Lesson 2 of 15
Who should consider an LLC?
The structure that fits depends on liability exposure, ownership plans and how you intend to raise money.
An LLC usually fits when
- You have customers, contracts, staff, premises or physical products, so real liability exists
- You own the business alone or with a small group of partners
- You want profit taxed on personal returns without corporate formalities
- You hold rental or investment property and want each holding separated
- You are a non-US founder selling online or providing services to US customers
Another structure may fit better when
- You plan to raise venture capital or issue stock options: investors usually expect a C corporation
- You are running a charitable organisation: a nonprofit corporation is the usual route
- You are testing an idea with no customers, contracts or risk yet, where a sole proprietorship may be enough for now
Cost against benefit
An LLC costs money to create and to keep alive every year. If the business earns nothing and carries no risk, that cost may not be worth it yet. Once you sign contracts, take payments or hire anyone, the calculation usually flips.
Frequently asked questions
Can I convert later?
Yes. LLCs can convert to corporations, and in many states corporations can convert to LLCs, though the tax consequences need advice first.
Can a non-US resident own a US LLC?
Yes. There is no citizenship or residency requirement for LLC ownership in any state.
Prefer to have someone handle the filing?
You can file directly with the state using the steps above. If you would rather have Gullia Filing prepare and file your formation documents, run the name check and act as your registered agent, we handle the process end to end.