Steps to Start an LLC: Part 2
If you’re interested in learning how to form an LLC, there is so much information you need to know before you get started. In the last post, we discussed the first three major steps of how to create an LLC. But, there are a few more important steps that anyone who wants to form LLCs. Here are the next steps to start an LLC.
Choose How to Organize
After you’ve selected a registered agent to become the recipient of all legal paperwork and forms, it’s time for the actual structuring and organization of your LLC. The complexity of this process can become confusing easily, so many people choose to hire an outside attorney or LLC organization service to do the legwork. This is often the best way to assure that your LLC has maximum protection. If you feel as though you’re equipped with the knowledge to organize it yourself, you can save some money, but know that it could cost you later if you made any errors in the process that lead to loss of protection. If you have any doubts at all, it’s best to leave the organization process to a professional.
Discuss and Organize Ownership
To create an LLC, you should know that shares of LLCs are divided into what are called ‘units’. Units usually serve as percentages and can be distributed in many different ways. But it’s important to know that majority voting power overrides majority shareholding when it comes to who has the final say in making decisions. Ultimately, members of LLCs will never have to give away their voting power. They will always have the authority and control over the LLC. You should also keep in mind that the IRS automatically classifies an LLC as a partnership or “disregarded entity,” depending on if there is one or more than one owner.
Organize Final Checklist
Despite all the prep work involved, your LLC won’t actually become legal until every document and piece of information has been determined and discussed. The final write-up, which normally averages about one page in length, should clearly state the following information: The LLC’s name, the name and address of the registered agent, a purpose statement, and other information that is optional.
Ultimately, these are the basic steps of how to form LLCs. For more information about how to create an LLC, contact MyUSACorporation.