start a business. No state income tax, low annual fees, strong privacy protections, and a business-friendly environment for both US residents and international entrepreneurs who wish to establish a legal business in the US makes South Dakota a no-brainer.

In this Bizstartz guide, we cover all the steps for forming a Limited Liability Company (LLC) in South Dakota, including choosing a business name, filling out formation documents, applying for an EIN, opening a US bank account, and business compliance.

This is a step-by-step guide for South Dakota LLC formation designed to allow US citizens starting their first business and non US residents who are venturing out for global business expansion.

Why South Dakota for your LLC?

South Dakota is highly recognized for being dependable and one of the most business-friendly states in America. This is largely due to the state’s fellowship tax structure, uncomplicated regulations, and a strong privacy emphasis.

Let’s look at the advantages of choosing South Dakota as your LLC home:

1. No State Income Tax

No South Dakota business or personal income tax means business owners of any residency take home higher profits. This attracts online business owners, eCommerce store owners, consultants, and other digital service providers because no income tax means even more profits from sales out of the state.

2. Inexpensive Filing and Maintenance Fees

When it comes to LLC South Dakota is also budget friendly. Business owners pay $150 filing fees and $50 for annual reports meaning filing reports and maintaining your LLC is inexpensive.

3. Strong Privacy Protection

South Dakota is more protective of your confidentiality as business owners. South Dakota does not require listing owners or management in their online database. This can be beneficial to business owners needing privacy for their enterprises.

4. Less Complicated Compliance

South Dakota has a focus on entrepreneurship and being business friendly. They have no franchise tax on your business, and annual reports and filings have less to no complex requirements.

5. 100% Foreign Ownership Allowed

South Dakota LLCs can be 100% owned by foreign nationals. South Dakota makes it easy for international owners to incorporate because there are no residency or citizenship considerations.

With that in mind, South Dakota is tax efficient, private, and simple which is why it is favored by international and U.S. business owners.

Step 1: Choose a Name for Your South Dakota LLC

The name of your LLC is your business identity. Selecting a name that fulfills South Dakota’s LLC naming requirements will aid in defining your professional brand.

South Dakota LLC Naming Guidelines:

• Your name must have “Limited Liability Company,” “LLC,” or “L.L.C.”
• Your name must be original and distinguishable from other LLCs in South Dakota.
• Your name cannot include the words “Bank,” “Insurance,” or “University” without special permission.
• Your name cannot mislead the public as to the nature of the business and must not suggest a government affiliation.

You can find out if your proposed name is available by using the South Dakota Secretary of State Business Name Search.

If you see that your desired name is available, but you are not ready to file, you may file for a Name Reservation Application and hold your name for 120 days for a small fee.

Pro tip: Create a name that is easy to say and remember. Think about the audience you are trying to reach. If you are planning to have a business website, check that your preferred domain name is available too.

Step 2: Choose a Registered Agent

Every LLC in South Dakota has to have a Registered Agent, which is just a person or business who is assigned to receive legal and official correspondence on behalf of your LLC.

Your Registered Agent must:

• Have a physical South Dakota street address (no P.O. Boxes)
• Be present to receive documents during business hours
• Be authorized to do business in the state.

If you are not a U.S. resident, choosing a Registered Agent service is a must, since you most likely don’t have local business presence.

Bizstartz has Registered Agent services in every state in the U.S., including South Dakota, and keeps your LLC under state compliance.

Step 3: Submit the Articles of Organization

The Articles of Organization is the official name giving document to form your South Dakota LLC. You can complete this task online through the Secretary of State’s portal or by sending it through the mail.

Filing Fees:

• Online: $150
• Paper Filing: $165

The Articles of Organization typically include:

• LLC name
• Your Principal business address
• Registered Agent’s name and address
• Management structure (member-managed or manager-managed)
• Duration of your LLC (perpetual or limited)

Once this is approved, the State Secretary will issue a Certificate of Organization. This document will confirm the legal existence of your LLC.

Bizstartz Tip: When you form your LLC through Bizstartz, we manage all the filing for you and guarantee your documents will be complete, correct, and filed promptly.

Step 4: Write an Operating Agreement

Even if South Dakota law does not require it, the Operating Agreement is a necessary document to the LLC. This document includes the internal structure and defines how your LLC will operate.

The items above allow your LLC to clearly define and manage:

• Each member’s ownership percentage
• The roles and responsibilities of the members and managers
• The distribution of profits and losses
• Management and ownership additions or removals
• The procedures for dissolving the entity

For your multi-member LLC, this document will be vital to avoiding unnecessary disputes.

For single-member LLCs, additional legal protection is achieved by proving the separation between personal and business activities.

Bizstartz offers custom Operating Agreement templates for both single and multi-member LLCs. This ensures that your company is legally sound from day one.

Step 5. Get an EIN

An EIN (Employer Identification Number) is your business’s Social Security Number. The IRS issues one for tax and banking purposes.

You need an EIN when you:

• Open a U.S. business bank account
• File federal and state taxes
• Heed employees
• Applay for payment processors like Stripe and PayPal

You can apply for an EIN online at the IRS website if you have a Social Security Number (SSN) or ITIN.

Bizstartz can obtain your EIN by filing Form SS-4 on your behalf if you are a non-U.S. resident without an SSN or ITIN.

This step is important because most banks and payment gateways will not approve your business account without an EIN.

Step 6. Open a U.S. Business Bank Account.

This is critical for maintaining liability protection. It allows your LLC to gain more legitimacy and helps you separation personal and business finances.

To open a business bank account in the U.S., you need the following:

• Certificate of Organization (LLC approval document)
• EIN Confirmation Letter
• LLC Operating Agreement
• Passport/Government ID
• Proof of Business Address

Some banks will require you to be in the U.S., but some U.S.-based banks and fintech partners to Bizstartz allow you to open a business bank account remotely.

Having a U.S. business bank account allows you to:

• Receive international payments.
• Build business credit.
• Accept card payments through Stripe or PayPal.
• Look professional and trustworthy to U.S. clients.

Step 7: Register for State Taxes

Although South Dakota doesn’t charge state income tax, your LLC might still need to register for other state taxes, depending on what your business does.

For example, register for:

• Sales and Use Tax: Needed if you sell taxable goods or services in South Dakota.
• Employer Taxes: Required if you have employees; you need to register with the South Dakota Department of Labor and Regulation.

You can register these taxes on the South Dakota Department of Revenue online services.

Note: If your LLC does business only online and has no physical presence or sales in South Dakota, you might not need to register for state taxes. Bizstartz can assess your business activity for compliance.

Step 8: Maintain Ongoing Compliance

To keep your LLC in South Dakota good standing, you need to follow the state annual compliance procedures.

Annual Report

Every LLC in South Dakota must file an Annual Report.

• Filing Fee: $50 when filing online and $65 for paper filing.
• Due Date: The first of the month that is the anniversary of when your LLC was formed.

The Annual Report confirms that your LLC’s contact and ownership details are correct. Late filing will incur late fees and penalties and could result in the dissolution of your company.

To keep your company active and compliant, you can use the Annual Compliance Service offered by Bizstartz. We keep track of your deadlines and file your reports on your behalf.

Benefits of Forming a South Dakota LLC for Non-U.S. Residents

If you are outside the United States, a South Dakota LLC allows you to reach the U.S. market with no complications from anywhere in the world.

Benefits for International Founders:

• no U.S. partner is necessary
• no need to be in the U.S. in person
• no state income or corporate taxes
• no personal U.S. business bank account restrictions
• access to U.S. payment processors like Stripe, PayPal, and Amazon
• beneficial ownership
• legal compliance is easy

Because of these advantages, South Dakota is one of the best U.S. states for eCommerce store, SaaS company, agency, and digital consultancy entrepreneurs.

