Matt Horwitz - Founder and Educator at LLC University

How does forming an LLC protect me?

An LLC helps protect your personal liability, meaning, it helps protect your personal assets (bank accounts, home, vehicles, and any valuables) from your business in the event your business gets sued. Think of the LLC as creating a legal “barrier of protection” between your business and your personal life.

What’s the difference between a Foreign LLC and a Domestic LLC?

When most people hear the word “Foreign LLC” they usually think this is an LLC formed outside of the United States. This is not the case. A Foreign LLC still refers to a US company. A Foreign LLC is an LLC that was formed in one state, but is now registering (also referred to as “qualifying”) to do business in a new state. A Domestic LLC is an LLC that was formed in its “home state” and that operates in this state.

Foreign LLC Fees by State

The table in this article shows Foreign LLC registration fees (“qualification fees”) for all 50 states. The average Foreign LLC registration fee in the US is $186. The names of the forms required to register a Foreign LLC vary widely, but some of the most common names are “Foreign LLC Registration”, “Application for Registration of Foreign LLC”, and “Application for Certificate of Authority”.

What is a Foreign LLC?

A foreign LLC is an LLC that was originally formed in one state but then registered to do business in another state. In essence, the LLC is “foreign” to the new state. The reason for this type of terminology is that every single state is governed by different laws. A Foreign LLC is not an LLC that is formed outside of the United States. The requirement to file for a Foreign LLC is usually to expand one’s business operations or to open an additional retail or brick-and-mortar location in a new state.

What is a Multi-Member LLC (MMLLC)?

A Multi-Member LLC is abbreviated MMLLC and is the term used for an LLC that has 2 or more Members (owners). There are no limits* to the number of Members a Multi-Member LLC can have and the LLC Members can be individual people, or they can be companies (like another Corporation or LLC). The purpose of starting a Multi-Member LLC is protect the personal assets of the Members. LLCs – Limited Liability Companies – do just that; they limit the amount of liability the owners would be exposed to in the event of a lawsuit.

What is a Single-Member LLC (SMLLC)?

A Single-Member LLC, abbreviated SMLLC, is an LLC with just 1 owner. An LLC owner is referred to as a Member, hence the name “single member” LLC. The purpose of forming an LLC is to protect the personal liability of the owners. Forming an LLC separates your personal assets from that of the business. All 50 states allow for Single-Member LLCs and this is the most popular type of LLCs formed in the United States.

What 3 States Have LLC Newspaper Publication Requirements?

The 3 states that require LLCs to publish ads in a newspaper are Arizona, Nebraska, and New York. After your LLC newspaper ads have run, you will receive back an Affidavit of Publication from the newspaper. You’ll then file this Affidavits with the Secretary of State (or similar office).

How to Find an Accountant for Your LLC

This is advice we share on a weekly basis. After your LLC is formed, you need a good accountant. But how do you go about finding one? This technique allows you to pair 10+ accountants up against each other, use the process of elimination, and also trust your gut feeling and intuition when it comes to forming long-term business relationships.

My thoughts on forming an LLC with LegalZoom

In this review, we discuss the LegalZoom LLC packages. We take a deeper look at their fine print. And we discuss if LegalZoom is the best option to form an LLC, or if it’s a better idea to go with an alternative.