A blind limited liability company (LLC) is a type of corporate entity where the names of the owners and members are kept secret. To put it another way, the owner’s identity is kept private and this information is not disclosed in public records. Because the identity of the owner or members is kept a secret from the public, this kind of LLC is often referred to as a “sealed” LLC.
Yes, a single person may hold an LLC. It’s referred to as a Single-Member LLC. A Single-Member LLC’s owner enjoys the same level of liability protection as a Multi-Member LLC. This means that any business debts or legal actions won’t affect the owner’s personal assets. Additionally, a Single-Member LLC is treated as a “disregarded entity” for taxation purposes, which means the owner must disclose the business’s earnings and outlays on their own tax return.
Self-employment tax, which includes Social Security and Medicare taxes, is due by sole proprietors. Currently, the self-employment tax rate is 15.3% of net income. All net income in 2020 is subject to Medicare tax, but only the first $137,700 is liable to Social Security tax. Additionally, sole owners need to budget for federal, state, and municipal income taxes. Depending on one’s salary and tax bracket, different people should set aside different amounts.
Yes, independent contractors in New Mexico must acquire a business license. Depending on the area and industry, different license types are needed. It is advised that independent contractors inquire about any necessary licenses and permits with their local or state governments. Does the state require sole owners to register?
Most of the time, sole proprietors are exempt from state registration requirements. However, the owner might need to register a “doing business as” (DBA) name with the state if the company uses a name that differs from the owner’s legal name. Additionally, the proprietor might need to sign up for a sales tax permit with the state if the company offers items or services that are subject to sales tax.
In conclusion, a Blind LLC is a legal structure that grants its owners or members secrecy. A single individual may own an LLC, and they are entitled to the same liability protection as a multi-member LLC. The self-employment tax, as well as federal, state, and municipal income taxes, should be budgeted for by sole owners. In New Mexico, single proprietors may need to register a DBA name and a sales tax permit with the state, and independent contractors must get a business license.