Setting up any limited liability company (LLC) is as easy as compare to any other thing. There are few necessary documents which need to be passed in order to set up the business and there is also some simple process to be involved. But it is necessary to understand the process which is involved in how to start an LLC Company and you should know first what the features of such company are.
What is Limited Liability Company or LLC means?
A limited liability company is one of such business structures in which you will find a combination of partnership and corporation features. It has also the legal protection of owner’s personal assets and creditors cannot pursue them during bankruptcy like corporations. Aside from the protection of assets, the LLC can also enjoy tax and operational benefits from the partnerships. This means that there is only one level of taxation unlike in corporations where the company can be taxed at a certain business level and the shareholders are also taxed for their dividends.
Requirements for Starting an LLC Company:
Although the LLC Company is a hybrid business structure but establishing one such kind of business is very easy. Only a law required passing a document by the company but there may be some other requirements depending on the state of the country where the business will be established. The main document that is required for every state of business is the Articles of Organization.
What are the Articles of Organization?
This is the basic and main document of the company. Some states may call this document as a “certificate of formation” or “certificate of organization”. All the important information about the company which is going to form is stated in this document including business name, duration of the business, owners of the business, name of the registered agent and purpose of the company, corresponding address and manager’s name and address where applicable and needed.
There is a filling fee for the Articles of the Organization and this price depends and varies according to the states. There may be some other fees included in this which will again vary as per the state so it is best to consult first the LLC filing office before processing the document.
However, this document is not required by the law but may be required by some states. This document is mainly indicates how the company will be managed and what would be organizational structure of the LLC. It is really important to have this document before starting the company in order to avoid any confusion within the organization. The agreement sets out the rules for the ownership of the company which is including the members responsibilities and rights, management of the organization, percentage interest in the business, allocation of profit and losses and any such provisions like buy-sell in case of member dies or becomes disabled or leave the company.
So, with all such above important documents with you, it is not so hard to form an LLC company for your business.