LLC Paperwork: Everything You Need to Know
LLC paperwork is the documentation that needs to be completed and filed for an individual to start a limited liability company (LLC).3 min read
What Is LLC Paperwork?
LLC paperwork is the documentation that needs to be completed and filed for an individual to start a limited liability company (LLC).
Limited Liability Company
An LLC or limited liability company 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.
Choosing a Name for Your LLC
When you go to choose the LLC name, you need one that is available and that complies with the rules and laws set up in the state rules for LLCs. 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
Finding and designating the registered agent is the next step. This individual is someone who has legal authority when it comes to receiving, filing, and executing documents. Tax and legal documents are the ones that the individual will be in charge of. 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
Once the name is considered and the registered agent is located, you will need to draft the articles of organization. This is 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, they are 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
You should know that there is one disadvantage to filing your LLC paperwork. You will need to pay a fee, and this will vary depending on the state you live in. Many states have modest fees that are around $100. Some states have larger fees, like California. This state charges $800 for the filing of the articles of organization paperwork.
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.
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