How a Husband and Wife Can Form an LLC in Russia

Valen

5 min readMay 10, 2022

10.05.2022

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Developing an LLC as a married couple adds a professional partnership to your relationship, but how you decide to form the LLC relies on management and tax choices.

Creating a husband and wife LLC can be a great way to manage your company. When you start any business it is important to set it up perfectly and understand the tax effects involved.

Get Started

To create an LLC you need to name your limited liability company, choosing a name that is not in use by another business in your region. The state website will generally link to the database where you can search names.

Once you’ve chosen a name, you can start an LLC by selecting a registered agent, a person, or a company that is licensed to do business in your region.

The registered agent is who will receive legal notices such as service of process and tax forms on behalf of your LLC spouse company. You can designate yourself in some states, but it is generally best to select a company that specializes in providing this service.

Get Organized

When your marriage partner is also your business partner, you have options when setting up your company. A limited liability company (LLC) can be a fantastic way to organize your business.

Setting up an LLC with a spouse is one of the easier and more flexible entities you can establish.

Forming an LLC as a married couple follows the same steps as forming an LLC with any other partner in the business.

Getting Started

If you choose an LLC as the right structure for your company, the first step is to choose a name that’s not currently in use by another company in your state. Your state website will generally link to the database where you can search names.

Once you’ve selected a name, determine whether you need a registered agent.

Some states require you to obtain a registered agent. A registered agent is an authorized person or company that will receive and process legal documentation on behalf of your business. It’s important to comprehend your state’s criteria.

You must also file a construction document with your state, typically called articles of organization, and pay a fee. Once your state accepts your articles of organization, you have officially formed an LLC possessed by partners.

Write an Operating Agreement

The next step is making an LLC operating contract, which is a contract between you and your partner that specifies how your LLC will be governed.

Even though you are in company with your partner, one of the most essential things you can do is have an operating arrangement drafted using an attorney. This agreement will lay out the initial ownership system and important details that will dictate different events, such as if one of the spouses no longer wants to be in the partnership or the case of a divorce, or if one spouse were to pass away.

In your operating agreement, you can suggest what percentage of ownership you each have. However, if you live in a neighborhood property state and decide to divorce, the court will divide the LLC equally. The operating agreement also includes how you plan to handle a business closure or what to do in case one person likes to buy out the other in the future.

Keep in mind that you can set ownership any way you like and can even name just one spouse as the owner and set the other as an employee. Income taxes and payroll taxes will need to be withheld for the employee’s spouse.

Understand Tax Implications

Because you are creating your LLC as spouses, you have some options when it comes to your LLC taxes. Income taxes from your LLC are based on your salary and profit from the business. If you decide to set up your LLC with just one spouse as a member, you can type it as a sole proprietorship or a corporation. If your LLC has better than one member, you can classify it as a partnership or company.

Partnerships

If you decide to identify yourselves as a partnership, you’ll pay tax privately on your income. Because you are married, the TAX authorities allow you to separate each stream of income, costs, and tax credits proportional to your percentage of rights in the LLC.

Consider a Single Member LLC

Since the capital earned from an LLC flows via 100% to your return where you and your spouse file jointly, it is occasionally easier to just form one of the partners in the marriage in a single-member LLC.

Another thing to think is that when you have a partnership, the tax filing deadline is March 15, not April 15, and the penalties are increased if you do not file that tax return on time.

Forming a business with a spouse provides possible tax-saving opportunities.

For instance, both individuals may now be able to donate more toward retirement.

Some additional expenses can be deducted as business costs.

Also, forming a business with a spouse may open the door for the business to take advantage of several government programs strived at supporting protected classes of individuals.

Forming an LLC as a married couple gives you the chance to work jointly and leverage some tax flexibility. Make sure to observe the steps so you can enjoy all of the benefits an LLC offers.