The formation of your Limited Liability Company is a filing done with the Secretary of State to formally and legally list your company in a state. This allows you to do business, run payroll and so on. 
The returned paperwork is known as your Articles of Organization.

Benefits of starting an LLC include some of the following:

1. Liability: One of the most popular reasons for going with an LLC is the protection it provides. Personal assets of the business owner(s) are protected from the company’s debts and liabilities. In case of a lawsuit, only the company’s assets are at risk.
2. Taxes: By default an LLC is a pass-through entity, which means that the company’s profits and losses “pass through” to the members’ personal tax returns. This avoids double taxation. Members can also decide if they want to be taxed as a corporation instead if they find that it is more advantageous to do so, granting a layer of flexibility.
   
3. Operational Ease: LLCs have fewer administrative requirements and are generally easier to set up and maintain than Corporations. A board of directors is not required for an LLC and annual shareholder meetings are nonexistent, creating less work to keep the business functioning from a structural standpoint.
   
4. Management: Corporations are governed by a board of directors, whereas an LLC has the flexibility to be governed by Members or Managers. Members are owners of the business, but members can elect one or more managers to make decisions on behalf of the business. While Managers can be members (owners) too, they aren’t inherently. Anyone can be a manager, which also thereby protects the anonymity of the business owners since they won’t be publicly listed.
   
5. Credibility and Brand: Some suppliers, partners and engines such as Google prefer to deal with a “legitimate” business. By forming an LLC, you receive paperwork showing that your business exists in an official capacity that is recognized by the state you’re filing in. This also helps you look more credible to customers or clients who want to do business with you.
   
6. Local or Government Benefits: The state you’re filing in may offer local incentives for forming an LLC, such as resources in the area or tax breaks. Once you have an LLC, you’re also eligible to apply for grants and loans.
   
7. Monetary: Having an LLC makes it much easier to establish a bank account, coordinate with payment processors and set up relations with vendors, affiliates and partners. The world of e-commerce becomes much easier to navigate when you have official paperwork.
   
8. Privacy: Depending on which state you file in, the state record may offer privacy protection. States like Wyoming and Delaware are popular due to being “private states”, meaning they don’t require the member information to be public knowledge.

While there are certainly many more perks to forming an LLC, the above eight reasons are a great starting point for understanding the advantages to forming a Limited Liability Company in the United States. Each state varies on requirements, what information it shares with the public and the fee required in order to file.