When putting up a limited liability company, you need to file an “Articles of Organization” with the state government. This document contains all the basic information of your company. It will also serve as a charter and a registration form stating that you wish to put up an LLC in your locality.
Know where to file your LLC
Articles of Organizations are often filed to the Secretary of State’s office. However, in some states, this document is submitted to another government office. Be guided on how to file your LLC online by hiring an accountant. If you prefer to do it alone, you can download the necessary forms from your government’s website.
Discuss and Fill out the necessary information
Once you have downloaded the form, you and the other members should discuss and fill out the necessary information for your LLC.
- Name of the business model. State governments require you and the members to add LLC in the name of your business model
- Members of the LLC. Members must indicate their addresses in the Article of Organization
- Address of the company. Members of the LLC have to use a street address rather than addressing it to a PO Box.
Decide who is the registered agent
The registered agent plays an important role in LLC. He/she is the representative of the LLC. The registered agent will handle tax and legal documents. LLCs and S-Corps both have single taxation process and are handled by agents. The registered agent can be a member of the LLC. You can also have a non-member registered, but the agent should be a part of a state-registered agency.
Purpose and Duration of the LLC
State the purpose and the duration of your LLC in the document. State governments are not strict on the purpose and the duration. However, this can also help your company in the long run.
Management of the Business model
In this part of the document, you and the other members need to discuss who will be the manager of the LLC. In some cases, the members will fill out whether the company is manager-managed or member-management. LLCs are usually member-managed. It means that all the members will share the responsibility of managing and running the LLC. If the members decide to have manager-managed, they will elect one person from the members to manage the daily operations.
Describe the nature of the business
Lastly, make sure to write down the nature of the business. Members must write down a brief description of the business models that they have planned. The members also have to describe the activities of the employees on a daily basis.
Some states have a corresponding fee for filing Articles of Organizations. Once the fees are settled and the documents are signed, your LLC is now officially registered in your locality.
When opening a Limited Liability Company, make sure that you consult with a corporate lawyer or an accountant. In that way, you will have a guide on how to put up your LLC formally.