It can be exciting when your company is growing and expanding. It is especially satisfying to see the results of all the long hours you put in as well as the effort. However, growth and expansion bring with them new requirements and needs for your company. It might be time to think about establishing a Limited Liability Company if you are currently a sole proprietorship or general partnership. For many business owners, the transition to an LLC is a logical one because you can effectively protect your company’s and your personal finances as you venture into new horizons. Keep reading to learn about how Corporation Center can assist you if you’re unsure how to start a Limited Liability Company.
How Does a Limited Liability Company (LLP) Work?
Similarly to an LLP, in a Limited Liability Company, there must be a minimum of two participants, and each partner has specific authority only. An LLC prohibits members from being held accountable for the actions of other members, just like a corporation. This basically means that, except for failings resulting from “breach of contract,” LLP members are shielded from financial losses. This sets LLP apart from other corporate structures.
What Are The Benefits Of Setting Up An LLC?
You can benefit from a limited liability legal protection system that is offered from the start. This means that you can protect your personal assets (savings accounts, homes, and another real estate) from lawsuits and bankruptcy. The Internal Revenue Service (IRS) views an LLC as a “pass-through” entity, which means that profits earned by your business are not taxed until they are distributed to your LLC’s members. Additionally, LLCs also have flexible management practices and minimal reporting requirements.
Starting a Limited Liability Company: How to Do It
It takes a lot of planning and effort to launch your own LLC. You should first create a business plan that ensures the sustainability of your company. What service or product are you providing? Who are your typical clients or customers? Do you have a unique and marketable product and company name? While it might seem like a lot, there’s a good chance you already have all of these questions sorted by now.
You should also decide in which state you will start your limited liability company as a starting point. Typically, it makes the most sense to establish your LLC in the state where the majority of your business will be conducted. However, in some circumstances, you may choose to form your LLC somewhere else. Going this route may require you to meet foreign LLC requirements, but depending on the nature of your company, it might make financial sense.
Providing The Appropriate Documentation.
When you have a basic business strategy in place, you can start the registration process for your LLC. Your state may have different requirements, but the document you must complete is frequently referred to as “Articles of Organization.” The information on this document should include your company’s name, the names of your LLC’s members, the name of your registered agent (the person in charge of receiving legal correspondence), and your company’s mailing address.
When this form is finished, you can submit it to the appropriate state office. Although LLCs are legal in all 50 states, there are different rules in each one. Before filing your documentation, you should confirm the state’s compliance requirements. You can start drafting your Certificate of Formation once you have all of your information ready. As stated before, these are also known as “articles of organization” in some states. Your Secretary of State’s office will register your LLC using this form. Although each state has its own regulations, you should generally be prepared to offer some fundamental information about your company, including its name, address, members, and registered agent.
You can process this document online by working with a private service like Corporation Center. We provide simple web forms that you can fill out quickly and an SSL-encrypted web portal so you can submit your Certificate of Formation quickly and securely. Please call us or send an email if you want to learn more.
Creating an LLC Online with Our Assistance
There will be paperwork to complete once the specific details of how your LLC will operate and who the members will be have been worked out. You must submit what are known as “Articles of Organization” to the Secretary of State’s office in the majority of states. The name of your business, its mailing and physical addresses, the names and positions of its members, and the contact information for the registered agent are all requested in this document. Again, the exact documents will depend on the state, but generally speaking, you can anticipate giving some basic information about your company.
Starting a Limited Liability Company online is simple with Corporation Center. We provide simple-to-use online forms for forming LLCs in each of the 50 states. We can also assist you with the formation of an S-or C-corp if your needs for business structure go beyond that. Visit our FAQs page or get in touch with us today to learn more.