Register a Company

First recognized in Wyoming, formed by members, Limited Liability Companies or LLCs are only recognized at a state level and disregarded by IRS. This means, that LLCs may be subject to state taxation but do not pay federal taxes or file any returns. Does this exempt an LLC member from federal taxes? No. Indeed, IRS automatically defaults single member LLCs to sole proprietorships and multi member LLCs to general partnerships and sets exactly the same tax filing and paying requirements. For instance, an LLC organized by 3 members in 2023, will have to file general partnership form 1065 by March 15 2024. The main purpose for forming an LLC is to limit the liability of members, just like the name suggests. The LLC cannot issue shares but instead has a membership that is proportional to the member’s contribution. There is generally no limit on the number of members. If one or more of the members manage the LLC it is called a member managed LLC. If a non-member manager is hired it is called a manager managed LLC.