Getting your LLC started is a great way to separate your business from your personal finances. It also gives you a chance to set up your business bank account and get an employee identification number (EIN).
In order to start your LLC, you’ll need to file articles of organization with your state. They will include your LLC’s name, owners, and address. They may also ask you to elect whether the LLC is member-managed or manager-managed.
Articles of organization
Before you can start your LLC, you must prepare and file articles of organization. These are legal documents that create a business entity and provide limited liability protection for all members.
The process varies by state, so it’s a good idea to work with a business lawyer before you begin. They will help you understand your state’s requirements and complete all documents correctly.
To establish an llc, you must file articles of organization and have them approved by the state. The documents give the public a record of your company’s existence, its name and contact information.
The articles also include a statement of purpose, which states the reasons your LLC was formed. The statement should be clear enough to cover your LLC’s needs and future expansion plans.
Bylaws
If you want to create an llc, it’s important to have a set of bylaws in place. These legal documents are required in all states and serve as a road map for the corporation’s governance.
A well-drafted set of bylaws will also protect your business from future legal issues. They should include the official name of your company, its address and purpose.
Lastly, it’s critical to publish your LLC’s articles of organization in two designated county newspapers. This will help you establish a public presence and attract more investors to your new entity.
The articles of organization should include a description of your company’s business, the type of owner it is (member or manager), and the number of owners. The articles also need to identify the registered agent and the filer of the papers.
Operating Agreement
An operating agreement is a document that outlines how your LLC is run. It can be an excellent legal tool that helps protect your personal assets and a roadmap for events like buyouts.
It also defines the rights of each member and how much of the LLC they own, which is called their membership interest. and it includes how profits and losses are distributed among members.
A number of states require that all LLCs have an operating agreement. These include California, Delaware, Maine and Missouri.
Registered Agent
In order for a corporation or LLC to be fully operational, it needs a registered agent. This is a person or company that accepts legal notices, tax forms and other official communications from the state on behalf of an LLC.
In New York, the registered agent is a business or individual who has a physical street address somewhere in the state. This address is where legal papers will be served if your LLC is ever sued.
A registered agent may be a small business owner, a lawyer or a third-party company. They can provide your business with a New York street address, help you keep your information off public record and forward any mail or service of process received on your behalf to you.
Registered agents can be an invaluable resource for your business, but choosing the right one for your company requires some thought. Whether you want to be your own registered agent or use a professional service, understanding the legal requirements is critical.
Taxes
The tax liability of a limited liability company (LLC) depends on its tax classification, the owner’s state of residence, and how the business is run. This is why it’s important to hire a certified accountant or tax professional who knows how to reduce your LLC taxes.
For example, some LLCs choose to be taxed as a corporation or S corporation to save high-income owners money on federal income taxes. This choice is made by completing IRS Form 8832, Entity Classification Election.
Whether an LLC pays taxes on profits it keeps or distributes is also determined by its owner’s state of residence. For single-member LLCs, they can elect to be taxed as a sole proprietorship, partnership, or C Corporation; multi-member LLCs can select an S Corporation status for federal income taxes.