Bizstartz has helped hundreds of South Asian, European, African and Middle Eastern founders seamlessly launch U.S. LLCs, obtain EINs, open bank accounts and set up payment processors.

How Bizstartz Can Help You Form a South Dakota LLC

At Bizstartz, we understand how easy and fast business formation can be in the states, especially for the non-U.S. residents, as well as how much worry comes along with it, and we aim to alleviate that.

Our South Dakota LLC package is all-inclusive and comes with a lot. For example, we do the following for you:

✅ LLC formation filing with the Secretary of State

✅ Registered Agent service in South Dakota

✅ EIN (Tax ID) application

✅ Operating Agreement preparation

✅ BOI (Beneficial Ownership Information) filing

✅ U.S. business bank account opening support

✅ Bookkeeping and tax compliance assistance

We aim to provide complete peace of mind by managing the process to guarantee that your South Dakota LLC business can legally operate without fear of compliance and structuring issues.

Final Thoughts

For an entrepreneur that values tax savings, simplicity, and privacy, opening an LLC in South Dakota is one of the best business decisions they can make. The state is perfect for digital entrepreneurs, startups, and foreign business owners that want to penetrate the U.S. market, as it offers a zero income tax, business-friendly climate, and low fees.

Therefore, you can complete your South Dakota LLC formation remotely, as well as having all the confusing and complex documentation to us to navigate. If you need further assistance, our team at Bizstartz is always happy to help.

🚀 Getting Started with Your South Dakota LLC

Starting your company in the US is quick and easy with Bizstartz.

At Bizstartz, we help entrepreneurs from all over the globe set up their businesses in the US in a quick, legal, and professional manner.

👉 Go to Bizstartz.com to start the process today, or schedule a consultation with our professionals free of charge.

Oregon remains one of the best states to do business in the U.S. as it has great small business owner legal protections, easy regulations, and no state sales tax.

Oregon is a great state to form a Limited Liability Company (LLC) whether you are a foreign business owner penetrating the U.S. market, or a U.S. citizen starting your first business.

Every step from name selection, document submission, and acquisition of your EIN to compliance maintenance is included in this all-inclusive guide to forming your LLC in Oregon. Keep reading to see how to form an LLC in Oregon.

Why Choose Oregon for Your LLC?

Business owners who are starting new businesses have flocked to Oregon and it is important to understand why. While many business owners wish to incorporate in Wyoming or Delaware, Oregon has plenty of benefits with LLC formation to qualify as a best kept secret.

1. State Sales Tax

Oregon has no sales tax. Customers won’t have to pay sales tax on purchases. This gives products and services no sales tax. This makes products and services more competitive. E-commerce businesses could have higher profit margins with greater pricing flexibility.

2. Cost to Form and Maintain an LLC

Oregon has one of the more reasonable prices to form and maintain an LLC. The filing fee is $100 and the annual renewal fee is $100 with no hidden charges. Oregon is a practical choice for small businesses and solo entrepreneurs to operate efficiently with minimal administrative overhead.

3. Legal and Business Environment

Oregon has a modern and simplified legal environment that is supportive of entrepreneurs. Members of an LLC in Oregon have strong liability shields. This means the personal assets of the members are separate and protected from the business and its debts.

4. Privacy and Flexibility

According to public records, Oregon LLC member details are not needed. All that is needed is to list the name and address of your registered agent. This is great for entrepreneurs who are private and wish to keep their LLC to themselves.

5. Ideal for Both U.S. and Foreign Founders

Oregon is an excellent choice for founders, whether they are US citizens or not. Given that there are no citizenship or residency requirements, for international founders it is a great option to set up a legal US entity to obtain a US bank account and payment processors.

Step 1: Choose a Name for Your Oregon LLC

The first and most imaginative step for your Oregon LLC is having your business name chosen. Your business name is the first info your potential clients/customers will come across, so it should leave a lasting impression – it has to be professional and comply with Oregon state guidelines.

Oregon LLC Naming Rules:

• State guidelines mandate that “Limited Liability Company” or the abbreviation “LLC” or “L.L.C.” be included or attached to the name.
• The name must be original and distinguishable: no name may be registered in Oregon.
• Names may not contain certain “restricted” words such as “bank”, “insurance” or “corporation” without the required documents.
• Don’t use names that might make people think your business is a government agency. Stay away from words like “FBI,” “Treasury,” or “State Department.”

You can find out if a business name is available by using the Oregon Secretary of State’s Business Name Search feature.

If you’re not quite ready to form your LLC instantly, Oregon enables you to reserve your LLC name for 120 days by submitting a Name Reservation request. This service is available for a fee of $100.

Pro tip:

Before you finalize the name for your LLC, be sure to check if the corresponding domain name (.com) and social media handles are available. This makes it easier to market your LLC online.

Step 2: Choose a Registered Agent

Each LLC in Oregon is needed to appoint a Registered Agent. This individual or business acts as your official link to the state; they receive legal and official documents, as well as service of process, on your behalf.

You can also take on the role of Registered Agent, as long as you meet these requirements:

• There must be a real, physical location in Oregon; not a P.O. Box.
• The Registered Agent can be a business entity or a single individual that resides in Oregon.
• They must be reachable during standard business hours to receive documents.

Bizstartz can also assist entrepreneurs that are outside of Oregon or that are globally based. We make sure that your business continues being compliant and that your legal notices are received and forwarded appropriately and timely.

Step 3: File your Articles of Organization

These Articles of Organization are essential to registering your LLC with the Oregon Secretary of State. This registration step permits the business to be recognized legally in the state.

How to File

You can file Articles of Organization in the following ways:

• Online: Through the Oregon Business Registry (recommended as you can get faster approval).
• By Mail: You can download the form below, fill the form, and send it to the Secretary of State’s office.

Filing Fee

• The filing fee is $100 (one-time).

The following information will be needed:

• The LLC name and principal address
• The registered agent’s name and the address (physical)
• The duration of the LLC
• The management structure
• The Organizer’s name and signature

The state will then issue you a Certificate of Formation confirming that your LLC legally exists. This is the approval you will be looking for.

Step 4: Create an Operating Agreement

Although an Operating Agreement is an internal document outlining how your LLC will run, in Oregon, it is not mandatory, but it’s highly suggested, especially for multi-member LLCs or if you want to avoid issues later on regarding clearly defined operations.

Why This is Important

Without an Operating Agreement, your LLCs lacks governance control and will be run under Oregon state default laws, which may not perfectly fit your business model. You can write it in a way to make your own governance rules on your LLC to control your state laws wrt: decision making, ownership, or profit and loss distribution.

Elements To Consider:

• Ownership percentages and member roles
• Capital contributions
• Voting rights and major decision making process
• Distribution of profits and losses
• How to add and remove members
• Dissolution process

An Operating Agreement protects your business as a single-member LLC by strengthening your liability defense because it shows a pronounced separation and outlines the distinct business entity.

Bizstartz can help you draft a customized Operating Agreement tailored specifically to your business structure and goals.

Step 5: Obtain an EIN (Employer Identification Number)

An EIN is an Employers Identification Number. It is your business social security number issued by the IRS for tax purposes, banking purposes, or hiring employees.

Reasons You Need an EIN:

• Opening a business bank account in the U.S.
• Filing federal and state taxes.
• Getting payment gateways like Stripe, PayPal, and Amazon.
• Legally employing people.

How to Apply

The easiest and fastest way is to apply directly through the IRS EIN application page.

If you are a non-U.S. resident and do not have a Social Security Number (SSN), you can request an EIN through a paper application or Bizstartz EIN filing service. Our specialists will efficiently and accurately complete the application, allowing you to concentrate on setting up your business.

