Question 1

What is an LLC?

Accepted Answer

An LLC (Limited Liability Company) is a U.S. business structure that separates personal assets from business liabilities while offering flexible tax treatment. Most small businesses choose an LLC for simplicity and liability protection.

Question 2

Which state should I form in?

Accepted Answer

Most businesses form in the state where they operate. Forming elsewhere (e.g., Delaware, Wyoming) can add foreign qualification fees. FormFlow supports all 50 states with transparent state filing fees shown before checkout.

Question 3

How long does formation take?

Accepted Answer

State processing typically ranges from 1–15+ business days depending on the state and whether expedited filing is available. FormFlow tracks status in your dashboard and sends email updates at each stage.

Question 4

LLC name requirements

Accepted Answer

Your LLC name must be distinguishable from existing entities, include 'LLC' or 'Limited Liability Company' (state rules vary), and avoid restricted words without approval. FormFlow guides name choices and checks availability during the application.

Question 5

Articles of Organization

Accepted Answer

Articles of Organization (Certificate of Formation in some states) are the official document filed with the Secretary of State to create your LLC. FormFlow prepares and submits these based on your questionnaire answers.

Question 6

Operating Agreement

Accepted Answer

An operating agreement defines ownership, management, profit splits, and member procedures. Not required in every state but strongly recommended — especially for multi-member LLCs. FormFlow Standard and Premium packages include operating agreement support.

Question 7

Single-member LLC

Accepted Answer

A single-member LLC has one owner. It's taxed as a disregarded entity by default (Schedule C on personal return) unless you elect corporate taxation. You can still get liability protection and open business bank accounts with an EIN.

Question 8

Multi-member LLC

Accepted Answer

Multi-member LLCs default to partnership taxation (Form 1065 + K-1s) unless you elect S-corp or C-corp. An operating agreement is essential to define roles, capital contributions, and dispute resolution.

Question 9

Do I need an EIN?

Accepted Answer

You need an EIN if you have employees, multiple members, want a business bank account (most banks require one), or elect certain tax classifications. Single-member LLCs without employees may use the owner's SSN but an EIN is still recommended.

Question 10

How to get an EIN

Accepted Answer

The IRS issues EINs at no government fee. FormFlow's $79 EIN service covers preparation, Form SS-4 guidance, and support — not an IRS charge. We help you apply correctly so you can open bank accounts and hire employees faster.

Question 11

What is a registered agent?

Accepted Answer

A registered agent receives legal and state documents on your LLC's behalf. Every state requires one with a physical in-state address available during business hours. FormFlow offers registered agent service at $299/year.

Question 12

Can I be my own registered agent?

Accepted Answer

In most states yes, if you have a physical address in the state and are available during business hours. A professional agent protects privacy and ensures you never miss legal notices. FormFlow RA is $299/year.

Question 13

How are LLCs taxed by default?

Accepted Answer

Single-member LLCs: disregarded entity (Schedule C). Multi-member LLCs: partnership (Form 1065 + K-1). LLCs can elect S-corp (Form 2553) or C-corp taxation. FormFlow provides information only — not tax advice. Consult a CPA for your situation.

Question 14

Schedule C

Accepted Answer

Schedule C (Profit or Loss from Business) reports sole proprietorship/disregarded LLC income on your personal 1040. Due with your annual tax return (typically April 15, extensions available).

Question 15

Form 1065

Accepted Answer

Partnerships and multi-member LLCs file Form 1065 (informational return) and issue K-1s to members. Due March 15 (or extension). Members report K-1 income on personal returns.

Question 16

K-1

Accepted Answer

Schedule K-1 reports each member's share of partnership/LLC income, deductions, and credits. You receive K-1s from the LLC and include them on your personal tax return.

Question 17

S-Corp election

Accepted Answer

LLCs can elect S-corp status via Form 2553 (deadline: 75 days after formation or start of tax year). Potential benefit: reduce self-employment tax on distributions vs. salary. Requires reasonable salary, payroll, and additional compliance. Consult a tax professional.

Question 18

Self-employment tax

Accepted Answer

Self-employment tax (Social Security + Medicare) applies to net LLC earnings for default tax classifications. Rate is approximately 15.3% on net earnings up to the Social Security wage base, plus 2.9% Medicare on excess. Estimated quarterly payments may be required.

