Many young and experienced business owners may have twisted their arms to create a new company to expand their business to other states. Still, the problem is founding a traditional corporation is as difficult as nailing jelly to a tree. To shortcut the problem, we need a new form of business model; the limited liability company.
- In this text, you will get more data about;
- What is a limited liability company (LLC)
- What is an LLC attorney
- How to find an LLC attorney near me
What is a Limited Liability Company (LLC)?
A limited liability company (LLC) is the same as the “private limited company” definition, but the US version. Structurally an LLC is not a corporation under state law and is trying to provide limited liability to its owners in several jurisdictions. In summary, LLCs are a combination of pass-through taxation of a partnership and the limited ability form of a corporation.
An LLC is a hybrid in the world of companies; it seems like a corporation but has an unincorporated feature. LLCs can be organized or not-for-profit, and in many states, they need a federal certificate like a license, similarly. Note that some special LLCs (also called professional limited liability companies or PLLC) have to do more paperwork to get their official confirmation.
How to form a Limited Liability Company?
Building an LLC Can be an important step for any businessman in the United States. The process details of creating a limited liability company are a bit different according to related, but the whole thing can be explained in seven steps, as you see here;
- Choose your state
For many business owners, choosing the state in which they intend to be their LLC’s location is important. If your business has a physical presence or offices in more than one state, you should register for a foreign LLC in those states rather than your home state.
- Choose your business name
The next step is to give a personality to your business by choosing a name for it. Since your LLC needs to be unique, you can run an online LLC name search to avoid duplicating. You also need to obey some common rules here;
- Your LLC name should be accompanied by the phrase “limited liability company” or one of its abbreviations (LLC or LLC).
- Your business name should not confuse the reader as they wonder if this is a government agency (e.g., FBI, Treasury)
- A licensed individual and more paperwork are required if you decide to cooperate with a professional, such as an LLC doctor or an LLC attorney.
- Opt for a Registered Agent
A registered agent is a mediator who is tasked to receive official documents on behalf of the LLC and then pass on these documents to the person in charge of the LLC. Being a registered agent is not a big problem; any person older than 18 years old can be one of them. Note that the chosen registered agent must be available at an address within your state during normal business hours. If you think no person now deserves an agent, there are some agencies that can provide similar services, with pricing, of course.
- Provide your state’s LLC Article of Organization Form
To provide authority for your LLC as a legal entity, you need to file a document with the state agency that manages business filings in your state, which is called the “LLC Article of Organization” Form. Each state has a unique form, but the common basic information listed here should be written on all of them;
- Your business name
- Your principal office address
- The duration of your LLC
- The purpose of the business
- The way your LLC will be managed
- Contact information for the registered agent
Some states like New York will ask you to publish a notice in the newspaper indicating your desire to register your LLC as an additional step. To review the naming requirements for your LLC, you can visit the website of the state agency responsible for business filings, which is the Secretary of State in most states.
- File the Articles of Organization
In this step, file an Article of Organization about your LLC and ensure all mentioned details are accurate. Based on the state where you have sent the request, you have to pay a filing fee as a routine process of paperwork. Once approved, you will be issued a certificate by the state to indicate your LLC is formally registered. This is the golden key you are going to use in the following steps, including setting up an official business bank account and getting a tax ID number for your company.
- Build an operating agreement
Your LLC is built with members with different positions and skills, so an operating agreement is required to support the financial, legal, and management rights of all members of your founded LLC. Furthermore, it can contain the method of profit distribution, how a member can leave LLC, and the available positions and titles in the office and their tasks.
An operating agreement is not a document many states ask from you. Still, whenever there is more than one member in your LLC, it is recommended to craft an operating agreement, so the partners and employees are informed about their rights and responsibilities to avoid possible contentions.
- Keep your LLC operating and active
The fundamental steps we gathered here are only the first chapter of your LLC book; now, you should write a roadmap for your company and ensure it remains in good standing in the home state. For taxation issues, you have to file an annual report of your LLC’s performance and updated information and pay an annual fee to the government.
What Requirements Are There In Filing For an LLC?
The requirements of creating an LLC are different state by state, so you need to check the particular information about your state. For example, suppose you have decided to open an LLC office in Montana. In that case, you should run the main steps in the previous section plus provide Montana LLC operating agreement and request an EIN (Employer Identification Number) either from IRS or by email. To file the Montana LLC Articles of Organization, a nonrefundable 70$ must be paid.