Step 6: File Your Oregon Annual Report

To maintain your LLC’s active status and good standing, every year you will have to file an Annual Report to the Oregon Secretary of State.

Details:

• Due Date: The anniversary date of your LLC’s formation.
• Filing Fee: $100 each year.
• Where to File: Oregon Secretary of State’s website (online).

Your Annual Report will include reconfirming or updating the addresses, registered agents, members, and any other info pertinent to your business. If you don’t file an Annual Report, you will incur a late fee and could have your business administratively dissolved, so don’t miss your deadline.

As a registered agent, Bizstartz will streamline your compliance annual monitoring to make sure you have no interruptions of your services.

Step 7: Open a U.S. Business Bank Account

Once your LLC is formed and you’ve received your EIN (Employer Identification Number), you will need to open a U.S. business bank account. This is a crucial step to keep your personal and business accounts separate, which is necessary for personal liability protection and for building business credit.

Required Documents:

• Articles of Organization
• EIN confirmation letter
• Operating Agreement
• Passport (for non-U.S. residents)
• Proof of address (in some cases)

Bizstartz helps international clients open U.S. bank accounts remotely, no need to visit the U.S. in person. We also help set up payment processors like Stripe, Wise, and Payoneer to help you receive payments anywhere in the world.

Step 8. Stay Compliant with Oregon Laws

Setting up an LLC is just the first step. To keep your business up and running, you should continue to comply with law requirements at the State and Federal levels.

Ongoing Compliance Checklist:

• File Annual Reports
• Keep accurate and complete records
• File your taxes every year with the State and Federal Government
• Renew your business licenses and permits
• Keep a Registered Agent at an Oregon address.

Remaining compliant will keep your LLC legally active and help you build goodwill with customers, investors, and banks.

How Bizstartz Helps You Form and Manage Your Oregon LLC

Bizstartz helps you LLC in any U.S. state. We help you seamlessly navigate all the requirements no matter if you are a U.S. resident or international.

You won’t have to worry about compliance and cumbersome paperwork because our entire formation packages take care of every detail.

Every Oregon LLC Package Comes With:

✅ Formation of LLC (Articles of Organization)

✅ Application for an EIN (Federal Tax ID Number)

✅ Registered Agent Service

✅ Drafting Operating Agreements

✅ Setting Up a U.S. Business Bank Account

✅ ITIN Application (if needed)

✅ Filing of BOI (Beneficial Ownership Information)

✅ Continued Compliance Help

No matter if it’s an e-commerce enterprise, consulting agency, SaaS tech company, or a digital service, Bizstartz will ensure you establish and run your Oregon LLC in a legal and seamless manner.

Conclusion

For small business owners, Oregon provides an unrivaled combination of affordability, privacy, and simplicity. With strong legal protection, and no sales tax, and low filing fees, it’s a wise choice to establish an LLC in Oregon if you want to maintain a viable and legitimate business in the U.S.

Let Bizstartz take care of every paperwork, compliance, and even the setup of your business and a U.S. bank account, so you can fully focus on expanding your Oregon LLC and business into the global market.

Ready to Form Your Oregon LLC

👉 Start Now with Bizstartz

Fast and reliable. Professional and trusted by business owners all over the world.

When considering new locations for business formation, Maine probably isn’t top of mind. However, that’s because it’s a best kept secret for those who appreciate simplicity, affordability, and strong legal protections for their business.

Regardless if you are a U.S. resident starting your first business, or a foreign business owner wanting to set up a legal business in the U.S. Maine LLCs are a great option. They provide great LLC formation options that are flexible, and protective and enhance your business’s credibility.

In this guide, we will explain the process of forming an LLC in Maine, and break down the requirements, costs, obligations, and steps that will ensure compliance and keep your business moving.

Why Form an LLC in Maine?

Maine has a great advantage for small and mid-sized businesses and it is their low cost of doing business combined with Maine’s strong liability protections and low friction state filing system.

Maine LLC formation is a great step for businesses looking for:

Affordable Formation Costs

While Maine charges $175 for filing in comparison to California and Massachusetts whose filing fees are $500+, this is very cheap from the perspective of new business owners and start ups.

Limited Liability Protection

With an LLC, your personal assets will not be affected by your Maine LLC. If your business is faced with lawsuits or debt, your possessions will not be targeted.

Simplified Compliance

Maine LLCs have minimal ongoing requirements. Most importantly, an LLC has to file an Annual Report to remain in good standing status.

Flexibility for Non-U.S. Owners

Maine LLCs do not have citizenship requirements. Therefore, foreign business owners can register, as well as manage, a Maine LLC regardless of their residency status in the United States.

Business-Friendly Environment

Maine has modern business laws that are welcoming to remote businesses, eCommerce businesses, and consultants that cater to U.S. consumers, no matter their location.

If you are planning on using eCommerce tools like Amazon, Shopify, Stripe, or Upwork, having a Maine LLC will enhance the business’s professionalism.

Step 1: Select a Name for Your Maine LLC

Picking a name is the first step as it is the first part of the identity of your Maine LLC. All business LLC name in Maine must follow the following standards:

Naming Rules:

• Contains the words “Limited Liability Company,” “LLC,” or “L.L.C.”
• Does not contain the words “bank,” “insurance,” or “corporation” unless licensed.
• Differs from all Maine business name registries.
• Does not describe illegal activity or suggest a government affiliation.

You can find registered business names using the Maine Secretary of State Business Entity Database.

If you will not immediately file your LLC, you can reserve your name for 120 days by filing an Application for Reservation of Name and paying a $20 fee.

💡 Strategy: Use names in line with your business model and brand. For Maine based or remote service businesses LLC names work well are “Pinewave Consulting LLC” or “Atlantic Digital LLC.”

Step 2: Choose a Registered Agent in Maine

A Registered Agent is a person or corporation which receives official correspondence from the government, legal documents, and other compliance papers in the name of your LLC.

To qualify, the Registered Agent must:

• Have a physical street address in Maine (no P.O. boxes).
• Be available to receive legal papers during business hours.
• A Registered Agent can also be a business or member of your LLC, or a Maine friend.

If you own a business in another country and don’t have an address in the U.S., you must have a local Registered Agent. For Maine, you can use Bizstartz. They will help your LLC remain compliant and help you receive legal documents.

💡 Why it matters: If your Registered Agent doesn’t receive important documents (like a lawsuit or government notice), your LLC could lose good standing or face other penalties.

Step 3: File the Maine Certificate of Formation

The Certificate of Formation is the official document which legally creates your LLC with the Maine Secretary of State.

Things You Need To Include:

• LLC Name
• Registered Agent Name and Address
• Principal Business Address
• Type of Management: Member-managed (owners run the company) or manager-managed (you hire a manager)
• Duration of the LLC: Most choose “perpetual,” meaning it doesn’t automatically dissolve.

Filing Options:

• Online filing: Fast and convenient through the Maine Secretary of State portal

By mail:

Department of the Secretary of State
Division of Corporations, UCC, and Commissions
101 State House Station, Augusta, ME 04333-0101

Fee:

• $175 (payable to “Secretary of State”)

Once your filing is approved, you’ll receive a Certificate of Formation confirmation, your LLC is now legally registered in Maine!

Tip: Bizstartz can handle this entire step for you, ensuring your forms are correctly completed and approved faster.

Step 4: Create an Operating Agreement

While Maine does not require an LLC to have an Operating Agreement, it’s one of the most important internal documents for your company.

What Is An Operating Agreement?

This is a formal document which describes how your LLC will function. It will describe:

• The holdings of each owner (who owns what percentage)
• The duties of each member, their rights, and the responsibilities of each member
• The distribution of profits and the responsibility for losses
• The provisions for voting on the allocation of profits, and the responsibility for losses
• The addition and removal of members (and how they can be added)
• The closure of the LLC and the provisions for dissolving the LLC

An Operating Agreement will help avoid conflicts between members, and provide proof that your LLC is legally recognized as a separate entity. This increases your liability protection.

