How to Start a Limited Liability Company: A Walter Morales Guide

Starting an LLC is a perfect way to limit your liability for company debts. According to Walter Morales Baton Rouge, small businesses set up limited liability companies. It’s because of the liability protection they give. It’s also because an LLC is a different entity from its owners. The owners aren’t personally responsible for the business debts. LLCs are more flexible and easier to set up than corporations.

To build an LLC, you need to do some legal paperwork with the administration. The rules are unique to specific states, but some basic steps are the same despite your location.

Choosing a name

Two separate businesses can’t share a name even if they are in different states. You can’t use certain words in many states in a business name like “bank.” It’s good to search for a unique name and whether it’s available. Check this with your state before you do any LLC paperwork. Having a unique name avoids confusion and trademark infringement claims.

Name reservation

After successfully selecting a unique name, fill in your LLC documents right away. It helps you to reserve the name. You will have to reserve the name by paying the reservation fee and filling forms. All states have their standings on reservation period, renewal policies, and filing fees.

Choose a registered agent.

Some states will need you to have a statutory agent, a registered agent. A statutory agent is a registered person who agrees to get lawsuits subpoenas and all official documents on behalf of the LLC. The person then delivers them to an appropriate person in the LLC.

Many states will accept a person aged 18 years and above, including an officer or member of the LLC. Some companies offer registered agent services at a cost.

Make an LLC operating agreement.

An operating agreement shows a roadmap of how an LLC will run. It reveals the following:

· Ownership agreements

· Member voting rights

· How to divide losses and profits

· How to hold meetings

· How to hold meetings

· How to govern the business

· The rights of members if a member dies

· How to dissolve the business

Though the state laws may not need this agreement, it’s an important document. It defines the business rights and responsibilities to reduce future conflicts.

File the organizational paperwork with the state

Every state has its procedure for establishing an LLC. The person forming the LLC or a registered agent must sign the paperwork. The filing fee is different between states.

Get a certificate from the state

After submitting all the paperwork, the state will issue a certificate. The certificate will enable the acquisition of a business license, a tax ID number, and a bank account.

Register the business in other states

If you intend to operate your LLC in different states, you must register the company in those states. You will go through the same paperwork you did in the formation stage. Your business will need a registered agent in all the states it will operate.

Conclusion

An LLC is a flexible and popular business option that works well for small startups. Do the paperwork well and have an operating agreement.

--

--

--

Louisiana Businessman and Professor

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Why Rich People Don’t Rate Ideas

Venture Capital vs Bootstrapping: Jeff Grabow On How To Determine If Fundraising Or Bootstrapping…

Gary Haymann of INK: Optimal Performance Before High Pressure Moments; How To Relieve Stress, Clear

Ten Questions to You Need to Answer Before Quitting the Job to Start a Business

How has Covid-19 impacted global Venture Capital funding so far?

Venture Investments Are Not Bets

Selling to the Enterprise

Selling to the Enterprise

Mr Entrepreneur, Please Stop!

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Walter Morales

Walter Morales

Louisiana Businessman and Professor

More from Medium

This is our twenty-third story.

The Obvious Subtlety

Recalling Our Preemie Journey