Two Legal Tips for Forming an LLC & Associated Business Entities
The term LLC stands for “limited liability company.” As the name suggests, there are definite legal and financial benefits to forming an LLC. However, creating a new LLC must be done properly in order for your business to remain compliant with federal and state laws and avoid penalties.
Here are 2 legal tips on how to form an LLC.
Consider Reserving Your LLC’s Preferred Name
Most states don’t allow the existence of two business entities that share the same name. For example, you can’t name your business “Bob’s Accounting Services, Inc.” if there’s already a “Bob’s Accounting Services” in another city.
If you desire a certain name for your LLC, but you’re not yet ready to file all the paperwork, consider reserving the name with your state. There is typically a small name reservation fee that you’ll have to pay, but if the name is really good then it may be worth it.
Make Sure Your Registered (Statutory) Agent Is Trustworthy
The majority of states require LLCs to name a registered agent that will receive lawsuits, subpoenas, and other key documents on behalf of the LLC. In many cases, an officer or member of the LLC itself can serve as the registered agent. Whatever the case may be, make sure that the agent you pick is trustworthy, organized, and punctual in performing his duties. In some cases, the registered agent may need to sign the articles of organization in order to legally establish your LLC.
There is a lot of paperwork that goes into forming an LLC and several steps that must be carefully considered. However, the legal and financial benefits are often worth the effort. If you are looking for an easy way to form and manage an LLC, reach out to Filejet today. Our user-friendly and intuitive platform takes the hassle out of corporate filing and maintenance.