Forming a limited liability company (LLC) is not difficult. First of all, you must decide on the type of business, name and the location. Then check the availability of the name and reserve it if you like. The name should end with the letters LLC or other permitted abbreviations to indicate that the venture is of limited liability. The next step is to file the required forms, along with the stipulated fees. Normally the papers are to be submitted to the Secretary of State in the state where the LLC is to be registered. Since each state has its own laws governing LLCs, the details and the fees may vary according to the location. In some states it is mandatory to insert an advertisement in a local paper declaring your intention to form the LLC. In other states, certain words like bank or insurance cannot be part of the name. You can do the registration yourself. There is software available, which will help you to fill in the forms according to the rules in your area. This software is not costly. Alternatively, professional services are available, to complete the entire procedure within a couple of days for a reasonable charge. You are in business, provided the necessary licenses and permits required for new business ventures have been obtained. You also have the option to stipulate a delayed effective date in the application is available. The main paper to be filed is the Articles of Organization. Certain states call it Certificate of Organization or Certificate of Formation. All members can sign the Articles, or they can authorize one person to that. This document should provide, among other details, the name and address of the LLC, its objectives, main place of business, number of shares, provisions for adding new members, names and addresses of Directors and the name and address of the Registered Agent. It is essential for each LLC to have a Registered Agent with a street address in the state where it is registered. This arrangement is mainly for receiving notices. The Registered Agent may be a person within the LLC, or an outsider. The office of the Secretary of State in your state will provide advice and assistance to register a Limited Liability Company. |
