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On this page of the ExportUSA website, we discuss how an LLC works and how to manage it from a practical and operational perspective. This is not a detailed guide on every point, as that's not the goal. The aim is to provide a quick overview of how to plan the opening, then open, and finally manage an LLC in a way that lets you know a certain obligation needs to be met, so you can delve deeper into the topic if necessary.
LLCs are regulated at the state level, and each state has its own specific regulations regarding LLC operations. While the rules are very similar, it's always good to be cautious.
The state agency that manages LLCs is the Department of State and this is true for all U.S. states.
In the majority of U.S. states, LLCs also need to appoint a Registered Agent with offices in the state.
It is advisable to hold a meeting of the LLC members and/or managers at least once a year [regular meetings] and whenever it's necessary to discuss and approve specific decisions [extraordinary meetings]
To open an LLC, you need to submit an application to the Department of State in the U.S. state where you want to establish the LLC. Usually, the application is called Articles of Organization. Below, you can find links to the state departments of all U.S. states to check the availability of LLC names
Each U.S. state, therefore, has specific standards regarding the opening, management, and compliance of LLCs formed within its borders, and sometimes the differences between one state and another are substantial. Let's take an example of state procedures and regulations to understand how typical these standards are to the state and how they can vary from one state to another:
Annual Report for LLCs in Alabama
The state of Alabama requires the submission of an annual report as part of the mandatory filing called Business Privilege Tax (BPT) within 3 and a half months from the start of the fiscal year.
BPT State Payment Requirement
Most businesses in Alabama, including LLCs, must pay the BPT. The BPT is a form of "franchise tax" paid to the Alabama Department of Revenue (ALDOR). The BPT is calculated based on the LLC's net taxable assets and includes a mandatory minimum payment. As of 2023, the minimum payment is set at $50.
Issuance of the Certificate of Compliance
The Certificate of Compliance is typical of the state of Alabama. It is issued if the ALDOR [Alabama Department of Revenue] can verify that an LLC has submitted all mandatory filings and paid the taxes due within the allotted time.
Once the LLC is opened, you need to request the tax number [EIN - Employer Identification Number] from the American Tax Agency [IRS]
For proper management/operation of the LLC, it's strongly recommended to prepare an OperatingAgreement [roughly equivalent to the bylaws of Italian joint-stock companies]
Virtually every state requires the submission of an annual informational declaration on the structure of LLCs. Each state has its own rules on the deadline for submitting this declaration [which is only for informational purposes and does not require tax payment]
LLCs must file income tax returns at the state and federal levels. The income tax return must be filed only if there is taxable income. LLCs are pass-through entities, so the income tax return must be filed by the individual members based on their share of the LLC's profits. Regarding LLC taxation: The tax burden on the LLC members is calculated using the rates applied to personal income taxes.
April 15 for single-member LLCs with only one member; March 15 for multi-member LLCs. Contact ExportUSA well in advance to file your LLC's income tax return.
Below, we present the updated table of rates for federal level taxation of personal income. These are the rates to use when calculating and paying taxes in America on profits received from an LLC. These are the rates to use when preparing, in 2025, the income tax return for taxable income in the United States for the 2024 tax period
| Rates LLC |
Individual Taxpayers |
Joint Income Filing |
|---|---|---|
| 10% | $0 to $11,925 | $0 to $23,850 |
| 12% | $11,925 to $48,475 | $23,850 to $96,950 |
| 22% | $48,475 to $103,350 | $96,950 to $206,700 |
| 24% | $103,350 to $197,300 | $206,700 to $394,600 |
| 32% | $197,300 to $250,525 | $394,600 to $501,050 |
| 35% | $250,525 to $626,350 | $501,050 to $751,600 |
| 37% | over $626,350 | over $751,600 |
This is another informational declaration that doesn't involve tax payment and is done at the federal level with the Department of Treasury. Starting January 1, 2025, the declaration must be made within 30 days of opening the LLC
Keep in mind the points mentioned on this page of the ExportUSA site and you'll ensure the smooth operation of your LLC