Question 19

Estimated quarterly taxes

Accepted Answer

If you expect to owe $1,000+ in tax, the IRS generally requires quarterly estimated payments (April 15, June 15, Sept 15, Jan 15). Underpayment penalties may apply. Use IRS Form 1040-ES. State estimated taxes may also apply.

Question 20

Sales tax

Accepted Answer

Sales tax applies when you sell taxable goods/services in states where you have nexus (physical or economic presence). Rules vary by state and product type. Register with state revenue departments where required.

Question 21

Payroll taxes

Accepted Answer

If you have W-2 employees, you must withhold income tax, pay FICA, and file payroll returns (Form 941, W-2, W-3). Consider a payroll provider. FormFlow does not provide payroll services directly.

Question 22

Business deductions

Accepted Answer

Ordinary and necessary business expenses are generally deductible: office supplies, software, marketing, professional services, insurance, and more. Home office, vehicle, and meals have specific rules. Keep receipts and records.

Question 23

Business expenses

Accepted Answer

Track all business expenses with receipts. Common categories: advertising, bank fees, contract labor, insurance, legal/professional, office, rent, utilities, travel, and equipment. FormFlow bookkeeping ($99/mo) helps categorize transactions.

Question 24

Annual reports

Accepted Answer

Most states require annual or biennial reports to keep your LLC in good standing. Deadlines and fees vary. Missing deadlines can lead to penalties or administrative dissolution. Check your state's Secretary of State website.

Question 25

Franchise tax

Accepted Answer

Some states (CA, DE, TX, etc.) impose franchise or privilege taxes on LLCs regardless of income. Amounts and thresholds vary. FormFlow state guides include links to official sources.

Question 26

Closing an LLC

Accepted Answer

To close an LLC: settle debts, file final tax returns, cancel registrations/licenses, and file articles of dissolution with the state. FormFlow LLC Dissolution is $149.99 one-time plus your state's dissolution filing fee. Learn more at /services/llc-dissolution or say "I need to dissolve my LLC" to walk through it.

Question 27

LLC Dissolution service

Accepted Answer

FormFlow LLC Dissolution is $149.99 one-time plus the state's dissolution filing fee. Total to dissolve an LLC = $149.99 FormFlow service + state fee. Flow: Learn More → Add to Cart → Stripe Checkout → confirmation → customer portal → required information and secure document upload → filing through completion. Add to cart: /services/checkout?service=llc_dissolution

Question 28

Add to cart and checkout

Accepted Answer

Paid add-ons use Add to cart, then FormFlow checkout, then Stripe payment. Bookkeeping: /services/checkout?service=bookkeeping_monthly. Tax filing: /services/checkout?service=tax_filing. Premium: /services/checkout?service=premium_business_management. Dissolution: /services/checkout?service=llc_dissolution. LLC formation checkout is at /start then /checkout.

Question 29

Customer portal and onboarding

Accepted Answer

After payment, sign in at /dashboard. You'll see order status, subscriptions, next steps, documents, and service cases. Dissolution customers complete required information and uploads at /dashboard under Open case. New customers can create an account from the payment success page.

Question 30

Secure document upload

Accepted Answer

Upload supporting files from your signed-in customer portal (order vault for LLC formation; Open case for dissolution and other service orders). Files are stored on FormFlow's order storage and visible to you and the operations team. 10MB max per file.

Question 31

Bookkeeping

Accepted Answer

FormFlow bookkeeping is $99/month (or $79/month billed annually = $948/year). Includes chart of accounts setup, monthly transaction categorization, and financial snapshots. Add to cart: /services/checkout?service=bookkeeping_monthly

Question 32

Tax filing service

Accepted Answer

FormFlow business tax filing is $499/year — guidance and document checklist for LLC tax obligations. We are not a CPA firm and do not provide legal or tax advice. Add to cart: /services/checkout?service=tax_filing

Question 33

Premium Business Management

Accepted Answer

Premium Business Management is $700/month — full-service support including compliance tracking, document management, and dedicated account coordination. Add to cart: /services/checkout?service=premium_business_management

Question 34

Business banking

Accepted Answer

Most banks require an EIN, Articles of Organization, and operating agreement to open a business account. Keep personal and business finances separate from day one.

