Introduction
The Limited Liability Company (LLC) structure is a popular and beneficial business structure for many business owners. An LLC is usually created under state law and offers personal liability protection for owners, and has the potential to save considerable money in taxes. Not sure whether to form an LLC in California or American Samoa? Read on to find out more.
LLC Requirements in California
One of the first steps in forming an LLC in California is to make sure that the name you want for your business is available. There cannot be another LLC in the state with the same name as the one you want. Also, the name of your LLC should not mislead the public or include any words that might imply that the LLC is a government agency.
- Minimum number: LLCs in California must have at least one or more members or managers.
- Age requirements: In California, there are no age requirements for members.
- Residence requirements: California also doesn’t have a provision that specifies where members or managers must live.
To register your LLC in California, you will have to file a California certificate of formation. This document is important and outlines details about your Cal LLC, like the business address and official name.
Also, every California LLC is required to file a Statement of Information, Form LLC-12, within ninety days after filing the articles of the organization. You have to file it with the California Secretary of State. And the California Franchise Tax Board imposes an annual tax on all LLCs operating in California.
Benefits of an LLC in California
California can be an excellent place to start an LLC. This is because the Golden State has a lot to offer to entrepreneurs and potential business owners, with millions of residents as well as a range of industries. Limited liability companies in the state are relatively simple to form and maintain with little expense or paperwork.
Why an American Samoa LLC
However, forming and running an LLC in American Samoa offers several advantages, such as tax benefits, which will greatly benefit business owners. One of the main benefits of forming an American Samoa LLC is personal liability protection and taxation. Keep in mind that the personal assets of members will be safe since the financial burdens won’t carry over to the LLC members.
Setting up an LLC in American Samoa is a fairly straightforward and quick process, one that doesn’t require a lot of funds. Furthermore, you can choose a certain tax status that appeals to you and not worry about the risk of double taxation.
