LLC FORMATION

Form Your LLC

The Most Popular Business Structure

A Limited Liability Company gives you personal liability protection with pass-through taxation and flexible management, making it the right choice for over 80% of small businesses. We file your Articles of Organization with the state.

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All 50 States

Form your business in any U.S. state, regardless of where you live.

Quick Turnaround

Your documents are prepared and filed in as little as one business day.

No Hidden Fees

The price at checkout is the price you pay. Service fee + state fee, that's it.

Money-Back Guarantee

If we file your formation incorrectly, you get your money back.

WHY AN LLC

Built for Small Business

The LLC is the most popular business structure in the U.S. for a reason: it gives you corporate-level protection with partnership-level simplicity.

Personal Liability Protection

Your home, savings, and personal assets are generally protected from business debts and lawsuits.

Pass-Through Taxation

Profits flow straight to your personal tax return. If you want to save more, you can elect S-Corp taxation to lower your self-employment tax bill.

Flexible Management

Choose member-managed (all owners decide) or manager-managed (designated operators). No board required.

Minimal Formalities

No annual meetings, corporate minutes, or boards of directors. Significantly easier to maintain than a corporation.

Best for

Small to medium-sized businesses
Solo entrepreneurs and freelancers
Family-owned businesses
Real estate holding companies
UNDERSTANDING LLCs

What Is a Limited Liability Company?

A Limited Liability Company (LLC) is a business structure that combines the liability protection of a corporation with the tax flexibility of a partnership. When you form an LLC, the state recognizes it as a separate legal entity. Your personal assets (home, savings, personal bank accounts) are generally protected from business debts, lawsuits, and obligations.

Unlike corporations, LLCs have fewer ongoing formalities. There are no requirements for annual shareholder meetings, corporate minutes, or boards of directors. This makes LLCs significantly easier to maintain, especially for small business owners who want legal protection without corporate complexity.

Why does this matter? Without an LLC, you're operating as a sole proprietorship. There's no legal separation between you and your business. If your business gets sued or can't pay its debts, your personal assets are on the line.

How LLCs Are Taxed

By default, the IRS treats a single-member LLC as a "disregarded entity," and you report business income and expenses on Schedule C of your personal tax return. Multi-member LLCs are taxed as partnerships, with each member reporting their share of profits on their personal return. In both cases, the LLC itself does not pay federal income tax. This is called pass-through taxation.

LLC members pay self-employment tax (currently 15.3%) on their share of profits. If your LLC generates significant income, you can elect S-Corporation taxation by filing IRS Form 2553. This allows you to pay yourself a reasonable salary (subject to payroll taxes) and take remaining profits as distributions, which are not subject to self-employment tax, potentially saving thousands per year.

LLC Tax Election Comparison

Default (Pass-through)
  • All profits subject to 15.3% self-employment tax
  • Report on personal return (Schedule C or K-1)
  • Simpler - no payroll required
  • Best for lower-income businesses
S-Corp Election
  • Only salary subject to payroll tax (15.3%)
  • Distributions not subject to self-employment tax
  • Must run payroll for owner-employees
  • Best when profits exceed $50-60K+

Management Structure

LLCs offer two management structures. In a member-managed LLC, all owners participate in day-to-day business decisions. This is the default in most states and works well when all owners are actively involved. In a manager-managed LLC, one or more designated managers handle operations while other members are passive investors.

Your management structure is defined in your Operating Agreement, which also covers ownership percentages, profit distribution, voting rights, and what happens if a member wants to leave. CrowSmart includes a customized Operating Agreement with every LLC formation.

Key Takeaway

An LLC gives you the liability protection of a corporation, the tax flexibility of a partnership, and fewer formalities than either. For most small businesses, freelancers, and side projects, it's the best structure to start with. You can always elect S-Corp taxation or convert to a corporation later as your business grows.

YOUR DOCUMENTS

What Gets Filed

When you form an LLC through CrowSmart, we prepare and file these documents on your behalf:

Articles of Organization

Filed with the state

The formal document filed with your state's Secretary of State that officially creates your LLC. It includes your business name, registered agent, management structure, and purpose. Once approved, your LLC legally exists as a separate entity.

Business NameRegistered AgentManagement TypePurpose

Operating Agreement

Internal governance

An internal governance document that defines how your LLC operates: ownership percentages, profit distribution, member responsibilities, voting procedures, and dissolution terms. While not filed with the state, it's essential for protecting your liability shield and preventing disputes.

Ownership %Profit DistributionVoting RightsMember Exit

LLC Formation Pricing

$199+ state fees

No hidden fees. Money-back guarantee.

Form Your LLC
NATIONWIDE COVERAGE

Your Registered Agent in All 50 States

Select your state for specific requirements and pricing

ALAlabamaAKAlaskaAZArizonaARArkansasCACaliforniaCOColoradoCTConnecticutDEDelawareFLFloridaGAGeorgiaHIHawaiiIDIdahoILIllinoisINIndianaIAIowaKSKansasKYKentuckyLALouisianaMEMaineMDMarylandMAMassachusettsMIMichiganMNMinnesotaMSMississippiMOMissouriALAlabamaAKAlaskaAZArizonaARArkansasCACaliforniaCOColoradoCTConnecticutDEDelawareFLFloridaGAGeorgiaHIHawaiiIDIdahoILIllinoisINIndianaIAIowaKSKansasKYKentuckyLALouisianaMEMaineMDMarylandMAMassachusettsMIMichiganMNMinnesotaMSMississippiMOMissouri
MTMontanaNENebraskaNVNevadaNHNew HampshireNJNew JerseyNMNew MexicoNYNew YorkNCNorth CarolinaNDNorth DakotaOHOhioOKOklahomaOROregonPAPennsylvaniaRIRhode IslandSCSouth CarolinaSDSouth DakotaTNTennesseeTXTexasUTUtahVTVermontVAVirginiaWAWashingtonWVWest VirginiaWIWisconsinWYWyomingMTMontanaNENebraskaNVNevadaNHNew HampshireNJNew JerseyNMNew MexicoNYNew YorkNCNorth CarolinaNDNorth DakotaOHOhioOKOklahomaOROregonPAPennsylvaniaRIRhode IslandSCSouth CarolinaSDSouth DakotaTNTennesseeTXTexasUTUtahVTVermontVAVirginiaWAWashingtonWVWest VirginiaWIWisconsinWYWyoming
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FAQs

Frequently Asked Questions

Got questions? We've got answers. Find everything you need to know about our Business Formation service.

While not always legally required, an Operating Agreement is strongly recommended for every LLC. It defines ownership structure, member responsibilities, profit distribution, and decision-making procedures. Without one, your LLC is governed by default state rules, which may not align with your intentions. Banks often require an Operating Agreement to open a business account.

Ready when you are

Ready to Form Your LLC?

Filed in as little as one business day, all 50 states. Starting at $199 + state fees.

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