Establishing a Limited Liability Company (LLC) requires a lot of paperwork. This includes forms for registration, for obtaining permissions and licenses to run the business, and for tax purposes. In fact, there is more paperwork involved for an LLC than for a partnership firm. Since each state has its own law governing LLC, the forms and fees may vary from one jurisdiction to another. To an extent, the forms differ for single-member LLC and multi-member LLC.
To start with, you may want to ensure that the name chosen for your LLC is available even if there are delays in completing the procedure. This can be achieved by registering the name using the specified form. In certain states an advertisement has to be published in the local newspaper declaring the intention to launch an LLC. This has to be done according to a stipulated format.
Articles of Organization, Operating Agreements, amendments to these documents, the conversion of a single-member LLC to a multi-member LLC, changes relating to the Registered Agent, or the dissolution of an LLC all must be filed according to specific forms. There is even a specific format for the letter submitting the documents to the Secretary of State.
IRS Form SS-4 has to be filed to obtain an Employer Identification Number. Information relating to income or loss has to be submitted to the IRS on Form 1065. Other form required include Membership Certificates, a registry of members, minutes of meetings, and commonly used resolutions. Some of these are not mandatory, but it is advisable to have them.
You can study the applicable state rules and lists of requirements, or approach a professional to handle the matter. But there are inexpensive books and software available to simplify the chore. In many cases the professionals depend upon such ready-made tools.
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Single Member Limited Liability Company
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Several states permit the formation and operation of a single-member Limited Liability Company (LLC). The question that arises automatically is why anyone should register himself as a LLC when he can run the business as a sole proprietary concern. The answer is simple – with...
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Limited Liability Company
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The Limited Liability Company (LLC) is a comparatively new form of business entity, which started in Wyoming in 1977. It is neither a corporation nor a partnership, but combines the benefits of both. The persons who have interest in an LLC are known as ‘members’...
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Limited Liability Company Kit
10 August 2010 8:30 PM |
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Once you have decided to form a Limited Liability Company (LLC), registering it can be made easier and faster, and running it made more efficient, by using the readily available kits prepared by experts. These can be categorized as pre-operational kits and post-registration kits. Special...
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Limited Liability Company Act
10 August 2010 8:30 PM |
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In 1977, Wyoming became the first state in the U.S. to enact Limited Liability Company (LLC) legislation. This new type of business entity attracted a great deal of attention, and other states started following Wyoming’s example. After a decade, the Internal Revenue Service declared that...
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Limited Liability Corporation Forms
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A limited liability corporation is a separate business entity that combines the various characteristics of partnership and corporation to form an entirely distinct legal unit. Limited liability corporations can be broadly distinguished into two forms, namely single-member limited liability corporations and multiple-member limited liability corporations....
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Limited Liability Company Operating Agreement
10 August 2010 8:30 PM |
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An operating agreement is the code by which Limited Liability Companies (LLC) operate. In many states an operating agreement is not compulsory because in its absence the state law will apply by default. That may not be suitable situation for many LLCs, which require specific...
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Limited Liability Company Agreements
10 August 2010 8:30 PM |
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A limited liability company, commonly called an LLC is a business organization that is a hybrid between partnership or sole proprietorship and corporation. Like owners of partnerships or sole proprietorships, LLC owners account for business profits or losses on their personal income tax returns and...
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Limited Liability Company Formation
10 August 2010 8:30 PM |
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Forming a limited liability company (LLC) is not difficult. First of all, you must decide on the type of business, name and the location. Then check the availability of the name and reserve it if you like. The name should end with the letters LLC...
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Limited Liability Company Advantage
10 August 2010 8:30 PM |
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Limited Liability Companies (LLC) offer several advantages over corporations and partnerships. They can be registered in a very short time. The process is simple and the costs involved are not high. Basically, the Articles of Organization (in some states referred to as a Certificate of...
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Limited Liability Company Taxes
10 August 2010 8:30 PM |
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Limited liablity companies are more likely to be subject to a state’s franchise taxes. This franchise tax is the fee the LLC pays the state for the benefit of limited liability. A LLC is not a separate tax entity, instead, it is what the IRS...