Forming an LLC: Frequently Asked Questions
Forming an LLC is one of the most important steps to take when starting a business2 min read
Forming an LLC is one of the most important steps to take when starting a business. Limited Liability Companies (LLCs) provide owners with the ability to separate their personal assets from their business debts and liabilities, shielding their private financial affairs from the eyes of creditors and potential litigants.
Whether you are starting a new business or changing the corporate structure of an existing one, the process of forming an LLC can seem overwhelming. Though it is highly recommended that you seek counsel from a corporate legal professional, it is important to at least be familiar with the basics of the LLC formation process.
Below we’ll answer several of the most commonly asked questions about forming an LLC in Los Angeles, as well as offer some helpful tips to those who are looking for quality legal counsel.
What is the Process of Forming an LLC?
The process of forming an LLC is fairly straightforward in Los Angeles. First, you’ll need to choose a unique name for your LLC that is not already in use in the State of California. Once you’ve found an available name, you will be required to file Articles of Organization with the State. These Articles of Organization must include the company’s name, address, an explanation of its purpose, and its terms of existence.
Additionally, you’ll need to prepare an Operating Agreement that outlines the roles and responsibilities of LLC members. This document typically includes details about the LLC’s internal management, how profits and losses will be treated, and how ownership will be divided amongst members.
It is also important to obtain a federal Employer Identification Number (EIN) from the Internal Revenue Service (IRS) to use for business operations. Once these steps have been completed, you can then begin to market and operate your business as a legal entity.
Do I Need to Find an Attorney to Form an LLC?
Though the process of forming an LLC is fairly straightforward and can be completed alone, the assistance of an experienced corporate attorney can be immensely helpful. Lawyers can offer insights into the best structures for your business, provide essential guidance on tax matters, and most importantly, ensure that all of the necessary paperwork is completed accurately and in a timely manner.
While it is not essential to have an attorney form your LLC, doing so can be a valuable investment.
Where Can I Find Quality Legal Counsel?
If you are looking for quality legal counsel while forming your LLC, UpCounsel is the perfect place to start. With its extensive network of experienced lawyers, UpCounsel offers both one-time consultations and entire freelance legal departments to clients of all sizes – from small businesses to the Fortune 1000.
In addition to providing access to high-quality attorneys on demand, UpCounsel also ensures that its online attorneys have an average of 14 years of legal experience in corporate and business law. All of their profiles also display client ratings and reviews, so you can easily find the best lawyer to suit your needs.
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