Who is an LLC lawyer?
Many business owners are obsessed with federal paperwork, which is boring and time sparing, so most of them prefer to hire an expert in LLC filings, known as an “LLC lawyer.” An LLC lawyer can help you decide if an LLC structure is appropriate for financial goals and how to construct it to keep yourself out of legal issues, resulting in saving your energy and money.
Do I Need an LLC lawyer?
Well, if you think hiring an LLC attorney is not a positive point in your business plan, skip this level and go on by yourself. However, owning a large business project, you can hold it just with your two hands, and soon, you have no choice except to dedicate some rough and bumpy missions to your assistants.
Just remember that sometimes the value of time is much more expensive than the money you are sparing, so let’s forbear a bunch of dollars and hire an LLC attorney for yourself.
When to Use an LLC lawyer?
As you see, the story of founding an LLC can be as long as an official company, so a helpful hand from an LLC lawyer can shorten this road for you. Most documents, such as writing a business plan or naming your LLC, can be done individually. Nevertheless, some document filing has a more complex process, so it is better to be completed by an LLC attorney to avoid any legal errors or mistakes. The steps in which an LLC attorney can be involved are written below;
- Crafting contracts for use between the business and its clients
- Negotiations associated with the sale or acquisition of your LLC
- Any legal action taken by a municipality, state, or federal entity that might claim your business has violated the law in some way
- Any legal action taken by prior, current, or future employees concerning anything workplace related
How to find an LLC lawyer near me?
How to find an LLC attorney near me? This is the question most business owners ask when they arrive at this stage. Believe me or not, their concern about hiring a good LLC lawyer is legitimate because there are many amateur lawyers and agencies which have enough power to demolish all paperwork you have done until now. Several methods of finding the best business lawyers in Colorado (or wherever you are) can be chosen from the list below.
- Ask other business owners
Whenever you are confused about finding an LLC lawyer near me, never neglect your business friends, especially when they have built their LLC before you start trying. Ask them if you have any experience working with an LLC attorney. If they were happy with their lawyer, the chances are good that the same lawyer can help you, too.
- Search for online legal services and agencies
The world of the internet is the era of freedom. Some owners may say, “utilizing online legal services can be a short-term solution until I find an LLC attorney near me,” but these agencies are expert enough to support your business the whole time. Some examples of these online legal agencies can be UpCounsel, LegalZoom, and Rocket Lawyer, which have legal business plans that give you unlimited access to business legal forms with a fee of less than 40$ per month.
If you are still amused, Avvo is also a good option as they host the largest online lawyer directory, and you can sort by federal zip code, level of experience, and the type of help you need for your business. So the next time you ask, “how can I find an LLC lawyer near me?” just open your laptop and visit these websites.
- Visit your local law school
Many law schools and universities have entrepreneurship clinics where law students and graduates have an opportunity to work under the supervision of a law professor. The whole entrepreneurship clinic is free for visitors; therefore, getting some advisory information about LLCs from available law students is favored.
- Attend business events and conferences to meet your dreamed LLC lawyer
The next way to seek an expert LLC attorney is by attending financial meet-ups and business conferences. In most cases, the organizers of these events also invite local lawyers in order to attend or give a speech, so it is a nice chance to know them from close.
What are some good LLC lawyers near me?
The recommended methods above seem insufficient; how can I still find a good LLC lawyer near me on the internet? There are some attorney communities where many lawyers are membered there, including an LLC lawyer. To find an LLC attorney near me, make sure you have reviewed all communities brought as an example here;
The next alternative road to reach an LLC attorney near me is “The Federal Trade Commission,” which is a government agency that deals with issues related to business and advertising. Since protecting consumers from unfair or deceptive practices by businesses is one of their primary goals, you can find a wealth of information about anything you need to know about forming LLCs.
Our thanks and appreciation for reading. Creating an LLC is very easy these days, especially when there are many professional services, including ZenBusiness, Inc Authority, and LegalZoom, which can help you provide detailed information and fascinate the building process. For more information, or to find an LLC lawyer near me, visit the official website of the Secretary of State and the related state-specific documents about running a new limited liability company.