Documents Needed to Form an LLC
A limited liability company (LLC) is a business structure that protects the owner from personal liability for any company debts. Additionally, an LLC provides business owners with few government restrictions and tax advantages.
With an LLC, owners enjoy the flexibility of a sole proprietorship while reaping the benefits of limited liability of a corporation. It’s the best of both worlds for many owners, but the process can often become long and stressful if not handled properly.
It’s easy to decide that you want to take your business to the next level and form an LLC, however there are tedious steps you must take to properly form the LLCS.
What documents do you need to create an LLC? How long do you have to submit the forms for an LLC? Let’s discuss the details!
Standard Documents Needed
to Create an LLC
What forms do you need to start an LLC? Honestly, there are quite a few. However, it’s not as difficult to form an LLC as many people think it is. There are some basic forms and paperwork that must be filled out and filed correctly. Here are the main documents you need to be aware of:
Articles of Organization – Known as the birth certificate for your business, the Articles of Organization contains vital information such as the businesses name, address, purpose, management structure, registered agent, and duration of the LLC.
Operating Agreement – The important document states the rights and duties of all members. It also outlines the distribution of income for all members. An Operating Agreement will specify what happens if an owner dies and how the LLC can be dissolved without causing legal matters.
Resolution to Open a Bank Account – Many LLCs Operating Agreements do not mention the ability for members to open an LLC bank account. Even if it does, most banks want to see the resolution granting you the power to open a bank account in the name of the LLC.
Operating Manual – This document is for a small business that may turn big one day. It shares the dynamics of the workplace, employees’ roles, who holds responsibility for the company, a plan of action in case of emergency, and more depending on the nature of your business.
Resignation of Organizer – Also called The Statement of Organizer formally relieves the organizer of the LLC of their duties and assigns the ownership over to the other members.
Certificate of Good Standing – This document shows the state that you’re legally registered and is proof that you’re authorized to do business.
Transfer of Membership Interest Testament – If the owner wants to transfer their interest to another member or person, this is the document that lays out the details.
LLC Forms that need to be submitted to the Secretary of State
If you’re forming an LLC, then you’ve probably heard of the Secretary of State because it’s the government office that helps you actually start a business. At a state level, this government office acts as a record keeper for many documents. The documents you need to submit to the Secretary of State are”
- Article Amendments
- Trade Name
- Address Update
- Change of Registered Agent
- Annual Reports & Reinstatements
- Entity Conversions
- Articles of Continuance
This agency is very important to the formation of your LLC because it provides the tools you need to get your business up and running.
Other Documents needed to Start an LLC
After going through the essential steps of choosing a business name, naming a registered agent, and paying start up fees, there are a few other documents that you need to actually get your business off the ground. These documents include:
Business License – When forming an LLC, you’re not required to have a business license. However, to start a business you need a business license. This is tricky because it depends on the state in which you form the LLC and the type of business you plan to operate.
EIN/SS4 – this form is used to apply for a federal tax ID number. The IRS assigns these numbers to businesses for tax-filing and reporting purposes. EINs are required for all businesses even if there are not any employees.
Resellers Certificate – This document allows businesses to resell purchased goods from a vendor without paying sales tax.
While it seems like a lot of documents are required to form an LLC, the benefits are undeniable. When you properly form an LLC, you receive limited liability to protect your personal assets both legally and financially. You also receive pass-through income which generally lowers taxes for your business.
If you want to ensure these forms are filled out and filed correctly, it’s best to work with a business lawyer. Trying to manage a business and ensure all documentation is correct is stressful. And these are all forms that you do not want to overlook or give incorrect or inaccurate information.