Creating an LLC is a quick and easy way to protect your business’s assets from personal liability claims. And, as a result, it’s a popular choice among small business owners.
However, the process of forming an LLC can feel overwhelming at times. Let an online service like ZenBusiness take some of the stress off your back and guide you through the entire process.
Articles of organization
Before you can create an LLC, you must file articles of organization with your state. The Articles of Organization act as your LLC’s charter.
In addition to a business name, the articles must contain information about how the LLC will be managed and who will receive legal notices or lawsuits on its behalf. They must also include the address of a registered agent, which will accept official mail on your behalf and forward it to the state.
The process for forming an LLC can vary by state, but in most cases, you must complete the articles of organization online or with a form available through your Secretary of State’s website. Typically, there’s a filing fee and processing time can take up to five business days.
Name Registration
Depending on the type of business you’re forming, you may need to register your business name with your state. Some states require you to file a name reservation while others simply need you to file formation documents and pay a filing fee.
If you’re creating an LLC, the name you choose for your business must be distinguishable from other businesses in your state. This is necessary for protecting your intellectual property rights, preventing legal infringement, and avoiding confusion with other business owners.
Some companies choose to have different names for their brands and product lines, which is often done to create a more distinctive name or make it easier for customers to identify them. The process of registering your business’s name and trademarks will vary by state and may require you to conduct a federal trademark search first.
Registered Agent
Every LLC has a registered agent, which receives all of the important legal documents and services of process for the company. These include tax and lawsuit notices, notifications from the state, garnishment notices, and more.
The role of the registered agent in an LLC is critical for ensuring that these messages get to the right people, which could save your business time and money in the long run.
Many busy entrepreneurs opt to hire a registered agent service so that they don’t have to deal with this task.
The best-registered agent services will provide you with a business address, privacy by default, free mail forwarding, and local corporate guides, all for a low monthly fee. They’ll also be able to handle any of your annual report filings or New York publication requirements.
EIN
When you create an LLC, you will need to obtain a federal tax ID number. This is commonly known as an EIN (employer identification number).
An EIN allows you to open a bank account, hire employees and file taxes without using your personal Social Security number. It also helps separate your business assets from your personal assets.
You can apply for an EIN online via the IRS website. This is the easiest and fastest way to get your EIN number.
Operating Agreement
An LLC operating agreement is a legal document that must be created and signed by all members of an LLC. It outlines how profits and losses are distributed, how members’ assets are protected, and other important details.
It may also describe the process for adding or removing members, as well as how a company is dissolved. It is vital to clearly define all of these aspects of the operation of an LLC, so that there are no disputes or confusion later on.
Creating an LLC operating agreement can be difficult, so it’s a good idea to work with a business attorney. They can help you write up the document and ensure that everything is properly documented.