💡 Single-member LLCs: Even when you are the lone owner, an Operating Agreement will be advantageous when establishing a U.S. bank account, or in other dealings with banking institutions.

As part of our LLC packages, Bizstartz provides professionally drafted Operating Agreements tailored to your ownership structure.

Step 5 Obtain An EIN (Employer Identification Number)

An EIN (employer Identification Number) is an identifier that the IRS issues to your business and is also a tax ID. It is used when:

• Filing U.S. taxes
• Opening a U.S. business bank account
• Hiring employees
• Registering for payment processors (ex. Stripe, PayPal, and Shopify Payments)

How to Get an EIN

You can apply for an EIN through the IRS website, if you are a U.S. citizen.

But if you’re a foreign national and you don’t have a Social Security Number (SSN), it’s a different story for you. You’re going to have to manually send Form SS-4 by fax or mail. This could take weeks!

This is where Bizstartz comes in. We take care of the entire EIN process for foreign-owned LLCs to guarantee your EIN is issued properly even if you don’t have an SSN.

Step 6: Submit the Annual Report to the State of Maine.

To keep your LLC in good standing with the state of Maine, you must submit an Annual Report.

Important information to note:

• Due Date: June 1 every year
• Cost: $85
• Method of Submission: Online or by mail

The report includes changes to your company’s information, including your address and information of your Registered Agent.

Failure to submit your report on time can result in a late fee or even have your company dissolved by the state.

Bizstartz has compliance reminders and filing services to keep your Maine LLC in good standing and avoid penalties.

Step 7: Open a U.S. Business Bank Account

After you’ve received your LLC and EIN, your next step is to get a U.S. business bank account. This is necessary to keep your business and personal finances separate.

Required Documents:

• Certificate of Formation
• EIN Confirmation Letter
• Operating Agreement
• LLC Member Passport or ID
• Business address and Registered Agent details

Many U.S. Banks offer remote account opening to non residents through partners like Mercury, Relay, and Wise.

Bizstartz helps you with U.S. Bank account opening, even if you don’t live in the U.S. This includes account, verification and documentation submission.

Step 8: Register for Taxes and Business Licenses

You might also need to register for state and federal taxes or business licenses based on your business activity. LLCs in Maine, for example, need to take these actions:

• Register for federal taxes with the IRS and your EIN.
• Register for Maine income tax and/or sales tax if you need to collect Maine state taxes.
• Get a sales tax permit if you sell goods in Maine or to Maine customers.
• You can register for these on the Maine Revenue Services (MRS) website.

Also, consider local permitting and licensing requirements which may apply to industries like construction, retail, or consulting.

💡 Tip: Before launching any business, it’s wise to identify all state and federal tax obligations and obtain the necessary permits, as Bizstartz does for its clients.

Step 9: Apply for an ITIN (For Non-U.S. Owners)

As a foreign entrepreneur without a Social Security Number, you will most likely need an ITIN (Individual Taxpayer Identification Number).

An ITIN allows you to:

• File federal tax returns
• Report income earned through an LLC in the United States
• Open bank accounts and receive payments from American payment processors

To apply for an ITIN, you need to fill out Form W-7 for the IRS and submit it with documents for identity verification. Even if you are abroad, Bizstartz assists clients internationally with all steps in the ITIN application in a timely and correct manner.

Step 10: Maintain Ongoing LLC Compliance

Developing your LLC in Maine does not exempt you from additional future responsibilities as your business develops. You are still required to fulfill federal and state obligations every year to maintain good standing.

You must do the following:

• File your Annual Report
• Keep your Registered Agent active
• Keep a business bank account separate from your personal account
• File taxes on a federal and state level
• Maintain business records and minutes of meetings

If you do not obey, you will incur penalties, lose liability protection, or face administrative dissolution.

Bizstartz provides ongoing compliance management, so you can grow your business while we handle the paperwork.

Cost Summary: Maine LLC Formation Overview

Step	Description	Cost
Name Reservation (optional)	120-day reservation	$20
Certificate of Formation	State filing fee	$175
Registered Agent Service	Annual	$50–$150
Annual Report	Yearly filing	$85
EIN Application (via Bizstartz)	For non-U.S. founders	Included in package
ITIN Application (if needed)	Optional	Additional service

Why Choose Bizstartz to Form Your Maine LLC?

Unlike most LLC management companies, Bizstartz does not limit its clientele to U.S. residents. We help global entrepreneurs to set up and manage LLCs anywhere in the U.S., including Maine.

We offer,

• LLC Formation and State Filing
• Registered Agent Service
• EIN Application (without SSN)
• Operating Agreement Preparation
• Beneficial Ownership Information (BOI) Filing
• Individual Taxpayer Identification Number (ITIN)
• U.S. Bank Account Setup
• Bookkeeping and Tax Filing Support

We offer 100% remote, transparent, and stress-free service, so you can focus on growing your business.

Final Thoughts

Establishing an LLC in Maine is one of the most efficient and effective ways to create a legitimate business presence in the U.S. Maine is incredibly business-friendly. Entrepreneurs can benefit from low compliance requirements, strong asset protection, and low fees.

If you are starting a consulting business, SaaS, or e-commerce, you can enjoy the structural advantages a Maine LLC provides.

Ready to get started?

👉 We Got You Covered with LLC Setup. Bizstartz will handle everything from state filing to EIN and bank account setup. Everything you need is in one place!

Establishing a Limited Liability Company (LLC) in Kansas is a brilliant choice for your business.

Kansas is hassle-free and inexpensive for U.S. and foreign entrepreneurs interested in doing business in the U.S. Kansas also provides solid legal protections, which is a plus.

This comprehensive guide goes step by step on naming your business, completing the necessary paperwork for an LLC, securing your tax ID (EIN), opening a bank account in the U.S., and ensuring your business complies with the law.

Why a Kansas LLC?

Out of the U.S., most entrepreneurs forming an LLC think of Wyoming, Florida, and Delaware. Kansas is also regarded as highly business-friendly, in particular for small and medium enterprises, and for this reason is a great choice for many.

1. Affordable and Transparent Costs

Setting up an LLC in Kansas is inexpensive with online submissions costing only $160. Unlike some states, Kansas does not impose hefty franchise taxes, surprise hidden taxes, or unreasonable taxes. This makes Kansas an excellent choice for small businesses.

2. Easy Compliance Requirements

Among all the U.S. states, Kansas has the most simple and straightforward compliance systems. Business owners in Kansas need only submit one Annual Report each year and face no intricate, state-level business taxes. The uncomplicated business taxation system provides ease to new business owners in administrative compliance stress.

3. Business Management Freedom

Kansas LLCs uniquely permit the greatest flexibility. You can set up your LLC as either “member-managed,” meaning it is run directly by the owners, or “manager-managed,” meaning it is run by appointed managers. For international entrepreneurs, this can be a great advantage, as they may want to assign local representatives.

4. Strong Legal Protections

Having an LLC means that your personal assets remain as a buffer from business liabilities. Business debts or lawsuits are the business’s problems. In the state of Kansas, your personal savings, home, and cars are safe from liability claims while your business is operating.

5. Best for International LLC Registrants

Kansas does not require American citizenship or residency to register an LLC. This is great for entrepreneurs in Asia, Europe, or Africa to enter the U.S. market.

Step by step process to form an LLC in Kansas

Here is a detailed explanation of everything you need to do to form your Kansas LLC.

Step 1: Choose a Name for Your Kansas LLC

The first thing you need to do to form your LLC is to come up with a name that is acceptable under Kansas law, and is unique.

