The requirements for establishing an LLC can vary from state to state, but there are commonalities across states. The name of your LLC must comply with the rules of your state’s LLC division.
- the name cannot be the same as the name of another LLC on file with the LLC office
- the name must end with an LLC designator, such as “Limited Liability Company” or “Limited Company,” or an abbreviation of one of these phrases (such as “LLC,” “L.L.C.,” or “Ltd. Liability Co.”),
- the name cannot include certain words prohibited by the state, such as Bank, Insurance, Corporation or City
You also must ensure that the name you choose does not violate another company’s trademark. Further, you will want to reserve the website domain for your new business entity and confirm that it is available.
After choosing a name, the next step is to prepare and file the articles of organization with your state’s LLC filing office.
You will be required to list the name and address of a person, usually one of the LLC members, who will act as your LLC’s registered agent which means the person designated to receive legal papers in any future lawsuit involving your LLC.
Operating agreements are not required to be filed with the LLC filing office and are rarely required by state law, but it is essential that you create one. In an LLC operating agreement, owners set out rules for the ownership and operation of the business.
A typical operating agreement includes:
- the members’ percentage interests in the business
- the members’ rights and responsibilities
- the members’ voting power
- how profits and losses will be allocated
- how the LLC will be managed
- rules for holding meetings and taking vote
Some states require the newly established company to publish a notice in a local newspaper, stating that you intend to form an LLC. Owners are required to publish the notice several times over a period of weeks and then submit an affidavit of publication to the LLC filing office.
After completing the steps above, owners must obtain the licenses and permits that all new businesses must have to operate. These may include a business license, a federal employer identification number, a sellers’ permit, or a zoning permit.
Camuso CPA PLLC’s focus and specialization delivers a unique perspective on best industry practices to provide the most value to clients. If you are setting up a business in Charlotte, you can save a lot of money enlisting our help establishing an LLC.
Contact us today for financial and tax planning and get your finances in order: https://www.camusocpa.com/contact/#/