The next step after successfully reserving a business name is to register it with the relevant state agency. State-specific regulations and procedures govern registration, but they typically involve filing an application and paying a fee. The business name is formally recognized and protected in the state once the registration is approved.
Depending on the state and the volume of work at the registration office, it may take longer or shorter to register a business name. Online registration can be finished quickly and within a few days in some areas, while it may take weeks or even months in others. It is crucial to confirm the deadlines and specifications with the state’s registration authority.
After a business name is registered, a frequent query is if taxes must be filed even if an LLC didn’t make any money. The answer is yes, as the company is still regarded as a legal organization that is required to file taxes even though it did not make any money. However, there are several exclusions and deductions that can be claimed for enterprises that don’t generate any revenue, thus it is advised to get advice from a tax expert.
An LLC is typically handled as a pass-through entity for tax purposes, which means that profits and losses are reported on the owner’s personal tax return. Although the LLC does not pay federal income tax, it may still be charged state, local, and other business taxes and fees.
The owner of an LLC is referred to as a member in the final instance. An LLC is owned by its members, who can be either individuals, other businesses, or even foreign entities, as opposed to a corporation, whose ownership is represented by shares of stock. The members have the authority to oversee the LLC or choose a manager to oversee daily activities. Finally, once a business name has been successfully reserved, it must be registered with the appropriate state agency. Each state has its own requirements for registration, and even if an LLC didn’t make any money, taxes still need to be submitted. For taxation reasons, an LLC is typically regarded as a pass-through entity, and its owner is referred to as a member.