Key Takeaways

  • Forming an LLC requires several key documents to ensure legal compliance and effective operation.
  • The core LLC required documents typically include the Articles of Organization, Operating Agreement, and EIN application.
  • Additional documentation may be necessary depending on the state and nature of the business, including publication notices, banking resolutions, and initial resolutions.
  • Maintaining proper internal records, such as membership certificates and cap tables, supports business operations and investor relations.
  • Certain tax forms like IRS Form 8832 (Entity Classification Election) or Form 2553 (S Corporation Election) may be needed depending on tax treatment.

LLC paperwork is the documentation that needs to be completed and filed for an individual to start a limited liability company (LLC).

What Is a Limited Liability Company?

An LLC is a business that is a cross between a corporation and a partnership. The business basically retains many of the advantages of both of these types of businesses. The LLC is formed under the laws of the state where the business operates and it is registered and typically the Secretary of State is the individual who allows for the registration of the LLC.

This LLC must register with the IRS and it also must obtain permits and licenses that allow the business to run legally as an entity in the state.

How Do You Form a Limited Liability Company?

Forming an LLC is actually a lot easier than some individuals think it is. There are some basic steps that must be taken to create a legal LLC entity. These steps start with choosing a business name, locating an individual who can become a registered agent, filing articles of corporation papers, providing fees, giving information on the business and members, and filling out forms to get the needed licenses to actually run the business.

What Are the Steps to Form an LLC?

Follow this procedure to create a new LLC.

  • Choose a name for your LLC that complies with the rules and laws in your state. One of the simpler rules is to make sure that the LLC name differs from other limited liability companies that are already registered and on file with the state.
  • Assign a registered agent who has legal authority when it comes to receiving, filing, and executing tax and legal documents on behalf of your business. These are the papers that your LLC specifically receives through a processor. Agents do not need to be business owners. However, they will need to live in the state where you are starting your LLC and they should have an office in the state as well. If you do not want to appoint an individual, there are services available that you can invest in.
  • File Articles of Organization. This is a document that outlines all the information of your LLC. Some states call the papers a certificate of organization or a certificate of formation. The document is relatively short and simple. However, it is incredibly important when it comes to starting your LLC. The paperwork needs to be prepared and then filed with the Secretary of State filing office. The articles of organization paperwork can typically be found online and filled out in a few minutes by adding information into the provided blanks. However, before you fill out the documents, you should look at the requirements in your state for forming the LLC. This information can be found on your state government's website as well. When you are ready to fill out the documents, fill in the LLC name, the names of members, the registered agent, the address, and the financial contributions of all the members.
  • Submit filing fees, which vary by state. In most states, it's around $100, but some states charge more. For example, the LLC filing fee in California is $800.
  • Create an LLC operating agreement. When you file your original paperwork, you should think about also drafting an operating agreement. This is something that is not required, but it outlines the rules of the business according to your own vision. It also states how you want the business to operate in terms of members and their responsibilities. While the document is not essential for starting your LLC, it is helpful to organize your vision for your entity in one place.
  • Obtain business licenses and permits as required by your location and industry. Common documents you may need include a federal employer ID number, a zoning permit, a seller's permit, and a tax registration certificate. The more heavily your industry is regulated at the local, state, and federal levels, the more likely it is that you will need additional permits and licenses to legally operate.

In addition to these basic steps, a few states require you to publish a notice of your LLC formation in local newspapers as designated by the Secretary of State. This must be done before you file the articles of organization.

Keep in mind that if you plan to do business in a state other than where your LLC was formed, you'll need to register in that state as a foreign entity and obtain the necessary licenses and permits.

Essential LLC Required Documents

When forming a limited liability company, preparing and filing the proper documentation is crucial for both legal compliance and business operations. Below are the key LLC required documents that are typically necessary:

1. Articles of Organization

The Articles of Organization, sometimes called a Certificate of Formation or Certificate of Organization depending on the state, is the primary document used to officially register your LLC with the state government. It usually includes:

  • LLC name
  • Business purpose
  • Registered agent information
  • Member or manager details
  • Principal business address

2. Operating Agreement

While not always legally required by the state, an Operating Agreement is highly recommended. This internal document outlines:

  • Ownership percentages
  • Member roles and responsibilities
  • Procedures for adding or removing members
  • Profit and loss allocations
  • Voting rights and decision-making processes
  • Dissolution procedures

An Operating Agreement helps prevent disputes between members and provides a clear framework for governance.

