For more complex situations such as LLCs with multiple owners, hiring an experienced attorney may be well worth the expense. And there are plenty of free templates online to get you started. Even solo business owners benefit from outlining the details in writing.Ĭrafting your own operating agreement is one option, especially for single-member LLCs. LLCs with more than one member or partner will want to create one to ensure everyone agrees on their rights and responsibilities. Many states don’t require an operating agreement, but that doesn’t mean you don’t need to craft one. In essence, it should contain all relevant information pertaining to the operations of your LLC. More specifically, it can include how profits will be distributed, how members leave the LLC and who contributes capital for the business. Create an Operating AgreementĪn operating agreement contains the details of the financial, legal and management rights of all members of the LLC. Use it for other necessary tasks such as setting up a business bank account and getting a tax ID number. When your formation documents are approved, you’ll be issued a certificate by the state to indicate your LLC is formally registered. You’ll also need to pay a filing fee, which varies depending on the state where you’re forming your business. File the Articles of OrganizationĬheck your articles of organization carefully before submitting them to your state. This step must be completed before filing the articles of organization. Some states, such as Nebraska and New York, require you to publish a notice in the newspaper indicating your desire to register your LLC. Once these steps are complete, one or more business owners or organizers will need to sign the form. Contact information for the registered agent (and in some states, the agent’s signature).The address of your principal place of business.Basic information you’ll need to provide includes: Prepare the LLC Articles of Organization FormĮach state lists its specific requirements and procedures for those trying to form an LLC. To find your state’s form, go to the same website you used for business name research. In most states, this document is called the articles of organization, but some states use a different name, such as a certificate of formation. To establish your LLC as a legal entity, you’ll file a document with the state agency that handles business filings in your state. Get a Copy of Your State’s LLC Articles of Organization Form If you are not as knowledgeable about local laws and believe you would struggle to manage this type of paperwork, acting as your own agent may not be best, even if the goal is to save money.Ĭarefully consider your options and perhaps even consult with a lawyer or professional agency before becoming your LLC’s registered agent. You must receive and handle crucial legal documents or notices as your LLC’s registered agent. If you decide to act as your LLC’s registered agent, you should know that your name and address will soon become a matter of public record. However, the availability of this option doesn’t automatically make it suitable for everyone. You can legally act as your registered agent in every state. This will come at a fee, of course pricing for registered agents may cost more than a hundred dollars per year. You can also designate a company that provides registered agent services. However, the agent must be available at an address within your state during normal business hours. Once received, the registered agent then passes on these documents to the LLC.Īnyone who is at least 18 years old can be a registered agent-and you’re allowed to name yourself or an employee. A registered agent is someone who receives official or legal documents (such as subpoenas) on behalf of the LLC. Designate a Registered AgentĮvery state requires LLCs to have a registered agent. You can review your state’s LLC naming requirements and find out if the name you want is available by visiting the website of the state agency responsible for business filings (usually the Secretary of State) and doing a name search. And you’ll probably need to include some version of “LLC” or “limited liability company” at the end of your business name. Most states also prohibit certain words that might imply you’re in a certain business, such as insurance or banking. In general, state laws won’t allow you to choose a business name that’s already being used by another business in your state. And while it’s important to choose the right name for branding purposes, your business name must also meet state law requirements. Marketing may be at the top of your mind as you consider names for your business. Browse our state LLC formation guides for information specific to your state. Note that there are differences in laws and processes from state to state. Use this seven-step guide to start an LLC today.
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