How do I form an LLC in Guam?

There are numerous benefits to forming a Limited Liability Company (LLC) in Guam. There are several steps and legal requirements to set an LLC up. Here's a general outline of the process to form an LLC in Guam and a checklist from the Guam Department of Revenue and Taxation (DRT):

• Choose a Name for Your LLC:

  Choose a unique name for your LLC that complies with Guam's naming requirements. The name must include "Limited Liability Company," "LLC," or abbreviations thereof. You should conduct a name search to ensure your desired name is available and not already in use.

• Appoint a Registered Agent:

  Designate a registered agent with a physical address in Guam who will be responsible for receiving legal documents and official correspondence on behalf of the LLC.

• File Articles of Organization:

• Prepare and file Articles of Organization with the Guam Department of Revenue and Taxation (DRT). You will need to provide information such as the LLC's name, address, registered agent details, duration, initial contributions, and the purpose of the LLC.

• Pay Filing Fees:

• Pay the required filing fees associated with the Articles of Organization. The fee is currently $250, but may change so check the current fee schedule on the DRT's website.

• Create an Operating Agreement:

• While not legally required in Guam, it is strongly recommended to create an operating agreement that outlines the internal operating rules and management structure of your LLC. This document is typically kept on file with your LLC's records.

• Obtain an EIN:

• Obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This number is required for tax purposes and to open a business bank account. You can apply for an EIN online through the IRS website.

• Comply with Local Business Requirements:

• Depending on the nature of your business, you may need to obtain additional licenses or permits at the local level. Check with the Guam Department of Revenue and Taxation and other relevant local authorities to determine any specific business licensing requirements.

• File Annual Reports:

• In Guam, LLCs are required to file annual reports with the DRT between July 1st and September 1st to maintain their active status. These reports must include updated ownership information and other relevant details. A copy of the form can be found on the DRT website.

If you have questions about whether setting up an LLC is right for you and need help drafting Articles of Organization and an Operating Agreement, contact us to set up a consultation.