Every small business should have the tools to speed up their registration.
It is important to decide on the best business structure for your business. The most popular business structure is the LLC. small businessesBecause it provides liability protection for its owners (members).
Each state will have its own set of rules, but entrepreneurs can still rely upon certain elements to make setting up LLCs easy regardless of where they are located.
- Select a business name
It is crucial to choose the best business name for your future marketing plans. However, there may be certain rules in each state that could play an important role.
Most states won’t allow two businesses to operate under the same name. An internet search will reveal whether the name has been registered or if it is still in use.
Some states prohibit certain words from being included in business names, such as government, bank or insurance. It might also be necessary to include “limited liability company” in the business name.
- Register a registered agent
Registered agents are individuals or businesses that can receive tax notices, important documentation and other legal instructions on behalf a business. Each LLC must have a registered agent to receive documents and pass them to business owners.
An employee or business owner can be a registered agent. However, there are strict rules that must be followed. This is why registered agent services are available. While these professional services may come with an extra cost, they offer many advantages such as:
- Owners and employees can move freely
- Securely keeping sensitive information confidential
- Lower risk of fines and penalties
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- Prepare and file articles of organization
Articles of Organization are what create obligations between LLC members and between LLC members. The forms will be different for each state. However, there are some essential information:
- Name of the business
- The principal business address
- The business’s objective
- What the LLC’s governance will look like
- Contact information for the agent
One or more members must sign the document once it is completed. You might need to publish a notice in a newspaper if additional steps are required. Check out the individual requirements for each state.
- Draft an Operating Agreement
The operating agreement describes how the business will run, the share distributions, financial details, and any other matters relating to its operations. While an operating agreement may not be required in all states, it is important that one is drafted. It allows for business owners to establish a plan of action.
You can find many templates that are free online and they are useful for an LLC with only one owner. If there are multiple owners, it is best to consult an attorney as distributions can be complex.
- Register for Taxes, Permits, Licensing and Permits
Many states have different licensing requirements and rules. The type of industry and business will play a significant role in determining the licensing requirements. However, every business must ensure they have a tax registration. The IRS (inland Revenue Services) will provide an EIN number (employer identification). Every business must provide an EIN number to all workers.
Even though an EIN may not always be necessary for a small business, such as a sole proprietorship, it’s a smart idea to request one. Most banks will require it to open an account for a business.
The state’s website or municipal office can provide information regarding permits, licensing and taxes. You can also contact a registered agent to learn all of the requirements.
Conclusion
Owners of businesses want to be able to concentrate their efforts on growing and establishing a profitable business. A registered agent can help to streamline and improve the process for establishing an LLC. All of the above are necessary to make LLC registration as simple as possible for business owners.
