We all know that starting a new business is a stressful period in someone’s life. However, there are people that exist to help small businesses. Dowd Law has been helping small businesses get their start for over 20 years. Last week we began enumerating an LLC setup checklist by defining an LLC and explaining operating agreement and name searches. This week we are finishing up the LLC setup checklist of essentials. Remember to contact us with any follow up questions.
What Is An LLC?
An LLC is a limited liability company. LLCs act as a hybrid between a corporation and a partnership. They are owned by one or more individuals, called members. LLCs have a highly flexible management options, as well as having more options for tax structures.
The Checklist, Continued
File Articles Of Organization
The articles of organization are the documents that entrepreneurs must submit in order to actually establish an LLC. There are a few things that filers must include in the articles.
- The LLC company name. (See last week’s post for more details on naming.)
- Principal place of business. Essentially, this is the street address of the LLC’s office.
- Registered agent name, address, and signature. The registered agent is the entity who handles legal communications for a business. Generally, it is an individual person, but in Florida a business can act as the registered agent.
- LLC Purpose. Every LLC must have a purpose that explains what the business does. It is simpler than it sounds. For example “the practice of law” is an acceptable purpose.
- Designation of Manager or Authorized Representative.
Obtain Company Book & Seal
The company book and company seal are used for official company correspondence as well as important company documents. The book stores information such as the operating agreement and articles of organization in addition to company financial information. The book and seal are useful for a variety of reasons. Primarily they help business owners because they place everything in a central, accessible location.
EIN is an acronym for Employer Identification Number, also known as a Federal Tax Identification Number. The EIN is used by the Internal Revenue Service to determine tax amounts for a business.
Obtain All Licenses, Registrations, and Tax Numbers
The amount and type of licenses and registrations vary depending on county and city governments as well as line of work. Generally, most businesses only need county and city occupational licenses. However, there are cases, such as with contractors, when a business needs a state license in order to operate.
Additionally, business owners absolutely must have all necessary tax numbers in order. In addition to the EIN, businesses also need a DR-1 (state sales tax number), as well as a state unemployment tax number.