LLC Information: Everything You Need to Know
Knowing important LLC information will help when forming one3 min read
2. Rules for an LLC
3. Filing of LLC Certificate of Organization
4. Filing of LLC Amendments
Knowing important LLC information will help when forming one. There are several steps to follow to make sure it's done correctly. The first part is choosing a name for the LLC that is line with all rules of the state LLC's division, a part of the corporation division of the Secretary of State's office. There are different name requirements in each state, but the following are typical.
Naming an LLC
The name must have one of the following words at the end of it:
- Limited Company
- Limited Liability Company
- Ltd. Liability Co.
The name can't have specific words in it, as governed by the state. These include corporation, bank, city, or insurance. The LLC office can tell businesses how to find out if the proposed name can be used. For a small fee, the name can often be reserved for a short time until the Articles of Organization are filed.
The chosen name can't violate the trademark of another company. Once a legal, available name is found, it won't need to be registered: this will be done when the Articles of Organization is filed. The filing fee in most states is around $100. However, some states, such as California, charge $800 each year on top of the filing fee.
Most people can prepare their own Articles of Organization in only a few minutes. They just need to fill in any blanks and check the appropriate boxes on the form from the state's filing office. The following must be provided:
- LLC's address
- LLC's name
- Names of all the owners
The owners can all prepare and sign the document, or they can assign one member to do that. The name and address of the registered agent will also need to be listed. This is often one of the members of the LLC.
Rules for an LLC
The rules for operation and ownership are set out in the LLC operating agreement and are similar to the operating agreement. There are several factors often listed in the operating agreement. These include the rights and responsibilities of the members, their percentage of interest in the company, rules they have for taking votes and scheduling meetings, how the profits or losses get allocated, the voting power of the members, and what happens if a member wants to sell their interest or dies.
In certain states, it's necessary to take extra steps before the company becomes official. A notice will need to be published in a newspaper that's local stating the intention of starting an LLC.
The notice will need to be published several times over a certain amount of weeks, after which an "affidavit of publication" must be submitted to the LLC filing office. The newspaper can help the company with the filing. After these steps are complete, the LLC is considered official. Permits and licenses will need to be obtained before the doors are open so they can be displayed to the public.
Filing of LLC Certificate of Organization
The LLC's members need to file a certificate of organization if they wish to form a domestic LLC. This certificate must state the name of the limited liability company and the federal employer identification number. The street address of the office where the LLC's records will be kept must be listed.
The certificate of organization must also include the business' purpose, the name and address of every member, and if a professional service will be rendered by the LLC. The most current date of dissolution must also be listed. The agent's name and business address will need to be included as well as their legal consent.
The name and address of the business needs to be listed if it's not the same as the office location. The same needs to be included for the manager. The person that creates the LLC needs to sign the certificate. It costs $500 to file a certificate of registration.
Filing of LLC Amendments
The LLC must change their certificate of organization in order to show any change of managers in the company. They also must amend the certificate if managers are assigned when there were none before.
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