Recommended for Faith-Based Entrepreneurs
The LLC combines liability protection, tax flexibility, and values-based governance — making it the ideal starting point for most mission-driven ventures.
Advantages
- Members (owners) protected from personal liability
- Flexible taxation — choose how you want to be taxed
- Low formation cost; can have one or many members
- Can accept other corporations as investors
- Operating agreement can reflect your values and governance
Tax Filing Options
- Single-member LLC → Schedule C (default)
- Multi-member LLC → Form 1065 + K-1s (default)
- Can elect S Corp or C Corp taxation if beneficial
- Consult a CPA to determine best election for your situation
Key Considerations
- Formation cost: $50–$500 state filing fee; operating agreement recommended
- Compliance: annual state report, separate bank account, follow operating agreement
- Ownership: highly flexible — one or many members
Action Item: Obtain Your EIN
- Apply online at IRS.gov — free, takes minutes
- Required to open a business bank account and file most business returns
- Protects your Social Security number from business exposure