Creating an LLC Tips for Executives
Creating a limited liability company (LLC) is a complex venture and requires the expertise of experienced business lawyers3 min read
Creating a limited liability company (LLC) is a complex venture and requires the expertise of experienced business lawyers. If you are an executive based in the United States with an eye on starting an LLC, you should take into account certain factors such as choosing the type of business structure, deciding on a name for the LLC, understanding local regulations, and more. With your success as an entrepreneur in mind, this guide provides you with a comprehensive overview of the key steps to form an LLC.
What is an LLC?
An LLC is a business structure that provides limited liability protection to its owners, commonly called members. The LLC owners are not responsible for any of the debts incurred by the LLC, and are not personally liable for anything that may arise. Since LLCs are treated differently in various states, consulting with business lawyers with an in-depth understanding of local laws is essential when forming an LLC.
Steps to Form an LLC
When forming an LLC, here are the standard steps that are followed:
Choose the Right Type of Business Structure
When you form an LLC, you will need to decide on the type of business structure you want to have. Generally, very few requirements are needed to start an LLC. It is important to remember, however, that partnering with an LLC comes with certain legal and financial commitments.
Choose a Name for the LLC
When starting an LLC, one of the first steps is to choose an official name for the business that meets the legal requirements in your state. Each state has its own guidelines regarding the names of LLCs, so you may need to do research to ensure that your chosen name is compliant with the state’s requirements.
Decide on the Registered Agent
When forming an LLC, you must also decide on the registered agent. This person is legally responsible for receiving communications from the state, such as annual reports, tax documentations, and other important business documents. It is important to note that not all states allow the LLC owners to be the registered agents.
Draft an Operating Agreement
The operating agreement is a document that outlines the rights and responsibilities of the LLC members. The operating agreement should include how the LLC will be managed, who will be responsible for making decisions about the LLC, how the members are assigned a share of profits, and more.
File the Articles of Organization
This is the document that formally states the formation of the LLC. You will need to submit the articles of organization to your state’s Secretary of State office. It is important to note that the requirements for filing and filing fees may vary from one state to another.
Obtain a Business License or Permit
Each LLC must obtain a business license or permit before it can start doing business. You will need to check with your secretary of state office for the application process and fees associated with business license or permits for your LLC.
Finding Experienced Business Lawyers
If you are an executive based in New York seeking legal support from business lawyers, consider working with UpCounsel. Whether you need a one-time consult or an entire freelance legal department, UpCounsel's network of experienced lawyers has you covered. From small businesses to the Fortune 1000, top-notch companies trust UpCounsel and its attorney community for high quality, cost-effective legal services. UpCounsel’s attorneys have an average of 14 years of experience and their online profiles display client ratings and reviews of recent work.