Considering LLC formation? Here are a few pointers to help you with LLC formation.
A Limited Liability Company (LLC) is a fast growing business structure. LLC formation is the important decision that you have made for your company and here are the steps that guides you with the procedure in this process.
- Legal Name: First step in LLC formation is choosing the name of your LLC and it needs to meet the state’s LLC division rules. The requirements differ from state to state on LLC formation.
- The name that you are choosing for your LLC formation cannot be the same as another filed LLC.
- The name should end with an LLC designator such as Ltd, LLC, etc.
- If certain words are prohibited in that particular state for LLC formation then you cannot use those words for your LLC name.
- Articles of Organisation: The second step in LLC formation is preparing and filing the articles of organisation with your state’s LLC filing office. Be familiar with the names “Certificate of organisation” and “Certificate of formation” for LLC formation as some states refer them in these names too. You can contact your state LLC office to get the specific requirements for LLC formation in that state.
- Filing fee: In this LLC formation, you need to pay a filing fee when you submit your articles of organisation. Most of the state demand only a moderate amount on LLC formation but expect a high price in few of the states such as California.
- Information needed for LLC formation: Articles of Organisation is a simple and short document that demands not much of time. As an LLC owner, you can do it by yourself or even approach a professional to handle during LLC formation.
- Registered Agent: You need to designate a person as a registered agent in this LLC formation process. Usually, one of the LLC members is designated during LLC formation and he will be receiving legal papers in future involving any lawsuit of the LLC.
- LLC Operating Agreement: Though LLC Operating Agreement is not necessary for filing process in LLC formation, it is rarely required by State Law. Creating an Operating agreement is a better option as it sets out rules for the ownership and operation of the business during LLC formation.
- Notice Publication (restricted few states only): Usually, LLC formation process doesn’t accompany notice publication but few states demand this procedure to be followed. You are required to publish a notice about LLC formation for several times and then submit an “Affidavit of Publication” to the LLC filing office.
- Licences and Permits: Congrats on your successful LLC formation journey since your LLC has become official now. But before you step into your business world, you need to get the licences and permits to operate during LLC formation.
These are top of the list requirements for an LLC formation. But remember that each state has its own version for LLC formation so you might experience some difference in the process and the information required.