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If you’re looking for a business structure that offers tax and structure flexibility with liability protection, an LLC may be the right fit. Read on to learn how to create an llc and get started.

The first step to forming an LLC is filing articles of organization with your state’s government agency. Once the articles are approved, your LLC is formally created as a registered business entity within your state.

Articles of organization

If you want to create an llc, you need to file articles of organization with your state. These documents provide key details about your company’s legal operations and can help you protect your business from legal disputes in the future.

Articles of organization vary by state, but they generally contain information about your business such as the business name, purpose of the LLC, and day-to-day operations. They also contain information about the members and registered agents of your company.

You can use this information to create an LLC that is compliant with your state’s limited liability regulations. Your business must comply with these regulations if you want to receive any special tax benefits for your company.

A qualified business attorney can help you file your articles of organization in a way that protects you and your company from potential legal issues. They can help you navigate the process while avoiding any legal mistakes that could cost you time and money in the future.

Bylaws

After your articles of organization are filed, you’ll want to create and execute an internal document that outlines how your business will operate. These documents are called bylaws, and they are not required in most states, but they can be beneficial for protecting LLC members’ personal liability, defining ownership rights, setting the percentage of profit shares, and clarifying management practices.

The bylaws of your corporation will include rules and regulations on how your business will handle internal affairs, such as how the board of directors is elected, how officers are selected, and how conflicts of interest can be resolved. They should also list how shareholder shares will be issued and a procedure for amending your bylaws.

In a manager-managed corporation, the bylaws should identify members who are managers and how they will be paid for their work. They should also detail how profit sharing will be distributed to all members, and the manner in which members can sell their shares if they choose to exit the company.

Registered Agent

Choosing a registered agent is an important decision. This is the person who will receive any and all state or legal mail on behalf of your LLC, including service of process, notices about lawsuits, tax liens, and other correspondence.

You can choose to be your own registered agent or use a professional registered agent service. Some registered agents offer services such as providing your business with a physical New York address, forwarding mail, scanning documents and uploading them to an online portal, and keeping your information off the public record.

A registered agent can help you meet your business compliance needs and avoid a costly lawsuit by acting as your first line of defense against any legal action aimed at your LLC. Not having a registered agent can mean missing annual state filings or notification about a lawsuit that is being filed against your company and can result in a judgment being issued against your LLC before you have a chance to defend yourself.

Shareholders

LLCs offer a pass-through taxation structure and limited liability for owners. Members can choose the way they want their business profits to be distributed, and they can compensate employees with equity.

In LLCs, ownership shares are called “units” or “member interests.” It is important to remember that these are essentially pieces of the company, similar to stock in public corporations.

The members’ rights and obligations are outlined in the operating agreement. It sets out how the LLC is managed, what roles and responsibilities each member has, how to transfer ownership rights and dissolve the business.