An LLC is a state created legal corporate entity.   It is a legal person.   An LLC is an agreement, even if it only involves one person, stipulating certain principles, bylaws, and regulations for a new corporate entity with a desired name, all laid out at the time of filing. Once filed, it must be advertised in certain publications for a certain amount of time, and then you are in business.

The LLC is in effect a new person. With no body yes, but with virtually all the rights of a normal human being. As such, they protect the stake holders from legal and financial difficulty by assuming full responsibility for all decisions undertaken by the LLC, while profits are, if the LLC is structured properly, funelled to the owners.

The law pertaining to LLC's varies from state to state, but the principle is static. An individual or group of individuals, choose a name for their agreed upon system of behaviors, operations and financial interaction to be undertaken within and without by the formed legal entity, and then file this agreement with the state.

05 - Since you are an employer, here are the licenses and tax ids you are legally required to obtain before starting retail operations:

1. A business tax registration license 

2. A federal tax id number if you are a partnership or you want to use it instead of you social security number to open a bank account.

3. a federal tax id employer number as well as

4. a state ein employer number and

5. A sellers permit.

You can obtain all these permits and more online at www.businesnameusa.com

Simply fill out our online questionaire, complete our business information form as completely as possible, leaving empty only those field to which you do not posess the answer, and the complete the payment form and we will begin processing your order imediately.

www.businessnameusa.com

P.O. Box 14927

Long Beach, CA. 90853

310-455-6675

In effect, the LLC is a distraction. It is sued, taxed, charged by the police, and so on. And on the other hand, it sues and loses money. But you, the owner, you at worst lose money only proportional to the loss of the value of your stake, and at best gain in profits and the increase in value of your stake.

However, to run an LLC, you need many things. First is a federal ID number to act as a social security number for tax filings on a federal level. Without it, your new corporate person doesn't really exist as far as the IRS is concerned, and that is bad for everyone.

Next, if you intend to hire anyone soon, you must obtain a Federal Employee Identification Number. This will set up your IRS witholding account and ensure that your LLC does not run into to trouble with the IRS at any point for unintentionally failing to withold wages when it should have.

You also need your State tax ID to register your LLC as a person with your states revenue service, and a Sellers Permit to take advantage of wholesale prices from suppliers, as well as to ensure that you are charging the proper amount of sales tax, to avoid any fines.

Finally, you must obtain a local business license for any location you open a branch for your business, not only to verify that your business is legal on the ground, but to make sure that the city or county where you are operating will keep you current on all possible taxes and inspections.

All the permits listed above come to the basement price of $649.94, well below that of the competition.