3. Employer Identification Number (EIN)

An EIN, also known as a Federal Tax Identification Number, is issued by the IRS. It is required for:

  • Opening business bank accounts
  • Hiring employees
  • Filing federal taxes
  • Certain state tax registrations

You can apply for an EIN online through the IRS website at no cost.

4. Initial Resolutions and Banking Resolution

Initial resolutions are formal documents adopted by the LLC members or managers that authorize specific actions, such as:

  • Opening a business bank account
  • Approving the Operating Agreement
  • Electing officers (if applicable)
  • Approving contracts or financing arrangements

A banking resolution is often required by financial institutions to confirm who has authority to act on behalf of the LLC regarding banking matters.

5. Publication Requirement (If Applicable)

Some states, like New York and Arizona, require newly formed LLCs to publish a notice of formation in designated local newspapers. The publication proof (affidavit of publication) must then be filed with the state.

6. Business Licenses and Permits

Depending on your industry and location, additional licenses and permits may be required. These can include:

  • General business licenses
  • Sales tax permits
  • Health department permits
  • Zoning permits

Check with local, state, and federal agencies to ensure full compliance.

How Is an LLC Taxed?

Depending on how the LLC chooses to be treated for tax purposes, either the LLC owners (known as members) or the LLC itself will be taxed at the federal, state, and local levels. You may need to complete a separate registration in your state for employment, income, and sales taxes. You might be required by the state to pay for temporary disability insurance for your employees. Even if your LLC does not have employees, you will likely need to apply for an IRS employer identification number (EIN).

Your LLC will be taxed as a sole proprietor if you are the only member and as a partnership if you have between 2 and 100 members. However, you can fill out IRS Form 8832 to opt for corporate taxation.

  • File Form 1065 if your LLC is treated as a partnership. This indicates that profits and losses will be "passed through" to the members and reported on their individual income tax returns.
  • If your LLC did business with another company totaling more than $600, you'll receive an IRS Form 1099 for that business which you will need to submit with your tax return.
  • If you need more time to submit your tax return, you can request a five-month extension using IRS Form 7004.

Additional Tax-Related Documents for LLCs

In addition to basic formation paperwork, certain tax documents may be required depending on how your LLC chooses to be taxed:

  • IRS Form 8832 (Entity Classification Election): If your LLC wants to be taxed as a corporation rather than the default sole proprietorship or partnership, you must file Form 8832 with the IRS.
  • IRS Form 2553 (Election by a Small Business Corporation): If your LLC opts for S Corporation tax treatment, you must submit Form 2553 after filing Form 8832.
  • State Tax Registrations: Many states require separate registrations for sales tax, employment taxes, or state income taxes.
  • Annual Reports or Franchise Tax Filings: Certain states require LLCs to file annual reports or pay franchise taxes to remain in good standing.

Filing the correct tax documentation ensures your LLC avoids penalties and maintains compliance with IRS and state regulations.

Frequently Asked Questions

  1. What are the mandatory documents to form an LLC?
    The primary documents include the Articles of Organization, Operating Agreement (recommended), and EIN application. Some states may also require a publication notice and business licenses.
  2. Is an Operating Agreement required for an LLC?
    While not always legally required by the state, an Operating Agreement is highly recommended as it defines ownership, management structure, and operational procedures, helping to prevent disputes.
  3. How do I obtain an EIN for my LLC?
    You can apply for an EIN directly on the IRS website at no cost. The process is simple and typically provides the number immediately upon completion.
  4. Do all LLCs need to file IRS Form 8832?
    No, Form 8832 is only required if the LLC wants to elect a tax classification other than the default (sole proprietorship for single-member LLCs or partnership for multi-member LLCs).
  5. Are there additional documents needed after forming an LLC?
    Yes, depending on your state and business activities, you may need licenses, permits, initial resolutions, banking resolutions, and ongoing compliance filings such as annual reports or franchise taxes.

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