Legal Forms You Need for Running an LLC
A Limited Liability Company (LLC) is a popular business structure. This business entity is easy to set up and allows for pass-through tax status. An LLC also prevents business owners from being personally liable if the company comes under legal scrutiny, which protects personal financial assets.
To enjoy the benefits of an LLC, it's essential to set up this business structure correctly. The best way to start this process is by completing and submitting the correct documents. The following legal forms will help you get your LLC running smoothly and successfully.
Articles of Organization
Every state requires LLCs to submit an Articles of Organization. This legal document outlines the basic information for your company. You can get it from your Secretary of State, which is also where you file the document once complete. The form asks for your full business name, purpose of your business, address, ownership details, management structure, registered agent, and how long your LLC plans to operate.
An Operating Agreement protects your company's LLC status. This agreement acts as a contract between members and outlines each person's rights, roles, and responsibilities. Once members sign this document, they are bound to uphold the agreement between one another. Depending on your state, this form is also known as an Operating Agreement, LLC Agreement, and LLC Partnership agreement.
Operating Agreement Amendment
Change is expected in business. At some point, if the LLC Operating Agreement no longer reflects the best interests of members, you must dissolve or amend it. Generally, it's much less labor intensive to simply amend the original agreement, especially if you intend to keep most of the original provisions.
An Operating Agreement Amendment will indicate which sections of the original document have been revised. Not every operating agreement can be amended. The original operating agreement will say if amending is possible.
LLC Membership Admission Agreement
If you want to add someone new to your LLC membership, you'll need to put that in writing. An LLC Membership Admission Agreement enables you to add a new member to your existing company legally.
EIN (Employee Identification Number)
Even if your business consists of just you as the only employee, you need to file for an EIN (employee identification number) with the IRS. You will use this number instead of your social security number for filing all tax-related documents with the government. You'll also need it to open a bank account and hire employees. You can get an EIN by filling out and filing IRS Form SS-4.
To keep track of businesses operating within their borders, states require up-to-date, detailed records from companies, including periodic reports for taxes and annual revenue. These reports have various names, such as franchise tax reports, sales and use tax, annual certifications, and statements of information. They are usually due annually or biennially.
Some states, such as California, Washington, Nevada, and Alaska, require LLCs to file a report upon formation. Check with your Secretary of State to learn where and when you should file your annual reports.
When an LLC is formally established after filing Articles of Organization, members of the business are free to file resolutions. Once the resolutions are decided by all involved, members are bound to follow them. LLC Resolutions are generally passed if a majority of LLC members vote in favor.
Common reasons for resolutions include applying for a loan, buying real estate, approving profit distributions, and voting in new LLC members.
LLC Banking Resolution
To open a business banking account, you need an LLC Banking Resolution. This formal document enables your company to establish a banking relationship. On this form, you will list the representatives in your company who are authorized to manage the company's bank account and the privileges attached to doing so. Only those on the resolution can perform banking tasks for the company.
LLC Consent in Lieu of a Meeting
While meetings are common when you run a business, it's not always necessary to hold a meeting to come to a resolution. If a decision can be made without a meeting among the company members, an LLC Consent in Lieu of a Meeting can serve as an agreement among members regarding a specific decision. Using this form can expedite decisions that require quick action.
Profit and Loss Statement
A Profit and Loss Statement, or P&L, gives you a clear picture of your company's profitability and is an essential document for any business venture. This form measures and reports your company's expenses and revenue during a specific period and gives the facts about your company's financial state. The P&L includes your net sales, gross margin, net profit, cost of goods sold, and expenses.
LLC Organizational Meeting Minutes
When you form an LLC, you must abide by certain guidelines to maintain limited liability protection. One of those guidelines is keeping detailed, accurate records of company meetings. The LLC Organizational Meeting Minutes form enables you to keep accurate minutes of official meetings, so the company's decisions and actions can be documented as a permanent record.
Running an LLC can be an exciting, lucrative, and satisfying experience. When you decide to start your own Limited Liability Company, make sure to fill out all the necessary paperwork.
It helps to know there is guidance about what forms you need to fill out to make your LLC compliant. Here at 360 Legal Forms, we're happy to answer any questions you have about the required forms you need for setting up your Limited Liability Company. Sign up for our Free Trial to gain access to hundreds of attorney-vetted legal forms.
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