Things You Should Know Before Setting Up An LLC For Your Business - Part 2

 

An LLC, or limited liability company, is a popular type of business entity. Many small business owners choose this type of business structure. An LLC is a business structure that has similar features to both corporations and partnerships.

 

One of the main reasons business owners like LLCs is because of the liability protection they offer. This means that the personal assets of LLC owners, often called “members," are usually safe if the business runs into debt or legal troubles. It's different from a sole proprietorship, where the owner is personally liable for the business's debts.

 

This 5 part series of articles will provide a basic overview of things you need to know before setting up an LLC for your business venture:

 

• Overview of a Limited Liability Company (LLC)
• How to set up an LLC
• How to set up an LLC business bank account
• Business license requirements to operate an LLC
• LLCs and pass-through taxation

 

Part 1 addressed Overview of a Limited Liability Company (LLC). Part 2 addresses How to set up an LLC. Part 3 will address How to set up an LLC business bank account. Part 4 will address Business license requirements to operate an LLC. Part 5 will address LLCs and pass-through taxation.

 

How to set up an LLC

 

Starting an LLC is a relatively straightforward process. However, it requires careful attention to ensure compliance with state law. Each state has its own laws surrounding how to start an LLC. Follow these steps to get started:

 

• Choose an LLC name: Your LLC name should be unique and not too similar to existing business names. Often, you must include an abbreviation like “LLC" or “L.L.C." in the name. Other states require you to have the words “Limited Liability Company" in full in the title.
• Select a registered agent: Your registered agent is responsible for receiving legal documents, like service of process, on behalf of your LLC. This can be an individual or a business. They must have a physical address in the state where you're forming the LLC. Some businesses use a registered agent service for this role.
• File Articles of Organization with the Secretary of State: This is the primary document needed to officially form your LLC. It's submitted to the Secretary of State's office, along with a filing fee. The form might ask for basic information like the business's purpose. It might ask what type of management structure the business will have. It will also include the registered agent's details.
• Obtain an Employer Identification Number (EIN): This number is provided by the Internal Revenue Service (IRS). It is essential for tax information. It's also necessary if you plan to hire employees for your business.
• Set up an LLC operating agreement: Operating agreements are not always required by state law. This internal document outlines the rules for how the LLC will run. It covers areas like the management structure, how profits and losses are shared among LLC members, and procedures for adding or removing members.
• Note that for an LLC, you typically file an Articles of Organization instead of an Articles of Incorporation. The latter is used for the formation of corporations. Both documents serve a similar purpose: they officially register the business entity with the state.

 

Remember, each state might have its nuances when it comes to maintaining an LLC. Always refer to your state's specific requirements or consult a business attorney to ensure you're on the right track.

 

Call your Amarillo Business Attorney Today and Get Help Setting Up The Legal Structure For Your Business

 

Starting an LLC involves a few steps. It is possible to do this on your own, but getting advice from a business attorney can be very beneficial. They can guide you through formation documents and help you understand concepts like the franchise tax. They can also discuss the difference between important aspects like a manager-managed and member-managed LLC.

 

If your business is a nonprofit or if you have complex questions, an attorney's expertise can be invaluable. Every state has different laws regarding the formation of an LLC. Understanding the basics and seeking help from a legal professional when you need it can save you time and money later down the road. A business attorney in your area can help you with matters such as how to name your LLC, assistance with drafting a buyout agreement, understanding the tax implications of your LLC, and more.

 

Choosing a legal entity for your business takes research and effort to ensure you are complying with the laws. You may want to hire a business attorney to assist you with the more challenging aspects of small business formation, such as drafting and filing documents and complying with local laws. Whether you find yourself grappling with a business debt liability issue or just need some guidance on whether to go with a sole proprietorship, a local attorney experienced in business organization can help. Many people have similar questions and go through the same line of questioning when deciding how to set up a new business. It can be and often is critical that you get legal help understanding the basics of this process. The best way to get this understanding is to contact an experienced Amarillo Business Attorney near you. Stop and take a breath and call an Amarillo Business Attorney who has had decades of experience.  Pick up the phone and call Amarillo Business Attorney Bill Cornett.  Bill is your choice as an experienced business attorney in Amarillo and the Texas Panhandle.  Don’t waste another minute.  Call him today.

 

Your most important action may end up being the phone call that you make to your Amarillo Business  attorney.  In the Texas Panhandle that call should be to Amarillo attorney Bill Cornett.  Contact the Law Office of Bill Cornett. Be smart…remember these phone numbers (806) 374-9498 or (800) 658-6618.

 

Put Cornett Law Firm’s 50+ years of experience to work for you

 

Bill Cornett, Amarillo Attorney, with Cornett Law Firm, offers affordable, qualified services as an experienced personal injury lawyer and probate attorney. Bill also has experience in estate planning and agriculture law. Sit down with Bill at his office located at 612 S. Van Buren St. in Amarillo TX by calling (806) 374-9498 or (800) 658-6618 TODAY to schedule a free consultation.