LLC Incorporation Documents: Everything You Need to Know
LLC incorporation documents are a specific set of forms required to legally create an LLC and determine the rights and duties of its members.3 min read
2. Why Form a Limited Liability Company (LLC)?
3. Can My LLC Have an Unlimited Lifespan?
4. What Is the Difference Between a "Member" and a "Manager" of an LLC?
5. Does an LLC Have to Hold Meetings?
6. How Much Will It Cost to Form and Operate an LLC?
LLC incorporation documents are a specific set of forms required to legally create an LLC and determine the rights and duties of its members. LLC incorporation documents are a main part of the filing process and should be approved by the state in order for an LLC to be legally registered as a business. These documents include the Articles of Organization or Certificate of Organization and act as an agreement containing essential information about the business.
What LLC Legal Documents Do I Need to Form an LLC?
The person who is filing an LLC on your behalf may not necessarily be a part of an LLC, but after formation of an LLC, he/she must resign duties to its members or organization. A lawyer would be able to file all documents on your behalf as well. On the other hand, you may send complete paperwork all by yourself.
To file articles of organization for an LLC, you may contact the Secretary of State office or an appropriate state agency. Secretary of State's office is the government agency where LLC is commonly established, but some states like Florida, Arizona, and New Jersey work under diverse conditions and demand registration of an LLC with other state government agencies as well.
All the necessary government-provided forms can be found on the Secretary of State's website; however, a substitute name such as “certificate of formation” or “certificate of organization” might appear as the name of the document.
Consultation with an attorney or competent entrepreneur familiar with the process of filing can be a helpful and clever thing to do.
An LLC is obligated to have a tax identification number that should be requested with the IRS.
Why Form a Limited Liability Company (LLC)?
- Built under state laws as a private limited company, an LLC has both corporation and partnership features, but its members are not personally liable for the company's debts.
- There can be more than one owner of an LLC entity, and he/she is called a "member."
- Owners of an LLC are taxed individually on the company's profits, similar to a sole proprietorship or partnership.
- An LLC is accountable for the state franchise tax. To learn more about franchise tax in your state, it is best to contact the Comptroller for your state.
- For information about federal employer identification numbers, federal income tax filing requirements, tax publications, and necessary forms, call (800) 829-3676 or visit the Internal Revenue Service website at www.irs.gov.
Can My LLC Have an Unlimited Lifespan?
Yes. Due to the recent IRS code changes, state laws have been changed so that an LLC can have an unlimited lifespan.
What Is the Difference Between a "Member" and a "Manager" of an LLC?
A member is a part or sole owner in an LLC entity, similar to a shareholder in a corporation. Members can choose a manager to operate the LLC, and their position is equivalent to the director of a corporation. A manager also can be a member.
Does an LLC Have to Hold Meetings?
An LLC doesn't have to hold meetings, except when the LLC's operating agreement requires one.
Due to the simple operating procedures of an LLC, there is a smaller chance that members will break the law by accident. This is why an LLC is a favorite form of legal entity for small businesses.
How Much Will It Cost to Form and Operate an LLC?
It depends on the state's annual fee for keeping an LLC. Also, many states are requesting that a one-page form be submitted as an annual report or statement of information, which may cost a small fee.
There are states that have state taxes. Annual taxes for LLCs that are treated as partnerships are established according to the LLC's total income, with the minimum being $25 and the maximum being $4,500. Since state taxes vary, it is best to get in touch with a local accountant.
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