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.
During forming an LLC company, you'll find specific information is required from you by the state. Each state has its particular 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 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. The general-purpose business is one where the owner does not mention the exact business but confirms that the business is not operating outside the law. However, some states require more detail about the company's activities and its purpose – and this is called a specific business purpose. Here, a detailed description of the types of products or services provided needs mentioning.
- The Registered Agent. During the formation of a business, having a Registered Agent is mandatory for all corporations and LLCs. They deal 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 regular 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 essential documents require professional handling. The Registered Agent also saves them from disclosing their 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.
- 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 company's management. When the owners themselves are responsible for the LLC management, 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 significant 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, their names and addresses must be included in the formation document. 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.