Your LLC’s name must:

• Include the words “Limited Liability Company” or the abbreviation “LLC” or “L.L.C.”.
• Avoid restricted words like “Bank,” “Insurance,” or “Corporation” unless you have proper licensing.
• Be distinguishable from all other registered Kansas businesses.

Also, be sure that all other registered Kansas businesses do not have the name you intend to use. You may use the Kansas Business Entity Search on the Kansas Secretary of State website to verify.

If you find an available name but you do not intend to register the LLC shortly, you may reserve the name for 120 days by submitting a Name Reservation Form and a name reservation fee of $30.

💡 Tip from Bizstartz: Choose a name that is consistent with your business and is memorable. If you plan to sell online, you may want buy the matching domain name (.com).

Step 2: Appoint a Kansas Registered Agent

All LLCs in Kansas are required to have a Registered Agent. The Registered Agent is a person or company you appoint that will accept legal documents, government mail, and compliance documents for your business.

Your Registered Agent needs to:

• Be a Kansas resident or a registered business in Kansas.
• Have a physical Kansas address (no P.O. boxes please).
• Be reachable during normal business hours to receive legal mail.

For international founders, you can’t be your own Registered Agent. Professional service will be needed.

✅ Bizstartz Registered Agent Service:

We offer Registered Agent services anywhere in the United States, Kansas included. We’ll keep your business compliant, handle all official mail, and ensure you never miss any important legal correspondence.

Step 3: File the Articles of Organization

The Articles of Organization is an important document that makes your LLC official in Kansas. It has important information about your business.

You can submit this document to the Kansas Secretary of State:

• Online through the Kansas Business Filing Center, or
• By Mail, if you choose the paper form.

Filing Fees

• Online: $160
• By Mail: $165

Required Information Includes

• LLC name and business address
• Registered Agent’s name and address
• Organizer’s name and signature
• Duration of the LLC (perpetual or limited)
• Optional: Business purpose

Once the state approves your filing, you’ll receive a Certificate of Organization, which confirms your LLC legal existence.

Processing Time

Online filings are processed within 1–2 business days. Mails submissions may take up to 7–10 business days.

Step 4: Draft an Operating Agreement

An Operating Agreement is not mandatory in Kansas, but it’s one of the most important documents for your LLC.

This agreement is for your LLC’s internal business documents which will cover:

• Member ownership percentages
• Voting rights and responsibilities
• Profit and loss distribution
• Management structure
• Rules for admitting or removing members
• Dissolution process

Even single-member LLCs should have an Operating Agreement. It helps demonstrates that your business is a separate legal entity, which is important for limited liability shields.

Bizstartz helps create a customized Operating Agreement based on your LLC’s size and structure as well as member arrangements to ensure it meets U.S. legal standards and international business requirements.

Step 5: Get Your EIN

An Employer Identification Number (EIN) is issued by the IRS and is considered your business’s Social Security Number. It is fundamental in several activities like:

• Opening a U.S. business bank account
• Hiring employees
• Filing business tax returns
• Signing up for payment processors (Stripe, PayPal, Shopify, etc.)
• Gaining trust from vendors or customers

You can obtain your EIN for free from the IRS website. However, if you are a non-U.S. resident and do not have a Social Security Number (SSN), you will not be able to complete the online application. You will need to fill out and send in Form SS-4 by mail or fax.

📩 Bizstartz EIN Service: We assist international clients acquiring an EIN without an SSN or ITIN. We take care of everything, including communicating with the IRS, so you can complete the other components of your business setup.

Step 6: Complete Your Kansas Annual Report

To keep your LLC in good standing, the Secretary of State requires you to file an Annual Report.

Key Details:

• Due Date: Every Year April 15th
• Filing Fee: $50 if filing online $55 if filing by mail

Required Information:

• Name of your LLC and ID number
• Members’/Managers’ names and addresses
• Principal office address

If you do not file your Annual Report on time you will incur penalties and your LLC may be administratively dissolved.

💡 Pro Tip: Set a reminder or have Bizstartz manage your compliance calendar to avoid missing deadlines.

Step 7: Enroll for State Taxes and Business Licenses

Certain business types necessitate state tax registration and/or local business licenses. Taxes and business licenses might be required for:

• Sales Taxes: If you are selling physical items or providing taxable services in Kansas, you need to register for sales taxes.
• Withholding Taxes: If you hire employees, you need to register taxes on employee wages.
• Local Business Licenses: In Kansas, some cities and counties demand extra licenses for retail shops, food businesses, and specific services.

Most state taxes can be registered online through the Kansas Department of Revenue.

Step 8: Open Your Business Bank Account in the U.S.

After you received your LLC and EIN, the next step for your business is getting a U.S. business bank account. This would be the first step in actually separating personal and business finances, which is vital for maintaining liability protection.

Most U.S. banks will ask the following documentation:

• Verified and Approved Articles of Organization
• EIN Confirmation Letter
• Operating Agreement
• Some form of Identification

Most banks in the U.S. need at least one member to be there in person. However, Bizstartz works with Fintech banks that lets you open your business bank account remotely, which is great for international business owners. You can open your account online through Bizstartz.

💳 Bizstartz Bank Account Setup:

Without having to travel to the U.S., we assist non-U.S. founders in getting verified U.S. business bank accounts through reputable providers, like Mercury, Relay, or Wise.

Kansas LLC Cost Breakdown

Item	Cost
State Filing Fee (Online)	$160
Registered Agent (Annual)	$99–$150
Name Reservation (Optional)	$30
Annual Report	$50
EIN for Non-U.S. Owners (via Bizstartz)	$95
Operating Agreement Drafting	$50–$75

💰 Estimated Total (First Year): Around $350–$500, depending on whether you use professional services.

Foreign Entrepreneurs: How to Form a Kansas LLC from Outside the U.S.

International founders can form and own a Kansas LLC 100% remotely. There is no need to be present in the U.S., or have a U.S. Social Security Number.

You will need the following:

• A Registered Agent with a Kansas address.
• A Business Name that is state-approved.
• A Valid Passport for identification.
• An EIN for tax and banking purposes.
• Optionally, a U.S. business address for mail forwarding.

With Bizstartz, international entrepreneurs can manage all steps for their LLC formation online. This includes the registration of the name, application for the EIN, setup of the bank account, and tax guidance.

Maintaining Your Kansas LLC

After the LLC is formed, ongoing compliance is needed to keep the business in good standing. To stay compliant, you must:

• File Annual Reports by April 15th every year.
• Keep a Registered Agent and Registered Office for the LLC.
• Financial records must be kept and business banking must be separated.
• Notify the Secretary of State of address or ownership changes.
• Stay informed about and fully comply with all federal and state tax filings.

To ensure clients avoid compliance pitfalls, especially international clients, Bizstartz offers ongoing compliance services.

How Bizstartz Assists You in Establishing a Kansas LLC

At Bizstartz, we make it easy for both U.S. and non-U.S. business owners to Start and manage U.S. businesses.

What Our Kansas LLC Formation Package Includes:

• Submission of your Articles of Organization
• Kansas Registered Agent services
• EIN (Tax ID) application for U.S. and non-U.S. owners
• Operating Agreement
• Beneficial Ownership Information (BOI) with FinCEN
• U.S. bank account opening assistance
• Compliance and tax guidance

You focus on business expansion and let Bizstartz handle the compliance and all the paperwork.

Final Thoughts

An LLC in Kansas provides inexpensive simplicity and flexibility with robust legal protections. Kansas is a wonderful state for your business, whether you are a freelance seller, an international entrepreneur, a small business owner, or an eCommerce seller.

Bizstartz is here to provide you the Kansas LLC formation services you need, taking you through the process in a straightforward manner, from the registration to compliance.

