Choose the location of the LLC Company
In each of the United States states, there is a different regulation regarding the manner of establishment of an LLC and the tax aspects that apply to it. The variability is reflected in the requirements of the law for registration purposes, the scope of the fee and the applicability of various state taxes and levies. Because of this, the location of the company is important – its obligations and rights will be derived from the relevant regional laws. An informed choice of the location of the establishment will ensure relief from the regulatory, bureaucratic and tax burden. It is also important to apply for ITIN before taking any step.
This is a critical step in the question of the success of the investment, and we recommend receiving professional advice that will adapt the location to the specific needs of your investment.
Choose a company name
Company registration requires choosing a name. Each country has different rules regarding the choice of names for companies, but in general it is possible to point to three basic rules:
- The name must include the suffix – Limited liability Company
- The name is available – there is no other company that holds the same name.
- The name does not mislead to think that this is a government authority.
Editing and submitting incorporation documents Articles of Organization
The association documents are official forms (which vary in each country), which are basic private matters about the company: name, purpose, address and the like. The forms must be submitted to the offices of the authority responsible for the matter in the country in which the company is chosen to be established. The submission of the documents is accompanied by a fee for the establishment of the company.
Drafting the Operating Agreement Terms and Conditions
Not all countries have a mandatory requirement, but if it is a company with several partners, the agreements between them should be anchored through a formal agreement.
Bylaws will usually include the following details:
- Organizational details: Where and when the company was established, what are the company’s goals who are the partners and what is the division of ownership among them.
- Decision making: how to make managerial decisions in the company.
- Structure: Details of the company’s structure, division of ownership, and reference to additional capital investment in the future (as required).
- Distribution: How the profits and losses are divided between the partners.
- Changes in the composition of ownership: reference to possible changes in the future and under what circumstances and manner will be made.
Issue EIN number
The EIN is an identification number for the U.S. tax authorities. Opening an account, opening a file with the Tax Authority and other actions depend on the presence of this number. Therefore, immediately after the submission of the incorporation documents, obtain an EIN number must be issued.
LLC may be the ultimate form of incorporation for many investors: it guarantees legal protection and tax transparency and its establishment process is relatively simple. However, despite its relative simplicity, its establishment should not be taken lightly. Questions such as adapting the form of incorporation to the needs of the investment, the ultimate location for its establishment, and the wording of incorporation documents – require professional attention and knowledge. Preliminary strategic planning and ongoing consulting will avoid unnecessary expenses and procedures and will ensure optimization of your investment.