Here’s a guide on how to start an LLC in your state of COM. We’ll cover the steps you need to take to get started and answer some common questions about LLCs.
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Overview
Decide if an LLC is right for your business
An LLC, or limited liability company, is a business structure that can combine the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. An LLC is not a corporation, so it cannot issue stock or hold shareholder meetings. It’s a good choice if you want the benefits of a corporation but don’t want the hassle of meeting corporate formalities.
To form an LLC in COM, you will need to file articles of organization with the Secretary of State. The articles must include the LLC’s name, address, and the names of its initial members. You will also need to appoint a registered agent for your LLC. A registered agent is an individual or company that agrees to accept legal documents on behalf of your LLC. Once your LLC is formed, you will need to obtain any licenses or permits required by state and local law.
You should also create an operating agreement for your LLC. This agreement does not have to be filed with the state, but it is a good idea to have one nonetheless. The operating agreement sets forth the rules and regulations governing the management and operation of your LLC. It can also help prevent disputes among members down the road.
If you want more information on forming an LLC in COM, please see our complete guide below.
Choose a name for your LLC
Your LLC’s name must end with “Limited Liability Company” or an abbreviation of that phrase such as “LLC,” “L.L.C.” or “LC.” You can check to see if your desired name is available by searching the business entity database on the COM Secretary of State website.
You may also want to consider registering a fictitious name (also known as a “DBA” or “doing business as” name) for your LLC. This will allow you to conduct business under a name other than your legal LLC name. Registering a fictitious name is usually done at the county level, so you will need to check with your county clerk’s office to see if they offer this service and what the requirements are.
Register your LLC with the state
An LLC, or limited liability company, is a business structure that combines the personal asset protection of a corporation with the flexibility and tax advantages of a partnership. LLCs are popular among small businesses because they are relatively simple and inexpensive to set up and maintain. In most states, you can form an LLC online in just a few minutes.
To form an LLC in COM, you must file Articles of Organization with the Secretary of State. The filing fee is $100. You can file online, by mail, or in person.
The Articles of Organization must include:
-The LLC’s name and address
-The names and addresses of the LLC’s organizers
-The LLC’s purpose
-The name and address of the LLC’s registered agent
-The date on which the LLC will dissolve, if applicable
-Whether the LLC will be managed by members or managers
-The signatures of the organizers
Get an Employer Identification Number (EIN)
An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity. It is issued by the Internal Revenue Service (IRS). If you have employees, will file taxes electronically, or will be opening a business bank account, you will need an EIN. You can apply for an EIN online for free.
##Heading: Choose a Business Structure
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The first step in starting an LLC is choosing a business structure. There are four main types of business structures in the U.S.: sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. Each has its own advantages and disadvantages.
Sole Proprietorship: A sole proprietorship is easy to form and gives the owner complete control over the business. The owner is also personally liable for all debts and obligations of the business.
Partnership: A partnership is similar to a sole proprietorship in that it’s easy to form and gives the owners complete control over the business. However, in a partnership, there are two or more owners who share in the profits and losses of the business, as well as in the control of the business. Partnerships can be either general partnerships or limited partnerships. In a general partnership, all partners are equally liable for debts and obligations of the business. In a limited partnership, there is at least one partner who has limited liability for debts and obligations of the business.
Limited Liability Company (LLC): An LLC is a hybrid legal structure that combines aspects of both sole proprietorships and corporations. LLCs are easy to form and give their owners limited liability protection from debts and obligations of the business. LLCs can be either member-managed or manager-managed. In a member-managed LLC, all members take part in running the day-to-day operations of the business. In a manager-managed LLC, only designated members take part in running day-to-day operations while all other members are passive investors only.
Corporation: A corporation is more complex to form than other types of businesses but gives its owners limited liability protection from debts and obligations of the business. Corporations can be either S corporations or C corporations. S corporations provide their shareholders with pass-through taxation while C corporations are taxed separately from their shareholders on their profits
Create an LLC Operating Agreement
If you’re starting a limited liability company (LLC), you know that you’ll need to have an LLC operating agreement in place. This document sets out the rules and regulations governing the inner workings of your LLC and protects all the members involved. Here’s what you need to know about creating an LLC operating agreement.
First, what is an LLC?
A limited liability company (LLC) is a business entity that offers its owners personal liability protection from business debts and claims. LLCs are popular among small business owners because they are easy to set up and maintain.
An LLC operating agreement is a legal document that outlines the ownership and operating procedures of your LLC. This agreement is filed with your state when you form your LLC and is required in most states. Even if your state does not require an operating agreement, it is still a good idea to create one.
The purpose of an LLC operating agreement is to:
– Define the roles of each member involved in the LLC
– Describe how the LLC will be managed
– Set out the rules for decision-making, voting, and resolutions
– Outline what will happen if a member leaves the LLC
– Describe how profits and losses will be distributed among members
– Provide a process for admitting new members to the LLC
Creating an LLC operating agreement may seem like a daunting task, but it doesn’t have to be. You can use an online template or hire an attorney to help you draft this important document.
Comply with ongoing LLC requirements
If you already have an LLC, you know there are some ongoing requirements to keep your business compliant and in good standing. These requirements vary from state to state, but here are some of the basics:
-File an annual report
-Pay franchise taxes
-Hold annual meetings
-Keep minutes of all meetings
-Adopt bylaws or an operating agreement
-Issue stock certificates (if applicable)
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