Question 35

Business licenses

Accepted Answer

LLC formation does not automatically include local business licenses, professional licenses, or sales tax permits. Check city, county, and state requirements for your industry.

Question 36

W-2 vs 1099

Accepted Answer

W-2 employees: you withhold taxes and pay employer payroll taxes. 1099 contractors: they handle their own taxes; you may issue 1099-NEC if you pay $600+. Misclassification carries IRS penalties.

Question 37

Mileage deduction

Accepted Answer

Business mileage may be deductible using the IRS standard mileage rate or actual expenses. Keep a contemporaneous log with date, destination, purpose, and miles. Rates change annually — verify current IRS rate.

Question 38

FormFlow pricing

Accepted Answer

Authoritative FormFlow prices: LLC Formation $149, EIN $79, Registered Agent $299/year, Bookkeeping $99/month ($79/mo annual = $948/yr), Tax Filing $499/year, Premium Business Management $700/month, LLC Dissolution $149.99 one-time plus state dissolution filing fees. State filing fees are separate and shown before checkout.

Question 39

Partnership vs LLC

Accepted Answer

A general partnership offers no liability shield. An LLC provides liability protection with similar pass-through taxation options. Most small businesses prefer LLC over informal partnerships for asset protection.

Question 40

C-Corp election

Accepted Answer

LLCs can elect C-corp taxation (Form 8832). C-corps pay entity-level tax and may face double taxation on dividends. Sometimes used for venture funding or specific tax planning — consult a CPA.

Question 41

Form 2553 S-corp election

Accepted Answer

Form 2553 elects S-corp status for an LLC or corporation. Generally due within 75 days of formation or the start of the tax year. Late election relief may be available. Requires ongoing payroll and reasonable salary.

Question 42

1099-NEC

Accepted Answer

Issue Form 1099-NEC to contractors paid $600+ in a calendar year for services. Due to recipients by Jan 31; filed with IRS. Keep W-9s on file. Employee vs contractor classification matters — misclassification has penalties.

Question 43

Beneficial ownership (BOI)

Accepted Answer

Federal beneficial ownership reporting rules have changed over time. Check FinCEN.gov for current BOI filing requirements, deadlines, and exemptions. FormFlow does not file BOI reports — verify current federal rules with official sources.

Question 44

Foreign qualification

Accepted Answer

If you form an LLC in one state but operate in another, you may need to foreign qualify (register) in each state where you do business. Triggers vary by state — physical presence, employees, or revenue thresholds.

Question 45

DBA / trade name

Accepted Answer

A DBA (doing business as) lets your LLC operate under a brand name different from the legal LLC name. Filed at county or state level depending on jurisdiction. Does not create a separate legal entity.

Question 46

Business setup steps

Accepted Answer

Typical order: choose structure (LLC), pick state, reserve/check name, file Articles, get EIN, open bank account, obtain licenses/permits, set up bookkeeping, and track compliance deadlines. FormFlow handles formation, EIN, RA, bookkeeping, and tax filing services.

Question 47

Annual compliance checklist

Accepted Answer

Ongoing LLC compliance often includes: state annual/biennial reports, registered agent maintenance, federal/state tax filings, estimated tax payments, business licenses renewals, and updated operating agreements when ownership changes.

Question 48

PLLC for licensed professionals

Accepted Answer

Licensed professionals (lawyers, doctors, accountants in some states) may need a PLLC or professional corporation instead of a standard LLC. State rules vary — verify with your licensing board.

Question 49

Home office deduction

Accepted Answer

Home office deduction requires exclusive and regular business use of a portion of your home. Simplified method or actual expense method may apply. Rules differ for employees vs self-employed. Keep records.

Question 50

Business tax deadlines

Accepted Answer

Common deadlines: individual/partnership returns (April 15), S-corp/partnership Form 1065 (March 15), quarterly estimated taxes (Apr/Jun/Sep/Jan), payroll deposits (varies). State deadlines differ — check your state revenue department.

Question 51

QBI deduction

Accepted Answer

Qualified Business Income (QBI) deduction under Section 199A may reduce taxable income for pass-through businesses subject to income limits and business type rules. Complex — consult a tax professional.

Frequently Asked Questions

LLC Formation

LLC Taxes

Taxes

EIN

Registered Agent

Compliance

Services

Business Setup

Pricing

Documents