How to Form a Limited Liability Company
You are ready to start your new business and you have done your research into various forms of business organization. You have decided that your business needs to be a Limited Liability Company (LLC). Here is the information you need to form a limited liability company.
- What is a Limited Liability Company?
A Limited Liability Company (LLC) is not a corporation. It is a "pass-through" organization which is run in many ways like a partnership but which offers liability protection to its owners (called "members").
- How Do I Form a Limited Liability Company?
To form a limited liability company, you create Articles of Organization, which describes the name of the company, its address, the purpose of the business, the names of the Members, and the Registered Agent.
- Do I Need an Attorney?
You can form a limited liability company without an attorney, by filing the Articles of Organization with your state, but you should have an attorney help you prepare the Operating Agreement of the LLC.
- After the limited liability company is Formed, what are the Record keeping Requirements?
Like a corporation, minutes need to be kept of meetings of the limited liability company. You may also have to file periodic reports with your state Secretary of State
- What is the Cost of Forming an LLC?
You will need to pay a fee for filing your Articles of Organization, usually between $50 and $200. If you have an attorney do this filing, it can cost you an additional $500 or more. If the attorney prepares the Operating Agreement, that will be another cost, probably $1000 or more.
- If I File Articles of Organization, Do I Also Need to Register the limited liability company's Name?
In most states, the registration of the LLC also serves to register the name. Check with your state Secretary of State to be sure.
