1.1 Requirements
1. What is needed to form an LLC?
- Determine which state you want to form the LLC in.
- Provide us with the desired name for your LLC (give us 3 name options to validate which is available in the state).
- Name of the member and general information (ID number, physical address, mobile number, email address, and whether they have a U.S. Social Security Number).
- The member must be of legal age (18 years or older).
- The member of an LLC can be a natural person or a legal entity.
- If it’s a legal entity, incorporation documents are required.
- If the member(s) are natural persons, a valid ID of the member(s) is required. If they are foreigners, a valid passport is needed. If they are U.S. residents and have a Social Security Number (SSN), a valid driver’s license is acceptable.
- Contract and pay for the chosen plan.
1.2 Plans and Services
2. What plans do you offer to form an LLC?
Basic Plan starting at $299.00
- Forming the LLC in WY, NM, or FL (forming an LLC in other states may cost more).
- Obtain EIN for the LLC.
- Payment of the first year of registered agent service.
- Mailing address for the LLC for the first year.
Premium Plan starting at $399.00
- Includes everything in the Basic Plan + application for a bank account in the name of the LLC with a digital bank.
Ultimate Plan $899.00
- Includes everything in the Premium Plan + a Lease Agreement designating a physical space located in a real building in the U.S. The contract is signed in the name of the LLC and allows you to demonstrate that the LLC has an exclusive address in the U.S.
3. How can I pay you?
On our website, you will find payment links for all the services we offer. Once the payment is made, you will be directed to the corresponding form that you need to fill out.
1.3 Process and Timeline
4. How long does it take to form an LLC?
It depends on the state where it is being formed. For example, in Wyoming, it may take 3 to 5 business days, in New Mexico a week, and in Florida, approximately 3 weeks.
1.4 State Selection
5. Which is the best state to form my LLC?
First, you need to be clear about the business activity your LLC will engage in.
If, for example, it is selling products on AMAZON FBA, EBAY, Shopify, or another U.S. e-commerce platform, WY or NM is recommended.
6. Why WY or NM?
Both states have data protection laws, meaning the personal information of the future owner is not public. Additionally, these states do not charge State Taxes or Franchise Fees like others do, nor do they require publications in newspapers or additional reports as some other states do.
1.5 LLC Structure and Membership
7. Can I form an LLC if I am a U.S. resident?
Yes, but you should know that there is no tax exemption from the IRS for you or your LLC. If any member of the LLC resides in the U.S., it is recommended to form the LLC in the state where they live. If your business will conduct any physical activities in another state, you are also required to register the LLC in the state where the activity will take place, in addition to the state where the member resides.
8. How many members can an LLC have?
An LLC with a single member is considered a Single Member LLC. An LLC with two or more members is considered a Multi-Member LLC.
You should determine the number of members your LLC will have in advance, as forming an LLC with a single member and then adding more members later involves additional paperwork and expenses, similar to reducing the number of members.
9. Can another member be added to an LLC that was initially created as a Single Member LLC?
Yes, there are two ways to do this:
- Add another person(s) in the Operating Agreement, which is the document that establishes the ownership of the LLC. This involves issuing a new Operating Agreement and new Membership Certificates. The cost for this process is $75.00 and can take 3 business days.
- Request an amendment from the state where the LLC was formed to change its structure from Single Member to Multi-Member. This process involves canceling the existing EIN and applying for a new EIN from the IRS. If the LLC has an open bank account, the account must be closed and a new one opened once the new EIN is issued by the IRS. The cost for this process is $300.00 and can take up to 3 months, depending on the state where the LLC was formed.
1.6 EIN (Employer Identification Number)
10. What is an EIN, and why does my LLC need one?
An EIN is the tax identification number that every LLC must have in order to operate legally and conduct business in the U.S.
11. Who issues the EIN for my LLC?
The IRS, which is the Internal Revenue Service of the United States of America.
12. How long does it take to obtain an EIN?
The time depends on the method used to apply for it, as there are different options:
- Standard Method: Approximately up to 3 months and is included when you purchase one of our plans.
- EIN Express Method: 3 weeks, and an additional $150.00 service fee is required.
- If an LLC member has a valid Social Security Number issued by the United States: Approximately 3 days.
13. What is the EIN used for?
- To conduct any business with third parties in the U.S., including opening a bank account for your LLC.
- To file the annual Tax Return for your LLC.
14. Why do I need a new EIN if I want to switch from single-member to multi-member and vice versa?
Because it changes the structure originally declared to the IRS, which affects the tax treatment and the filing date for the Income Tax Return.
15. What happens to the old EIN?
You need to request its cancellation from the IRS.
1.7 ITIN (Individual Taxpayer Identification Number)
16. What is an ITIN, and who can apply for it?
An ITIN is an Individual Taxpayer Identification Number issued by the IRS, which can take 6-10 months to receive. A member of an LLC can apply for it. The ITIN facilitates tax compliance for the member of an LLC and can also provide access to banking services and credit in the U.S. for their LLC.
17. Why is the ITIN processing taking so long?
The processing time is entirely dependent on the IRS, and there is no system available to track the status of the application. Once submitted, the IRS will only contact us to request additional documentation or to inform us that the ITIN has been issued.