Limited Liability Corporations are a non-corporate form of business in which the owners actively take part in the management. They are protected against personal liability in case of organizational debts and obligations.
Individual state law governs the creation of any LLC. Members are required to file documents with the Secretary of State. Many states require the filing of articles of organization. The LLC usually starts functioning on the same day that the articles of organization are filed. A filing fee is paid to the Secretary of State. Members have to be careful regarding the various costs that are incurred during the formation and registration of the LLC, to avoid paying repetitive costs and/or fees.
These costs include the agent’s fee, if any, and the initial incorporation fee. Every time a new member is registered, a fee has to be paid. There are many companies that help people with the process of formation of the LLC. Those who opt to create these companies have to pay for a certified copy of incorporation articles, corporate record book, senior and junior executive service, phone service and mail forwarding. In addition to these, other costs include bank account assistance, supporting office inquiry services and rush services.
The minimum amount of information required for articles of organization may vary from state to state. Usually, it states the name of the LLC and the person organizing the LLC. The duration of the LLC and the registered agent’s name is also included. Some states require extra information, such as the business purpose and particulars about the LLC membership and management construction.
To legally complete the formation of the LLC, members have to enter into an Operating Agreement. This Operating Agreement may come into existence before or after filing of the Articles of Organization. It may be in writing or oral.