Establishing an LLC

Each state sets its own laws and policies for these entities, as well as the taxes and fees imposed upon them. All states share the regulatory obligation to have a mailing address in that state, and to have an agent on its behalf to receive said mail. Without an in-state address, an LLC cannot be established. The LLC is subject to a legal agreement called operating agreement, which is the foundation of the business’s central control as deemed fit by the owners.
The owners of an LLC are called members, and most states do not impose a limit on how many or who those members are. In that manner, aliens and companies can also be LLC owners.
The distinct advantage of using an LLC is the ability to combine between the legal benefits of a Corp, such as limitation of liability, and the operational resilience and tax benefits of a partnership. From a taxation perspective, an LLC is, by default, a transparent entity, meaning that for purposes of tax calculation, the tax rate, offset of losses, the taxable income and losses of a transparent entity will be regarded as the income or losses of its members, according to their share of rights and profits in the company. An LLC with two or more members will be regarded as a partnership and will file the informative form 1065, whereas a single-owner LLC will be regarded as a disregarded entity whose owners will include losses and profits in their personal 1040 form.
There is also the option of making the LLC non-transparent like a Corp, i.e., a limited liability company owing double taxes. Another option is selecting the S-Corp policy, which is only available to American owners.