Introduction to Limited Liability Company (LLC)
A Limited Liability Company refers to a law-abiding formation that enables the company owners to not pay for the company’s debts or liabilities. It generally provides the advantages of a partnership structure but by following the corporation’s legal norms to make the business owners enjoy the prime benefits of partnership and simultaneously not become accountable towards any liabilities, thus avoiding every financial obligation.
Although its working is similar to a partnership, the business owners pay taxable amounts on their profits earned from the operations. They are not obligated to be taxed again at the business level, eliminating the theory of double taxation.
Before deep-diving into the true meaning of a Limited Liability Company, it is imperative to have a basic knowledge of how it operates and what role the business owners have to perform. It is essential to know that the operation-driven rules and regulations vary from state/country to state/country. This provides an edge to foreign members that can be individuals or whole entities to become an owner of the business. The owners are referred to as “Members” of the business and thereby reap the benefits such as protection and operational flexibility.
How to start a Limited Liability Company?
Setting up a Limited Liability Company is relatively easy. However, it varies from region to region, as aforementioned. The process to register an LLC In New York State can feasibly be finished within a few hours to shape the company structure and give it meaning. The filing of the request to form an LLC requires a standard fee; This is to be paid by the business owners before signing a Statement of Information as per the Articles Of Organization. Since the legal formalities depend upon the State Laws, there are some details that the business’s potential would be able to fill.
These details include the-
- Name of the organization
- Residential Information and personal details of all the Members
- Statement of Purpose; that decides the origin of the company
- LLC agent name and personal details.
An LLC works for most small businesses as it is feasible to maintain and operate by the Members. Since it requires a few basic steps, let us go into detail about each step:
- Name Your LLC – There are multiple restrictions to create a name of your Limited Liability Business, after which you get to enjoy the benefits of the company. First, it comes to the formation of the company and thinking of a valid name that is best for business and somewhat describes the business products/services. It is also imperative that the LLC’s name is easy to pronounce, does not invite any legal complications, and positively meets the legal requirements of the State law.
- Make your LLC legal name by using only lawfully accepted words, look up restricted words preset by the State law, and ensure that your company’s name does not include that.
- Use words that help consumers identify your business style, purpose, or products/services and attract the target groups efficiently.
- Be ready to be creative about words, phrases, and everything- come up with the idea that is distinctive and potentially social-media friendly, thus expanding your business’ reach.
- Choose A Statutory Agent – A statutory or Registered agent appointed by the power of State Law to manage the business’ legal requisites on behalf of its members. The agent is also held responsible for receiving the business’s service on its behalf if the company is a non-resident corporation.
- To find a registered agent for your LLC as you want to register an LLC In New York State, always look for an expert service that takes complete accountability for your legal consignments and updates your business’ Information on portals in the event of a change of Information.
- You can appoint one of the LLC members to function as the Statutory Agent and save service fees every time.
- File Article Of Organization – It refers to the governing statement that is legally formatted at the State level and emphasizes the rights and responsibilities of the Members, duties, obligations, and other details regarding each Member. It requires the Members of the business to prepare Information based on the State website and present it via the Statutory agent. The Articles of Organization require you to fill out necessary forms and submit them to the State Secretary, the basis on which the other process will be governed.
- Create An LLC Operating Agreement – To create an LLC Operating Agreement, it is crucial to know in detail about it. An LLC Operating Agreement is the governing document that describes the company’s rules and regulations and states the role of each Member in case of any dispute, business conflict, or when one has to exit. The primary objective of this agreement is to have a written format of the members’ responsibilities and how the business will function. While creating an LLC Operating Agreement, ensure information about the company, its Members, accounting, and taxation procedures to promote business transparency.
- Get EIN and Publish Notice Of Article of Organization – An Employee Identification Number is a unique code that is business-specific and helps it get identified easily. The State uses the EIN to track your operations and monitor your company’s responsibilities towards the consumers, the State, and itself. The EIN is also referred to as the Federal Tax Identification Number since it also helps the State and Federal Government compute business taxes. Employee Identification Number (EIN) further supports the company registering with the government and publishing the Articles of Organization.
Are you planning to set up a new LLC in New York State? Get advanced professionals to do the job for you! Many companies fail to administer their business and run effectively due to a lack of legal guidance, expert assistance, and an inefficient roadmapping of the process. Here comes Windsor Corporate Services to help you through this process and structure your Limited Liability Company with ease. Our services include easy documentation with e-delivery to expedite the tasks, guaranteed services with professional support 24/7. One reason to connect with us is our convenient operational packages and run-through time.
Have a question? Contact us today to know more!