LLC for consultants and agencies
Consulting and agency work means contracts, deliverables and advice that clients rely on. An LLC puts a company between those obligations and your personal assets, satisfies enterprise procurement (EIN, W-9, certificate of good standing, insurance in the company's name) and gives you a clean structure for adding partners or senior staff with equity.
At a glance
Incofile forms the LLC, obtains the EIN, provides the registered agent and a US business address, drafts the operating agreement for single or multiple owners, and files the S-Corp election when it pays off.
Why agencies formalize early
The first enterprise client usually forces it: their vendor onboarding needs a legal entity, insurance certificates and sometimes a certificate of good standing. Doing it then, under time pressure, is worse than doing it in a quiet week. An LLC also makes it possible to bring in a partner with a defined share and exit terms instead of a handshake.
Owners, partners and the operating agreement
For a multi-owner agency the operating agreement is the most important document you will sign: ownership percentages, capital contributions, profit splits, who can sign contracts, what happens when someone leaves, and how disputes are resolved. Incofile's agreement covers these; have a lawyer tailor it if the stakes are high.
Tax planning for service businesses
A single-member LLC is taxed as a sole proprietorship and a multi-member LLC as a partnership by default. Once profits are well above the owners' reasonable salaries, the S-Corp election can reduce self-employment tax; Incofile files Form 2553. Non-US agency owners cannot use the S-Corp election but typically owe no US income tax on work performed abroad — Form 5472 still applies.
Professional liability insurance
An LLC limits claims to company assets; it does not make claims disappear. Errors-and-omissions insurance in the LLC's name is standard for agencies and consultants and is frequently required by enterprise contracts.
Which state should you choose?
What Incofile does for you
- Form the LLC in your chosen state
We prepare and file the formation documents, act as organiser and provide the registered agent in that state — your home address stays off the public record.
- Obtain the EIN
We apply to the IRS for your Employer Identification Number so you can open the bank account and set up payments.
- US business address and mail scanning
A real US street address for banks, marketplaces and payment platforms, with every letter scanned to your portal ($155/year).
- Operating agreement and banking resolution
The documents banks, Amazon, Walmart and payment processors ask for, prepared in your company's name.
- Compliance calendar in your client portal
Annual report deadlines, registered agent renewal and tax-filing dates, with reminders before each one — plus 24/7 access to every document.
Ready to set up your LLC the right way?
Transparent one-time pricing from $0 + state fee. Real humans answer your questions by email and chat, and your client portal shows every step of the filing.
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Consultants & Agencies — frequently asked questions
LLC or corporation for a consultancy?
An LLC for almost all consultancies and agencies; a C-Corporation only if you will raise venture capital or grant stock options widely.
Can a non-US agency bill US clients through a US LLC?
Yes — that is one of the most common uses. Work performed outside the US is generally not US-taxed; the annual Form 5472 is required.
How do I add a partner later?
Amend the operating agreement and, in some states, file an amendment. Incofile handles both.
What is a certificate of good standing and why do clients ask?
It is the state's confirmation that the company exists and is current on filings. Procurement teams request it; Incofile can obtain it within days.
What does the LLC cost annually?
The state annual report or franchise tax, registered agent renewal and tax-return costs — no recurring Incofile fees unless you add services.