The Importance of Legal Documents in Forming an LLC
Just because you are not a lawyer, it doesn’t mean you can’t learn how to form an LLC. A limited liability company may sound it has a complicated structure, it is actually the opposite. The LLC was made for investors who don’t want the hassle of a corporation. It became popular in the US because an LLC could be set up in just days.
One of the advantages of the LLC is that the members are considered safe from anything that happens to the company. This is one important feature of an LLC, its limited liability. An example is if the company will file for bankruptcy, usually in a corporation, the shareholders will have to pay also. In a limited liability company, the members of the company are exempted or not liable.
In order to start filing for an LLC, you have to prepare your legal documents. Limited liability documents can include the Operating Agreement. It is a document that is different in every state. It is like the corporate by laws of the company. It will declare to the state and public the type of structure the LLC has. It is also an agreement between the owner and the members of the LLC. Some of the contents in an LLC include the tax, duties, member interests, profit sharing and rights or powers. If the company doesn’t have an operating agreement, the State laws can be used instead.
Next are the articles of organization. The articles of organization contain the introduction of the LLC. It should also give information of the members of the LLC. It is almost like the certificate of organization. It will also list down the state requirements and check if the LLC follows them.
A limited liability company is the best company for beginners. There aren’t many rules needed in creating one. You just have to learn how to incorporate some techniques in running a corporation and you are all set to run a successful LLC.
One of the advantages of the LLC is that the members are considered safe from anything that happens to the company. This is one important feature of an LLC, its limited liability. An example is if the company will file for bankruptcy, usually in a corporation, the shareholders will have to pay also. In a limited liability company, the members of the company are exempted or not liable.
In order to start filing for an LLC, you have to prepare your legal documents. Limited liability documents can include the Operating Agreement. It is a document that is different in every state. It is like the corporate by laws of the company. It will declare to the state and public the type of structure the LLC has. It is also an agreement between the owner and the members of the LLC. Some of the contents in an LLC include the tax, duties, member interests, profit sharing and rights or powers. If the company doesn’t have an operating agreement, the State laws can be used instead.
Next are the articles of organization. The articles of organization contain the introduction of the LLC. It should also give information of the members of the LLC. It is almost like the certificate of organization. It will also list down the state requirements and check if the LLC follows them.
A limited liability company is the best company for beginners. There aren’t many rules needed in creating one. You just have to learn how to incorporate some techniques in running a corporation and you are all set to run a successful LLC.
