By clicking “Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.
View our Privacy Policy for more information or to change your preferences.

Who can form an LLC?

The creation of a Limited Liability Company (LLC) in the United States is a process open to individuals from all over the world. To initiate this process, it is essential to comply with certain requirements that ensure the validity and legality of the LLC. Two fundamental aspects to consider are the identification document and the physical address in the state of incorporation.

Identification Document

The first key requirement is an identification document, which can be a DNI or passport from the country of residence. This inclusivity allows for the participation of non-resident individuals in the United States, facilitating the formation of an LLC on a global basis.

Physical Address

A physical address in the state of incorporation is crucial. Not only does it serve as the official location of the company, but it also acts as the point of receipt of notices and documents at both the state and federal level. This address is vital for maintaining communication with authorities and ensuring regulatory compliance.

Types of LLC: Disregarded and Partnership

The distinction between a Disregarded LLC and a Partnership LLC is crucial and depends on the number of members involved in the creation process.

Disregarded LLC

If there is only one member, the LLC will be classified as "Disregarded". This implies that, from a tax point of view, the LLC and the owner are considered a single entity. This approach simplifies tax filing and liability, offering flexibility to the sole proprietor.

LLC Partnership

When there are two or more members, the legal structure will be an LLC Partnership. This format implies a more extensive collaboration, where members share responsibilities and benefits. Decision making and management of the company are shared among the members, offering a more collaborative dynamic.

In conclusion, the creation of an LLC is an accessible process with fundamental requirements that allow global participation. The distinction between LLC Disregarded and LLC Partnership adds a crucial element, as it defines the structure and operational dynamics of the company, adapting to the specific needs of the entrepreneurs.