🚀 Begin Your LLC Journey with Bizstartz

Set up your LLC in Kansas in a fast, stress-free, and compliant manner.

👉 Start today by going to Bizstartz.com or calling one of our professionals.

One of the easiest ways to start an entrepreneurial venture in the modern world is by launching an e-commerce business. All you need is an internet connection and a laptop to start selling goods across the globe on platforms like Shopify, Amazon, Etsy, and eBay.

Many new sellers, however, start with product sourcing and marketing before considering the following question:

“Do I need an LLC to start an e-commerce business?”

Legally speaking, you do not need an LLC in order to start selling anything online. You can work as an individual seller. The long term answer will typically depend on the vision you have for the business, how much you are willing to risk, and how professionally you want to conduct the business.

Let’s explore this in depth.

1. You Can Start Without an LLC

If you will be venturing into e-commerce for the very first time, you can start an online store without registering as an LLC. A lot of entrepreneurs begin as sole proprietors in the U.S and as individuals in other countries.

What this means in practice:

You can simply create an account on Shopify, Amazon, or Etsy under your personal name, list products, and start receiving payments via PayPal, Stripe, or a bank account. It’s fast, cost-effective, and allows you to test the waters before committing to formal structures.

The risks of starting without an LLC:

The downside is that as a sole proprietor, there is no legal separation between you and your business. If a customer sues you over a defective product, or if you run into debt with suppliers, your personal savings, car, or even your home could be at risk.

Practical example:

Imagine you sell phone chargers, and one catches fire and damages a customer’s property. Without an LLC, you could personally be held liable for damages. With an LLC, the business, not you personally, would be responsible. The cycle here indicates that to begin with, every business up to a certain level makes a quick and easy analysis.

2. Why Do Most Entrepreneurs Prefer an LLC

It is not mandatory, but an LLC is relatively beneficial for an e-commerce seller. Here’s why:

Limiting Liability Exposure

Making an LLC helps in distinguishing personal valuables from business valuables. In the case of a lawsuit, no personal assets such as money, a bank account, a car, or even a home is lost. This is very critical for e-commerce sellers dealing with shipping, potential product liabilities and product refunds.

Building a Reputation

Operating under a registered business helps in building a reputation. For instance, “EcoGlow Products, LLC” is better than “John Smith.” This is very important in applying for wholesale accounts or negotiating with suppliers, partners, and manufacturers

Flexible Taxation

An LLC has multiple taxation options available:

• Taxation as a sole proprietorship by default and a single member LLC, or as a Multi member LLC partnership.
• Electing an S Corporation status for U.S. residents in order to lessen on self-employment taxes.
• Electing as a C Corporation if profit reinvestment is the goal,

This provides e-commerce sellers with the ability to tackle any growth in their company as a result of the business expansion.

Easier Banking & Payment Processing

Banks and payment processors prefer and require a defined business structure.

The following steps become easier:

• Application for business accounts with US banks
• Approval for PayPal and Stripe accounts
• Merchant accounts and e-commerce accounts financing.

These services are most easily available to foreign residents or non US residents.

3. When You Might Not Need an LLC

As useful as LLCs can be, do consider these situations to know when to skip LLCs.

• Hobby sellers: If you craft a few necklaces and sell them on Etsy, or if you dropship as a side gig, not giving too much thought to an LLC makes sense.
• Low-risk products: Supplements, cosmetics, and electronics are much more exposed to liability than digital products, online courses, and print on demand shirts.
• Idea validation stage: Many sellers prefer to test a product idea for a few months. Having said that, waiting too long could expose you to unnecessary risk if your sales grow wildly.

Also, in the event that you receive a dispute from a customer, you would be better off having an LLC. When Should You Start Thinking About Setting Up an LLC

4. When an LLC is highly recommended.

E-commerce businesses that have moved past the ‘trial stage’ are more profitable.

Establishing an LLC brings about the following benefits.

• Physical products that present potential risk are sold: Supplements, beauty products, electronics and baby items are high risk items.
• Scaling of the brand is easier: Building a company facilitates better relations with manufacturers, influencers and wholesale buyers.
• Use of Amazon and Walmart for selling is easier: Most of these platforms prefer registered accounts, especially for the Brand Registry.
• You have partners or investors: Increase in the number of partners and investors also increases the profits, ownership percentages, and decision making powers.

You can grow your business without the fear of losing your personal funds with an LLC.

5. What About Taxes?

The taxes associated with operating an online store are not easy to deal with. Setting up an LLC helps to deal with taxes in a more organized manner.

Without LLC: Taxes on income are individually reported on a tax return. American citizens are residents report income on a personal country tax return. There are non-residents that earn income from USA but they only submit taxes in their country.

With LLC:

• U.S. citizens and residents do not have to pay self-employment taxes do not have to pay self-employment taxes if they elect to be treated in a certain way.
• Non-residents are able to sell on Amazon and Shopify using a US LLC and are not subject to US tax obligations provided they do not have US businesses. They still have to report taxes in their country.

This is why LLCs are popular among sellers on the rise. The growth in sales is the reason for setting up an LLC then.

6. How to Make a Choice

In order to help with this, we have it framed as a simple decision making process.

Are you a beginner testing a new concept? Start out without an LLC to keep the expenses as low as possible.

Are you consistently selling, while also reinvesting the profits? Then it would be a good idea to form an LLC, as this will help protect your assets, as well as build your reputation.

Do you want to expand your business all over the globe? if this is the case, then an LLC is almost mandatory for tax purposes, banking purposes, and also for global brand recognition.

How Bizstartz Helps

At Bizstartz, we assist entrepreneurs, particularly those living outside the United States, with forming LLCs and providing the necessary tools for further development. This includes:

• Establishing an LLC in any of the fifty states
• Acquiring an EIN for tax obligations
• Opening a U.S. business account (a requirement for merchants on Amazon and Shopify)
• Approval of payment processing services (via Stripe, PayPal, etc.)
• Setting up an Amazon seller account
• Provision of bookkeeping and compliance assistance
• Filing of BOI

Our goal is to remove the hassle from business formation in the U.S. so you can concentrate on selling and growing your e-commerce business.

Final Thoughts

While you do not legally require an LLC to operate an e-commerce business, there are many advantages that come with it. These include limited personal liability, business credibility, flexible taxation, and easier access to financial services.

If you are selling as a hobby, you may not need to set up the at once. However, if you plan to establish a sustainable business model, expand internationally, and grow, then the LLC is the way to go.

As potential entrepreneurs setting up a Limited Liability Company (LLC) in the United States will most likely ask the question which is “How many members can go in an LLC?”

This is important because the members also determine ownership and the management structure, and also directly influences the taxation and future approach to the business growth.

This applies to individuals, family owned businesses, or any group to foreign entrepreneurs setting up business in the United States. Knowing the LLC rules will enable any foreign businesses to better serve their LLC members.

In this guide, we’ll go deeper into:

• What an LLC member is
  
• The minimum and maximum number of members allowed
  
• The difference between single-member and multi-member LLCs
  
• Ownership rules for non-U.S. residents
  
• How membership affects taxation, liability, and management
  
• Common misconceptions about LLC membership

What Is an LLC Member?

To start with, an LLC member is a business owner, and in this scenario, an LLC member is. Unlike a corporation that subdivides their business and issues shares to their stockholders, the LLC assigns a membership interests to their members.

Each member that is a business owner, usually more than one, will own a percentage of the LLC which is determined and agreed upon in the company’s Operating Agreement. Also ownership can in some instances depend on the amount of capital a member contributed.

Members can be:

• Individuals – with residents such as citizens, green card holders, and foreign nationals.
• Other business entities – with corporations, other LLCs, or partnerships.
• Foreign companies – as a non-U.S. business can own part or all of a U.S. LLC.

