How to Form a Limited Liability company

Small business owners are required by law to incorporate the business. They usually start by incorporating as a sole proprietor/LLC. This is easy to achieve and the one man business attracts minimum legal expenses and forming.
The formation does not require corporate tax payments. However forming an LLC protects your personal saving and extends only to the companies assets. It also provides a full proof legal structure and corporate acceptability.
Things to Consider
Before forming a Limited Liability Company there are a few things to consider. Considerations include cost of incorporation, length of process, documentation and procedure. Others involve following certain procedural steps, hiring an attorney or using an LLC service provider.
Ways to Form an LLC
A business owner has basically three methods to forming an LLC. The person could leverage on a legal filling service, hire an attorney or do-it–yourself. Your host state is usually the best option for setting up the company.
How to Form an LLC
A limited liability company protects the business owner personal assets from litigation. To form an LLC you need a certificate of organization and article of association. This is issued by the states corporate affairs commission.
There are minimum provisions for each document. To form a corporation, draft a certificate of incorporation. Elect a board of directors and submit article of incorporation to state regulatory body.
You need to file IRS form within a stipulated period. The duration of the process depends on the proficiency of the person processing the documents and state. It could take a week or several weeks to attain your documentation.
LLC Online Filling Service Providers
Legal documentation is time consuming, tedious and requires accurate details. A specialized service provider takes care of minute details such as front size, ink, paper size and other small details.
Some online filling services reduce the complexity of the process and are cost effective. An online legal service will file the appropriate documents and save valuable time. The price differentiation of doing it yourself is rather small when using their service. Such services allow the business owner concentrate on the core business and leave the legal stuff to experts.
If you wish to save money or are cash strapped download the request form, fill and deliver the completed form to secretary of state office or corporate affairs commission.
Hire an Attorney
Some attorneys are specialized in forming companies. There legal fees are higher than online services. The attorney should liaison with the business owner to provide legal help on share structure, stock allocations and incorporation.
Having your company incorporated as an LLC provides a strong legal framework and attracts huge business prospects. Large conglomerates, foreign companies and government will only do business with Limited Liability Companies.


Post a Comment