There has been an increased popularity of limited liability companies for small firms looking for flexibility and personal liability protection. The requirements are different from state to state. The good news is setting up an LLC is a process that is simple and only takes up several hours based on the complexity of your organizational structure. Read on for you to know more about limited liability companies.
You need first to get registered agent LLC copy from the 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.
Ensure you are well aware of the rules regarding 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 Asset Protection LLC designator. The name you choose should not be similar to another LLC in the state you are filing.
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.
Depending on the requirements of the state you may have to put a notice in the local newspaper. You need to state your intention to form an LLC. Consider doing this before filing the article of organization form. For you to be sure, you need to confirm with the secretary of state in advance.
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. 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. This is not a requirement by the state and it is not necessary if you are a sole owner of an LLC. This written agreement that includes the terms is vital if you're more than one owner of the LLC. An operating agreement includes the management and financial responsibilities and rights of the LLC members.
It is important for you and your business partners to be on the same page. 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 wise for you to set up an LLC in the state you're doing business.
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