During the process of forming an LLC company, you’ll find certain information is required from you by the state. Each state
has its specific requirements,
and there may be differences between states concerning the level of fees or type of documents required.
Knowing the basics that are needed in most states could save you a great deal of time and money
later when you submit your documents.
The the basic LLC requirements:
- The name of the company. LLC formation documents require you to list the chosen name of your
company. You can choose the name of your business yourself, but it is necessary to check for the availability of the name first,
as trying to form a company with the same name as an already established business could be prohibited (and the company itself
could take legal action against you). The name you eventually choose will usually end with the suffix “LLC” or “Limited Liability
Company”. The state is responsible
for finalizing your chosen name after thoroughly checking for any deceptive similarity with some existing LLC.
- The purpose of your business. It’s necessary with most of the U.S. states to mention the
exact purpose of your business. Basically there are two types of businesses that the state wants you to include in the document
of formation - general and specific. The general-purpose business is one where the owner does not mention what the exact business
is, but confirms that the business is not operating outside the law. However, some states require more detail about the activities
of the company and its purpose – and this is called specific
business purpose. Here, an elaborate description of the types of products or service provided need mentioning.
- The details of a Registered Agent. During the formation of a business, having a Registered
Agent is mandatory for all corporations and LLCs. He or she is the one who deals with all the legal and tax documents – and
he or she must have a physical address in the state in which you’re hoping to form your company – and it’s also expected that
he or she should be available during normal working hours. He or she receives the documents ranging from notice of litigation,
mail from the state, and tax related documents, from the state’s tax department. The physical address of the registered agent
is a matter of public record. Even for smaller businesses, their
important documents require professional handling. This also saves them from disclosing their own address to marketing companies.
- The Organizer. He or she is the link between the state and your business (LLC). He
or she handles matters concerning the preparation and filing of the articles of
organization with the state. His or her name, address and signature are very important inclusions on the documents.
- The structure of management. Members or managers manage the LLCs. It is compulsory
to mention in the articles of organization which group will handle the management of the company. When the owners
themselves are responsible for the management of the LLC, it sounds more like a general partnership. However, when
managers handle it, the LLC resembles a corporation. Here the managers are not involved in day-to-day activities
of the company but are responsible for the final
and major decisions – and their names and addresses must be included in the final document of formation.
- The members or managers. If the members manage the LLC, it’s necessary that their
addresses are included in the document of formation. Similarly managers’ names and addresses also need to be included.
- The principal address of the company. In some of the states it’s mandatory to
include the legal or principal address of the business.