Limited liability companies for small businesses seeking flexibility have increasingly become popular. 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. Read on for you to know more about limited liability companies.
First, consider getting an LLC form copy from your state. You can check for the form online or with the secretary of state office. It is advisable for you to know early if you will be required to post a notice in the newspaper before you consider setting up an LLC.
Ensure you are well aware of the rules regarding business names. Select a business name that adheres to the state’s rules. Every state has prohibited list of words. There should be an LLC designator at the end of every legal name. Avoid choosing a name that is the same as another LLC found in your state.
The next step is filling out the LLC article organization form. It is a simple process because you need to notify the state about your business name, business purpose and the address of your principal office. You are also needed to fill names of the initial members and the registered agent for your legal documents.
You may need to put on notice in your new local newspaper based on the requirements of your state. You need to state your intention to form an LLC. Consider doing this before filing the article of organization form. Confirm things with the secretary of state to be sure.
After you have filed the articles of organization form where you need to send it to the secretary of state together with their filing fee. Find out if you will have to pay for corporate fee together with the filing fee. After you are done with the legal filings you need to come up with an LLC operating agreement. This is not a requirement by the state and it is not necessary if you are a sole owner of an LLC. It is a written agreement that has the terms that the owners of the LLC need to follow. An operating agreement includes the management and financial responsibilities and rights of the LLC members.
It is essential for you to be on the same page with your business partner. This is why you need to decide on the details of the operating agreement in advance before you file the LLC articles of organization. Doing this in advance will help you identify business partners who are not interested in becoming part of it and find someone else before you consider filing. It is advisable to set up an LLC in the same state you do business.
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