This flexibility in membership (license) is the reason LLCs are widely used, particularly by international business owners who may be unable to own other entities, such as S-Corporations.

How many members is an LLC allowed to have?

Minimum: An LLC is required to have at least one member. Otherwise, the company will be unable to exist legally.

Maximum: An LLC has no restriction as to the number of members it can have.

The lack of restriction makes LLCs one of the most flexible business entities in the US. Start as a one-person business and add many partners, investors, or even family members as co-owners.

For example:

• S-Corporations are restricted to 100 shareholders, all of whom must be citizens or residents of the US.
• Partnerships default (do not) offer limited liability, and require at least two partners.
• C-Corporations have no restriction on the number of shareholders, but the business has stricter compliance and double taxation.

No need to worry about the LLC as you have both the facets of a company (greater than 1 member) and ease of compliance and flexible taxation.

Single-Member LLC (SMLLC) vs. Multi-Member LLC (MMLLC)

1. Single-Member LLC (SMLLC)

Freelancers, consultants, and small business owners looking for liability protection and easy taxation usually opt for a single-member LLC, which is the most common type of LLC.

Key Features:

• Tax Treatment: Single-member LLCs are disregarded entities for the IRS and the owner’s income has to be reported in a Schedule C. However, owners can elect for s corporation and c corporation taxes if it is beneficial.
• Control: Owners are free to make any business decisions since they have full ownership.
• Simplicity: Owners can skip the headaches of complicated agreements with co-owners.
• Liability Protection: Owners are still protected from personal liability alongside business liability.

Best For: Solo entrepreneurs, small e-commerce business, consultants, and international entrepreneurs without partners looking to penetrate the US market.

2. Multi-Member LLC (MMLLC)

Families, partnerships, and start ups with multiple co-founders usually opt for a Multi-Member LLC, which is a type of business entity with two or more owners. Group of investors can also pool resources to set up a Multi-Member LLC.

Key Features:

• Tax Treatment: LLC’s are taxed as partnerships by default. Profits and losses are divided and taxed as per the ownership percentage. The LLC doesn’t pay federal income taxes, unless it elects to pay as a C corporation.
• Flexibility in Ownership: Profits can be split in any way the members agree to (not necessarily equal).
• Management: Requires an Operating Agreement to define roles, voting rights, and decision-making processes.
  
• Growth Potential: Easier to bring in new members or investors.

Most suitable for: international teams, family businesses, startups with co-founders, and companies that intend to expand with multiple investors.

Can Non-U.S. Residents Be LLC Members?

Yes. An LLC can have members that aren’t United States citizens, as there are no ownership restrictions based on citizenship or residency. This makes the LLC the most foreign-friendly entity type in the United States.

• A foreign national can own a whole or partial stake in an LLC.
• A foreign entity is able to serve as a member of an LLC.
• Having an ITIN instead of a Social Security Number is acceptable for tax purposes.

This is especially useful for global entrepreneurs wishing to sell on Amazon, Shopify, or Etsy, or for those wanting access to U.S. payment processors and bank accounts.

Why Does It Matter How Many Members a Business Has?

The number of members in an LLC has a strong impact on various facets of the business:

1. Taxation

• A Single Member LLC (SMLLC) is automatically taxed as a sole proprietorship and is far easier to deal with at the expense of being less tax-planner friendly.
• A Multi Member LLC (MMLLC) is taxed as a partnership by default and has an enormous amount of freedom to structure the split of profits and losses.

Both single and multi-member LLCs have the option of being taxed as an S-Corp or a C-Corp if it proves to be more beneficial from a tax standpoint.

2. Management and Decision-Making

• One member LLCs have an easier time with decisions.
• Multi-member LLCs have to have an Operating Agreements which help structure the business in a way to avoid conflicts and fulfill the obligations more clearly.

3. Liability Protection

Both SMLLCs and MMLLCs have limited liability. Courts have a tendency of giving more consideration to the protection of a multi-member LLC if it has relevant agreements and proper business practices.

4. Growth and Investment

• Single Member LLCs are easy to run but often struggle to acquire unsought investments.
• Multi-member LLCs simplify the business as more partners and investors can be invited easily due to the flexible division of ownership control.

Advantages of No Member Limit in LLCs

• Scalability: Start small as a single-member LLC and expand as new members join.
• Attracting Investment: Capital investment by different members can be done without limits and restrictions.
• Flexible Ownership Structure: Ownership can be split in any ratio as per the agreement by members.
• International Market Potential: Foreign individuals and entities can own LLCs unlike S corporations.
• Ease of Transition: A business can begin with a single member and subsequently transform into a multi-member LLC without the need to create a new entity.

LLC Membership – Misconceptions and Misunderstandings

An LLC can have an unlimited number of members.

– Members of an LLC can be an unlimited number of individuals.

Members of an LLC have to be US Citizens.

– Foreign individuals and foreign businesses can also be members of an LLC.

Members of an LLC are required to have equal ownership.

– Members can have ownership percentages of their choosing (e.g., 70/20/10).

It is overly complicated to add new members.

– Adding new members is straightforward although it does involve changes to the Operating Agreement and informing the state in certain instances.

Single-(1) member LLC does not have any protection

– A single-member LLC is managed improperly if it does not protect the member’s personal assets and business finances. Otherwise, full liability protection is afforded.

Conclusion

An LLC can have an unlimited number of members, and for an owner willing to either work alone, or have multiple partners, bringing in several investors, plenty of flexibility is also provided.

We help international and local business people to open bank accounts and are compliant with US laws. They help in the formation of single-member and multi-member LLCs.

Frequently Asked Questions (FAQs)

1. Is It Possible To Have One Member In An LLC?

Most people have single-member LLCs, and it is legal.

2. How many members are allowed to join an LLC?

There is no limit to how many members can join an LLC.

3. Can a foreign citizen become a member of an LLC in the United States?

Yes. members of an LLC do not have to be citizens or residents.

4. Do all members have the same amount of voting rights?

Not in all situations. Voting rights are defined in the Operating Agreement.

5. How are profits shared among the members of an LLC?

Profits can be shared in equal or agreed upon unequal ratios.

6. Can a corporation or other LLCs become members of an LLC?

Yes. other functionalities can also be members of the LLC.

7. Do single-member and multi-member LLCs attract different taxation?

Yes. By default, single-member LLCs are taxed as sole proprietorships and multi-member LLCs are taxed as partnerships. But, both can decide to choose a different tax classification.

✅ Ready to form your U.S. LLC? Bizstartz helps you every step of the way, from formation to banking, EIN, ITIN, and compliance.

Like many countries around the globe, the United States allows owners and managers of small businesses to form a limited liability company (LLC) as a preferred company type.

Most entrepreneurs appreciate the limited liability company for the ease of formation and operation, the available options for company structuring, operational liability coverage, and unique taxation attachment for business entities.

No matter whether you live in the US or hail from a foreign country, you can appreciate the fact that an LLC will allow you to enhance your image and protect your other possessions.

But, the reality is that a lot of business people who try to establish a new LLC go off the tracks. They, for instance, underestimate complex issues that can influence your level of success. The reality is that an LLC is not simply a form that you fill in. There is a level of strategy that must be involved along with a clear compliance to state and federal regulations.

This paper will discuss the reasons for not establishing an LLC, the nine most frequent mistakes and how entrepreneurs can avoid them.

1. Not Researching the Right State for Formation

Selecting the formation state is without a doubt the most critical choice you will make. Most first timers in business form LLC in Delaware, Wyoming, and Nevada, simply because they are called business friendly states. They never wonder if these states are suitable for them.

