Everything You Need To Know About Forming A Limited Liability Company
There has been an increase of limited liability companies for small businesses seeking personal liability protection. The requirements vary from state to state. However, setting up an LLC is a simple process that takes a few hours depending on how complex your organizational structure is. This guide provides you with everything you should know about putting up a limited liability firm.
First, consider getting an LLC form copy from your state. You can look for this form online or from the secretary of state office. Make sure you find out in advance if you need to post a notice in the newspaper before you set up an LLC.
It is also vital for you to know the rules about business names. You need to pick a business name that complies with the rules of the state. Each state normally has a list of words which are prohibited. The legal name you choose needs to end with an LLC designator. The name you choose should not be similar to another LLC in the state you are filing.
It is essential for you to fill an LLC article organization form. It is a form that includes the name of your business, the purpose of your business and your principal office address. The form also requires you to provide names of the initial members and legal documents registered agent.
Depending on the requirements of the state you may have to put a notice in the local newspaper. You need to provide details about why you need to form an LLC. It is advisable to do this before filing articles of organization. For you to be sure, you need to confirm with the secretary of state in advance.
Send the article of organization form to the secretary of state with the filing fee. Confirm in advance if you’ll be required to pay for corporate fee alongside with their filing fee. After you are done with the legal filings you need to come up with an LLC operating agreement. You don’t have to do this if you are the sole owner of an LLC. It is basically a written agreement that includes the terms that the owners need to adhere to. The agreement includes the financial as well as the management responsibilities and rights of the members.
It is essential for you to be on the same page with your business partner. It is advisable for you to decide on the terms of operating agreement before you file for LLC articles of organization. This will help you know business partners who don’t want to be included in it and pick someone else before you file. It is advisable to set up an LLC in the same state you do business.