How to Form an LLC ?

Answer 1

An LLC or Limited Liability Company is a business entity which consists of members or owners that have limited liability for the debts and obligations, similar to shareholders in a corporation, but less formal and more flexible than a corporation.

The steps to form an LLC are as follows:

1. Choose a Name for the LLC: The name of the limited liability company cannot be one that is already taken or being used. Check the Secretary of State or LLC Office for your state for availability. The name will also need to have LLC attached to it or a variation such as Ltd. Liability Co. You will need to check your state’s rules for the name as there are also words that cannot be included such as “Bank” or “City”.
2. File Articles of Organization: You will need to prepare Articles of Organization and file them with the Secretary of State or LLC Office. The Articles of Organization typically include the name of the LLC, the address and the registered agent, which is usually one of the members of the LLC.
3. Pay the Filing Fee: Limited liability companies are required to pay a filing fee when the Articles of Organization are filed, which is usually around $100 but varies by state.
4. Prepare an Operating Agreement: The Operating Agreement does not need to be filed with the state and generally includes operation and ownership rules for the business. The Operating Agreement may include percentage interests of the business, voting power, management of the LLC and rules for meetings and votes.

Each state has different rules for forming a limited liability company. For instance, in some states you will need to publish a notice in the local newspaper including the intent to form an LLC in order to make it official. Check with the Secretary of State or LLC Office to ensure that you have followed all of the requirements necessary to form your LLC as well as any licenses or permits that you will need. You may wish to consult with an attorney if you have questions.

Answer 2

A Limited Liability Company (LLC) combines the business attributes of a partnership and a corporation. An LLC offers the legal protection of personal assets, and requires far less paperwork and fees than the formation of other business entities. Rules for forming an LLC vary by state.

To form an LLC, articles of organization have to be filed with the Secretary of State's office. The form usually asks basic questions such as the name of the LLC and its members, and contact information. The required filing fee varies by state, and usually ranges from $100 to $800.

Business names must comply with state rules. The name cannot be the same as another name filed with the secretary of state's office, and must end with an LLC designator. Certain words cannot be used as part of the name. The state's office can tell you whether a name is available, and in most cases you are able to reserve a name for a small fee.

The articles of organization is a simple document that you can usually prepare without legal assistance. It only takes a few minutes to fill in the blanks and check the appropriate boxes. The form typically asks for the LLC name, the associated address, and in some cases the name of the owners. All of the owners can sign the articles of organization, or designate a single person to prepare and sign them. You will also need to designate a registered agent-usually one of the members. This person will be responsible for receiving legal papers of any future lawsuit, or other legal documents.

Operating agreements are not required for filing articles of organization, but it is important that you create one. There is no certain requirement of what is needed in operating agreements, but typically they set out the rules for ownership and operation of the LLC. Other information included in the operating agreement is ownership percentages, the rights and responsibilities of the members, rules for holding meetings and voting, and other pertinent information.

Other state licenses may be required to do business after the LLC is formed. You should check your state laws for required licenses for your industry. Forming an LLC is a relatively easy process. It does not require a lawyer, but it is a good idea to have one look over the forms before submitting them.

Answer 3

An LLC, or Limited Liability Company, can be an advantageous way for a business of any type or size to be legally organized. LLC's are unique in that they combine some of the most notable benefits of partnerships (income taxation) and corporations (limited owners' liability) under one umbrella. Here, you'll learn the basics of setting up an LLC for your own budding business.

Choosing Your Company's Name

When you've made the decision to file your business as an LLC, choosing a name is the first step. In most states, it must be totally unique and end with the identifying "Limited Liability Company" (or equivalent) wording. This name will appear on all the documents you file with the state government from here on.

Filing the Articles of Organization

In short, the Articles of Organization for LLC filings are mostly boilerplate and easy to complete. They'll ask brief, answerable questions about the business. Along with these articles, you'll have to designate a "registered agent" for your company. This person, usually one of the owning partners, will be the one that the state contacts in the event of a lawsuit. Of course, you should also be aware of the filing fees accompanied with LLC filings, generally a few hundred dollars in most states.

Some states' fees are significantly higher than others. California's fees, for instance, amount to roughly $800. Getting the Necessary Licenses and Permits

Before your company opens for business, it's important to maintain contact with the state government in order to ensure that you've attained all the necessary licenses and permits needed. All businesses, for example, will need documents such as a tax registration certificate and an FEI (or Federal Employer Identification) number in order to operate legally. Depending on the nature of your business and the state where it's operated, additional permits involving zoning and selling products might also be necessary. Again, it is essential to keep in touch with those in the state government to cover all of your new company's bases.

Creating an Operating Agreement

A large portion of LLC's are formed with multiple "partners", or owners, at the helm. Though most states don't require an operating agreement in order to legally form an LLC, it is always in partners' best interest to do so. Included should be details about how the business will be managed, each member's percentage stake in the company, each member's right to profits and losses, and what will be done in the event of a partner's exit or incapacity.