LLC Filing: Everything You Need to Know

LLC filing involves the paperwork that you are required to file with the respective state you organize your LLC in. Particularly, an LLC, also referred to as a Limited Liability Company, requires you to file various paperwork in terms of the business structure, articles of organization, business license(s), and other paperwork that is required of the particular state you wish to operate.

How to Form an LLC

[1] Choosing a name for the LLC

The name can't be the same as the name of another LLC on document with the Secretary of State’s office in the state you are operating in. You can view the list of names already being used on the Secretary of State’s website to ensure that you are using a name that is currently open to use. Further, the name must end with an LLC designator, i.e., "Restricted Liability Company" or "Constrained Company" or a shortened form of one of these expressions, i.e., LLC or L.L.C. Other important items must be kept in mind, as the name cannot utilize certain terms, including but not limited to Bank, Insurance, Corporation, or City. If you are not a lawyer, you cannot utilize the terms ‘Lawyer’ or ‘Attorney’. Likewise, if you are not a doctor, you cannot use such terms as ‘Doctor’. Be sure to review the Secretary of State website for all requirements and limitations.

[2] File Articles of Organization     

Filing the articles of organization is rather simple and straightforward. It must include the name and address of the owner as well as a registered agent, who will act as the legal agent for potential legal proceedings that may arise. This document can usually be obtained from the Secretary of State’s website; however, this document can also be found in the public domain as a template version.

[3] Create an LLC Operating Agreement 

This will include the purpose of the business, the management of the LLC, the meetings and voting that will take place on an annual (or quarterly) basis, depending on how the owner of the LLC chooses to operate, whether or not employees will be hired to work for the business, and any other important items that the LLC owner deems important for the overall operation of the business.

[4] Publish a Notice (Some States Only)    

It is a prerequisite to distribute a straightforward notice in a nearby daily paper, expressing that you expect to create an LLC. The notice is required to be distributed a few times over a period of weeks and after that present a "sworn statement of production" to the appropriate Secretary of State.

[5] Get Licenses and Permits          

The LLC owner will need to obtain any appropriate licenses required, depending on the type of industry the business will operate. This could include zoning permits, restaurant permits, employee permits, etc.

[6] IRS default designations

Immediately after creating the LLC, the IRS automatically treats the business as a partnership, but only for income tax purposes. If the LLC is solely-owned, then tax must be paid on business profits as if it were a sole proprietorship. Both designations have different tax filing rules. There is an option to elect corporate tax treatment by filing IRS Form 8832.The LLC designation cannot be changed for five years.

[7] Corporate filing requirements  

If corporate tax election is chosen for the LLC, the IRS will treat the business as a separate taxpayer in the same way a separate taxpayer is from his friend. The business is solely responsible for reporting all income and deductions on Form 1120 each year and paying the appropriate income tax by the deadline.

[8] Sole proprietor filing requirements      

In a sole proprietorship, the IRS does not allow the LLC to be separate and apart from the owner. Therefore, Schedule C will need to be filled out identifying the difference between the LLC operations and the owner, thereby ensuring that the business expenses do not fall on the owner personally.

[9] Article 3—Governing Authority           

The authentication of development must state whether the LLC will or won't have directors. On the off chance that the LLC will have supervisors, select choice An and give the name and address of each underlying director in the space gave.

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