• If you are a U.S. resident (business scenario): By law, you are supposed to conduct your primary business activities at the location of the LLC. For example, if you are a resident of California and are doing business as a coffee shop there, going to Wyoming will not cut costs. You will have to register as a foreign LLC and pay additional fees.
• If you live outside the U.S. (business scenario): For international entrepreneurs, states like Wyoming, Delaware, and New Mexico are beneficial due to their privacy and ease of compliance, and low annual fees.

Why this matters: Failing at the primary step of decision making due to a lack of information can comply compliance and inflate costs due to tax burdens.

How to avoid it: Research the pros and cons of each state. Focus on the location of your potential customers, the location of your business activities, and your long-term plans.

2. Picking a Business Name That is Too Generic

One of the most valued intangible assets of the business is the name of the LLC. However, many entrepreneurs make the error of not properly branding themselves and not checking the name for availability.

Some common errors include:

• Naming the business as something which is already taken within the states primary LLC register.
• Ignoring the U.S. Patent and Trademark Office, and assuming the name is not trademarked.
• Choosing a name for a company that does not align with the product offered and that is difficult to pronounce and understand is a mistake.
• Forgetting to check to see if the domain name and social media user names have been taken is another mistake.

Why this is important is that a name is too similar to another or too close to a name that is trademarked. Lawsuits could be initiated or rebranding could be necessary which is an extremely costly mistake.

How to avoid it:

• Run a state name availability search.
• Looking through the trademarked companies on the URL.
• Social media and domain name availability.
• Pick a name which shows your determine values regarding brand and growth.

3. Not having an Operating Agreement Drafted

Not all states may prescribe an operating agreement. However, operating without one comes with a lot of risks.

An operating agreement will strategically define how the LLC is managed. This will include:

• Ownership percentages and member contributions
• Distributing the profits and losses of the LLC.
• Rules for voting and making important decisions.
• How members will be added or removed.
• Rules that will apply to a member that chooses to leave or is deceased.

Why this is important is that absent from the operating agreement, the LLC is governed by the state. This may not be in your best interests. A member could be in a state that mandates all profits be shared equally. This could lead to a lot of unhappiness if one member made a bigger investment.

How to avoid it: Avoid and mitigate disputes and ineffective structures by creating an operating agreement from the outset, even when the company has one member. They can also improve liability insurance’s protective and plaintiff-proof functions.

4. Altering Business and Personal Funds

Efficiency is the primary reason why many entrepreneurs start their business activities from their personal bank accounts. This is a very severe error.

Why this matters:

• Your personal assets are exposed to loss as a result of the reckless assumption that you are a sole proprietorship.
• Accounting and taxation become far more sophisticated.
• You stand to lose the liability protection the court grants, if you are found to have treated your LLC as a disregarded entity.

How to avoid it:

• Apply to the IRS for an Employer Identification Number.
• Open a business bank account.
• For business purchases, use personal credit cards.
• Thoroughly document all revenues and expenditures.

5. Underestimating Tax Obligations

There is flexibility that can be found with LLCs when running a business, but it is this very freedom that takes unprepared business people by surprise when it comes to taxation.

Common tax misconceptions include:

• The assumption that LLCs do not pay any taxes.
• Self-employment taxes are oftentimes ignored.
• Unresolved matters from previous quarters.
• Using inappropriate tax classification (i.e. an LLC that has not elected to become an S-Corporation.)

Why this matters: Poor management of taxes can result in penalties from the IRS, unanticipated invoices, as well as cashflow insufficiencies.

How to avoid it:

• Consult a tax professional before filing your LLC.
  
• Learn how federal, state, and local taxes apply to your industry.
  
• Understand pass-through taxation vs. corporate taxation.
  
• Use accounting software or hire a bookkeeper to stay compliant.

6. Ignoring Required Permits and Licenses

The legality that an LLC provides is not a reason to assume that an LLC can start doing business freely. There is a range of business activities that may require:

• A federal business license (for the sale of certain regulated products, or operating certain regulated activities like aviation).
• A state business license (for certain professions such as law, accounting, or the provision of medical services).
• Local licenses (including, but not limited to, food service licenses, and permits for the collection of municipal sales tax of certain retail operations or for zoning).

Why this matters: The absence of certain permits, or operating within a certain jurisdiction without the proper legal documents, may attract penalties such as fines, restrictions of the business activities, or legal action.

How to avoid it: Look at the federal, state and local requirements for licenses and permits before the business is operational.

7. Neglecting the Protection of Intellectual Property

The assets of a business that are in the form of a name, logo and creative works are critical, and The failure to protect them is an oversight that most budding entrepreneurs are likely to make.

Common mistakes include:

• Neglecting to trademark a business or registered the logo associated with it.
• Failing to register a domain name associated with the business.
• Neglecting original content copyrighting ( blogs, videos, courses, etc.).

How does this impact your brand: Competitors can siphon your brand equity, resulting in expensive rebranding or lawsuits.

How to do this:

• Apply for a trademark with the USPTO.
• Purchase the domain names and corresponding social media usernames.
• Consider copyrighting any original works.
• Explore patents if you are working on a new product.

8. Ignoring the Follow-Up Compliance Obligations

The initial setup of the LLC may seem to many entrepreneurs as the end of the matter. However, states impose ongoing obligations with respect to the LLC.

• Ongoing requirements may include:
• Filing annual or biennial reports.
• Payment of franchise tax or annual state minimum tax.
• Keeping a registered agent.
• Alter the records for the LLC if there is a change in ownership.

What is the impact on your brand: Failing to meet deadlines imposed for the payment of the obligations will result in late fees, fines, or even the administrative dissolution of the LLC.

How to do this:

• Obtain a compliance calendar.
• Hire a registered agent service (we can help with this at Bizstartz).
• Establish deadlines for tax payment and annual filings.

9. The Overestimation of Individual Competence

Considering the possibility of filing the LLC and having the supporting documents prepared yourself, a lot of people do not appreciate the gravity of the situation in the matter of compliance with the tax and licensing.

Why is this an important matter:

• There are delays in the approval of your entity if any documents are filed incorrectly.
• Infringement of the imposed compliance requirements can result in penalties and fines.
• Without assistance, you might not maximize savings on your taxes.

What you can do to prevent this:

• Engage with Certified Mail and Taxation LLC or similar firms regarding LLC formation, compliance, and taxation.
• Utilize providers, such as Bizstartz, for LLC Registration, EIN, BOI Filing, Registered Agent services, and recurring compliance.

Final Thoughts

One of the first and most important steps in starting your own business is forming an LLC. Methinks it is a no-brainer. If, however, you go about it the wrong way, it is a complete waste of time. First understand these nine mistakes in order to save time and money, protect your self and assets and position your business for any future ventures.

You can start right and take the help of Bizstartz. LLC Formation, EIN, Registered agents, BOI filing, Bank Account Set Up and much more is provided by Bizstartz. Their services are tailor made for local and international clients.

FAQs on LLC Formation

1. Do I need to physically reside in the U.S to be able to form an LLC?

No, you do not. Bizstartz helps international clients with the formation of LLCs in Wyoming and Delaware which do not require physical presence.

2. How much does an LLC formation cost?

This depends on the state. The cost falls anywhere between $50 and $500, not including additional recurring yearly fees. Fees for registered agents, EIN, or BOI filing, come at an additional, optional cost.

3. Is it necessary to hire a lawyer for LLC formation?

No. The steps can be simplified without employing a lawyer by getting help from an LLC service provider like Bizstartz.

4. Can one person own an LLC?

It is legal for one person to own an LLC. One-member LLCs are relatively common and provide the same liability protection as an LLC with two or more members.

5. How long does it take to form an LLC?

Each state has its approval times with some states taking a few days and others taking weeks. On average, approval times are a few days to several weeks. Bizstartz helps expedite the approval process by certifying that all documentation is collected and filed in the proper order.