An LLC? What’s the point?
As a business owner, it is not a requirement to form a business entity with your local Secretary of State. However, one of the pros to creating a business entity is protection against personal liability. An owner can form several different business entities such as Sole-Propriety, LLC, Partnership, S-Corp, or Corporation. This article will focus on the purpose of an LLC and an overview of how to form an LLC.
A Limited Liability Company, aka LLC, is designed to protect the business owner from personal liability of the company’s debts. LLCs are made up of managers and members. Individuals who live outside the state or country, other LLCs, Corporations, Pension Plans, and Trusts can serve as LLC owners in most states.
If you choose to file as an LLC, you will file Articles of Organization with the Secretary of State’s office where the business will be established. The Articles of Organization require the official name of your business, which will become the legal name of the LLC. Before filing, search the Secretary of State database to ensure another company in the state doesn’t already have a similar name. Your filing will be rejected if your name is confused with another business.
The company’s purpose and a list of owners (called members) and their names and addresses will also have to be filed. The specific language required in Articles of Organization and related documents varies by state. Certain states require LLCs to file an official operating agreement. If you are in a State that does not require an operating agreement, note that having this document in writing gives you clarity about operating procedures and related details. Having an attorney complete or review this document is always wise.
By: Vanessa Kee
Company Contact Info:
Turnkee Property Solutions (TPS)
Phone: 984-200-8852, ask for Lynette