One of the most popular business forms is a limited liability company (LLC). However, your preferred form for your business can vary depending on the needs and requirements specific to you. One of the advantages of an LLC is the business liability protections it offers. The requirements for setting up an open LLC can vary depending on the state. Regardless, an experienced business attorney can help you every step of the way.
Setting up an LLC
To set up an LLC for structuring your business, you will need to comply with all the legal requirements. An LLC does not require any of the complex formalities that are needed in other business entities. Some of the common requirements for forming and operating an LLC are discussed below.
- Choosing a business name
- Deciding on a registered agent
- Collecting, preparing, and filing the LLC article of organization form
- Developing an operating agreement
- Keeping the LLC active
Choosing a Business Name
The business name you choose must be unique and must not be repetitive. It must not confuse the average customer by confusing your business with another. Selecting the appropriate name forms the first step of setting up an open LLC.
Further, the name must not be used by another organization. Also, the name must not make it sound like you are affiliated with a government agency. To make sure your name is not in use, the LLC name databases can be checked online. The Venture Lawyer can help you with all the important regulations that must be followed while starting with your LLC.
Deciding on a Registered Agent
It is a basic requirement of every state to have a registered agent when registering an LLC. Your registered agent is an individual who will receive legal documents on your behalf. After completing all the formalities, the registered agent will give all the documents to the owner of the LLC.
Collecting, Preparing, and Filing the LLC Articles of Organization
Articles of Incorporation are required for establishing an LLC. Articles of Incorporation are the organizing documents of the organization, similar to a charter or bylaws. Every state has specific requirements for what must be contained in the articles of incorporation. While some business owners choose to draft their own articles, it is always wise to seek the input of experienced legal counsel to make sure you are in compliance.
Once drafted and executed, the document will need to be filed with the appropriate agency of your state’s government.
Developing an operating agreement
All the details about the legal, management and financial rights of the members that are involved in the LLC will be mentioned in an operating agreement. An LLC may involve one member or multiple members. All the important and relevant information for the day-to-day management of the organization must be specified in the agreement.
Keeping the LLC active
After your LLC gets up and running, you still have work to do every month and every year to see that your LLC stays legally compliant. The LLC must follow all the guidelines as required by state law and meet all compliance deadlines. Let an experienced business lawyer help you with all of this today.
