A limited liability company (LLC) is a business structure allowed by state laws. It offers several benefits to business owners, such as the protection of personal assets and flexible taxation. However, you must obtain a business license to operate your LLC legally. An LLC business license proves that your company is registered and recognized by your state government. In this post, we will discuss further what a business license is, how to get one, and what additional licenses and permits you can get in California and Texas.<\/p>\n\n\n\n
An LLC is a legal business structure that offers members personal liability protection. It is a business structure, not a license to engage in a regulated activity. An LLC license is an unofficial term used to describe the paperwork creating a limited liability company. No actual license is required to form an LLC; an LLC doesn\u2019t give you a business license. Instead, an \u201cLLC license\u201d proves that you run a company registered as an LLC with your state. The legal document that establishes an LLC is called the Articles of Organization. Once this form is filed with your state and any other required documents and filing fees are paid, your LLC is an active business. You can use those articles of organization as a de facto LLC license.<\/p>\n\n\n\n
A business license is a permit issued by the government that allows you to engage in certain business activities. It is required to open a business and allows your business to operate in your state or locality. A business license may also refer to specialized licenses and permits that allow your business to perform certain services or operate in certain locations.<\/p>\n\n\n\n
As the owner of an LLC, if you don\u2019t have the licenses and permits your state requires, you could be forced to close down your business. Also, running a business without proper licensing could jeopardize your personal liability protection. At a minimum, you\u2019ll have to pay fines and penalties for not obtaining the proper authorizations. <\/p>\n\n\n\n
Obtaining an LLC business is a beneficial move for a company, and you can get one by considering the following steps: <\/p>\n\n\n\n
You may need to register with any state where you conduct business activities. This is because most states require registration with the Secretary of State’s office, a business bureau, or a business agency.<\/p>\n\n\n\n
If your LLC conducts business activities in multiple states, you might need to file for a foreign qualification in other states where your business is active. To qualify as a foreigner, file a Certificate of Authority with the state. Many states also require a Certificate of Good Standing from your state of formation. Each state charges a filing fee, but the amount varies by state and business structure <\/p>\n\n\n\n
You might need to file for licenses and permits from the county or city. Some counties and cities also require registering your trade name if you use one. Local governments determine registration, licensing, and permitting requirements, so visit local government websites to learn what you need to do.<\/p>\n\n\n\n
To create your LLC, you’ll need to file articles of organization with your state. The information required varies from state to state, but you typically only need to provide the name and address of your LLC and the names of its members. Once you’ve completed the form, fill it out with your state and pay the filing fee.<\/p>\n\n\n\n
You can typically get a business license online by applying to your business’s correct licensing or regulatory agency. Business licensing requirements generally depend on your business’s activity and location (i.e., zoning requirements).<\/p>\n\n\n\n
After registering your LLC, make sure to keep it compliant and in active status on the state’s website. This may include filing biennial reports, paying taxes, and maintaining a registered agent for your business.<\/p>\n\n\n\n
Depending on your business activities, you might need additional permits or licenses, such as health department permits, zoning permits, home occupation permits, and professional licenses. Some states require a seller’s permit to conduct sales.<\/p>\n\n\n\n
California has no general state-level business license, but your LLC may need other licenses and permits depending on your industry and location. Examples of business licenses and permits for California LLCs include the following:<\/p>\n\n\n\n
Registering your LLC with the state of Texas officially forms the business and provides the state with basic information about your company. To get an LLC business license in Texas, consider the following: <\/p>\n\n\n\n
You can also consider getting additional licenses and permits. The Texas Economic Development Office offers a comprehensive Texas Business Licenses and Permits Guide PDF, which includes all licenses in Texas. To determine which licenses and permits apply to your LLC, you can use the search tools provided by the Texas Economic Development Business Permit Office, contact your local municipality, or hire a company to assist you. Here are some examples of licenses and permits a Texas LLC might need:<\/p>\n\n\n\n
You may need a business license in the USA depending on the type of business you are operating, its location, and the specific industry it falls under. Most businesses need one or more licenses to operate legally, whether at the local, state, or federal level.<\/p>\n\n\n\n
To determine the type of license you need, consider the following factors:<\/p>\n\n\n\n
Yes, you can start an LLC in the United States even if you are not a US citizen. Non-citizens can form an LLC if they meet the Internal Revenue Service’s (IRS) guidelines. Green card holders, also known as permanent residents, are protected by all laws of the United States and can start a business following the laws of their state. However, forming an LLC in the US does not grant you any visas to work in the US. If you plan to manage the LLC from within the US, you may need a valid work visa.<\/p>\n\n\n\n
To start an LLC in the US, you need to follow these steps:<\/p>\n\n\n\n
The cost to open an LLC in the USA varies depending on the state, the formation method, and additional services. Here’s an estimate of the costs:<\/p>\n\n\n\n
In most cases, LLC registration can be completed for between $200 and $800, with ongoing annual maintenance costs typically ranging between $300 and $500.<\/p>\n\n\n\n
All 50 states in the United States allow the formation of limited liability companies (LLCs). However, not all states permit the formation of series LLCs, a popular business structure for investors and business people due to their versatility and broad benefits.<\/p>\n\n\n\n
The following states currently permit the formation of series LLCs: Delaware, Texas, Tennessee, Utah, Nevada, Illinois, Oklahoma, and Iowa. California is the only state that does not allow the formation of an in-state series LLC.<\/p>\n\n\n\n
If you live in a state that does not permit series LLCs, you may still form a series LLC by registering your LLC in one of the states that permits them and then registering it as a foreign entity in your home state. This process is legal and allows you to take advantage of the benefits of series LLCs.<\/p>\n\n\n\n
The best state for a single-member LLC depends on several factors, including the complexity of the registration process, state-specific requirements, and tax implications. Delaware is known for its simplified filing procedures and business-friendly environment. It is considered one of the best states to form a single-member LLC. However, it’s crucial to evaluate your business situation and consult legal counsel before deciding on a state.<\/p>\n\n\n\n
Yes, limited liability companies (LLCs) are legal in every state in the US, but each state has its own statutes that govern and regulate them. Each state may have different regulations, so you must check with your state if you want to start an LLC. Only a few types of businesses, such as banks and insurance companies, cannot generally form LLCs.<\/p>\n\n\n\n
When considering the best state to form an anonymous LLC, New Mexico, Delaware, Nevada, and Wyoming are the most popular choices due to their strong privacy laws and favorable business environments. However, the best state for your anonymous LLC depends on your company’s needs and where you’ll transact business.<\/p>\n\n\n\n