An LLC keeps your liability as a business owner limited so that your personal assets are protected. Learn more here.

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How are LLCs taxed?

LLCs are taxed as a pass-through tax entity. That means that the owners of the company will pay taxes on their personal income returns but the company itself doesn't get taxed. In other words, you may choose to pay yourself a salary from your LLC and then you'll pay taxes on that. If you have employees, they'll need to be accountable for Medicare, payroll taxes, and any other taxes the state you've incorporated in levies.

How long does it take to for the state to approve my filing?

Wait times vary significantly by state and, moreover, by the amount of recent filings that your state is currently processing. In other words, if there are a lot of other business owners incorporating around the same time, you'll likely wait longer. Nearly every state allows you to pay a little more to expedite or rush your filing if you're eager to get started. If you've incorporated with us, feel free to email or call your business specialist for an update.

Is my business name protected?

When you incorporate, your state will have checked your business name against existing companies in your state. Names that are not unique (or are similar enough that they might cause confusion) are rejected by the state itself. In other words, once you've incorporated, no one else in your state will be able to incorporate a business of the same name. To really protect your name, of course, you need to use it. Doing so will establish a "common law" trademark, meaning that you'll be able to prevent other businesses from using your name. You can also register for a trademark with the government, which makes proving your use of your business name much easier.

What happens if I don't submit the right paperwork?

When you incorporate with Rocket Lawyer, we'll handle the incorporation paperwork for you. If there are any issues—such as another company already using your fledgling business name—we'll contact you and work out alternatives, then follow up with the state.
As your LLC grows, you'll likely need to submit annual (or biennial) reports and pay a yearly fee. Again, these differ by state. If you neglect to file these reports or pay these fees, you could be subject to fines and other penalties. Thankfully, reporting is usually a fairly easy task, requiring just basic information about your company (where it's located, how many employees it has, etc.) and doesn't really take much time to complete.


Get started Ask a Lawyer Answer some questions. We'll take care of the rest.