LLC formation: How to form an LLC in different US states
Posted on Wednesday 15 July 2009
A limited liability company is a business structure that is very similar to that of a corporation. The difference between these two is that the liabilities of a limited company are much less than that of a corporation. In the United States, limited liability companies are new ways to help small business owners and employees gain the major benefits by owning corporations. A limited company does not have shareholders and they are not required to meet at shareholders meetings. The following are some of the common steps to form an LLC in different US states:
Choosing a proper name for your LLC
To form an LLC in any of the US states, the first thing to be done is to choose the name of your LLC and be sure that it complies with the rules of the particular state’s LLC division. The name has to be different than any other LLCs filed and also must end with an LLC designator. Until you file the articles of organization, you can reserve a name for your LLC for a limited period of time.
Need to file articles of organization
The LLC filing office demands the articles of organization from your company once you are done with the name of your organization. There are some basic documents that are required to file the articles of organization also known as the certificate of formation or certificate of incorporation.
Filing fees while submitting articles of organization
To submit the articles of organization, you are required to pay a filing fee. This can be considered one of the small disadvantages of forming an LLC compared to a partnership business or a sole proprietorship. The minimum fee that is charged by most of the states in the United States is around $100.
Required Registered Agent
A registered agent is very important for forming an LLC in the United States. The name and address of this person, usually a member of your LLC, has to be registered under state laws in the LLC filing office who will act as an ‘agent for service of process’ for any future lawsuit involving your LLC.
LLC operating agreement
The state laws demand that an LLC operating agreement must be prepared embodying the rules for the ownership and operation of the business. This is not filed with the LLC filing office.
License and Permits for an LLC
The license and permits are the last but most important step in forming an LLC in the United States. This generally includes the business license, tax registration certificate, a seller’s permit, a federal employer identification number and a zoning permit.
TAGS: form LLC,
Limited Liability Companies [LLC],
Limited Liability Company,
LLC Formation
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