Creating a LLC
- Thread starter bob4432
- Start date
dartworth
Lifer
- Jul 29, 2001
- 15,200
- 10
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http://www.keytlaw.com/az/formllc.htm
I don't live in Arizona, but I set one up in my state and it is very easy. Just had to fill out a form and mail it in with a check.
some more good reading
Nolo LLC FAQs
I don't live in Arizona, but I set one up in my state and it is very easy. Just had to fill out a form and mail it in with a check.
some more good reading
Nolo LLC FAQs
I agree with this sentiment, it may be easy to set up (not sure about AZ) but you want to make sure you've done everything correctly.
In NC all the forms are online at the states site.
In fact 1 project was to setup a LLC for my business law class. Mind you we did not send them in, but the teacher graded us on if we did it correct or not. I think we got a couple dates wrong or soemthing simple but was easy and I remember getting a A on it.
In fact 1 project was to setup a LLC for my business law class. Mind you we did not send them in, but the teacher graded us on if we did it correct or not. I think we got a couple dates wrong or soemthing simple but was easy and I remember getting a A on it.
- Sep 6, 2003
- 11,726
- 45
- 91
i wouldn't mind having a lawyer look it over, but would rather just have 1 lawyer consulting fee than to have him/her actually do it. at least i could try to do it, if i take it to a lawyer and do not do it correct at least i will have know why.
thanks for the info
thanks for the info
Go to your state's Secretary of State office. Most likely fill out a form and pay a fee and that's it.
Personally, I wouldn't use a lawyer for that, but it's your call.
Personally, I wouldn't use a lawyer for that, but it's your call.
RossMAN
Grand Nagus
- Feb 24, 2000
- 78,927
- 389
- 136
Originally posted by: bob4432
i wouldn't mind having a lawyer look it over, but would rather just have 1 lawyer consulting fee than to have him/her actually do it. at least i could try to do it, if i take it to a lawyer and do not do it correct at least i will have know why.
thanks for the info
Yep and you can find the forms here
http://www.cc.state.az.us/corp/filings/forms/index.htm
If you can find a lawyer who specializes in registering LLC's, have them review the documents. Hopefully they can do this for $100 or less.
My company is an LLC -- I initially was considering a Corporation prior to consulting my attorney. There are other types of businesses, such as S-Corporations, Sole-Proprietors, and Partnerships. Are you sure LLC is the type of business you want? Regardless of what type you choose, it's important you follow the by-laws, operating agreements, and/or articles of incorporation that you draft. Otherwise, you may be more liable than you'd like.
If you don't understand the differences between the types of companies, or don't want to pay an attorney, I'd suggest beginning at this site: My Corporation
Standard Disclaimer: I am in no way affiliated with this site.
If you don't understand the differences between the types of companies, or don't want to pay an attorney, I'd suggest beginning at this site: My Corporation
Standard Disclaimer: I am in no way affiliated with this site.
dartworth
Lifer
- Jul 29, 2001
- 15,200
- 10
- 81
FYI:
If you are forming an LLC in Arizona or New York, you must take an additional step to make your company official: You must publish in a local newspaper a simple notice stating that you intend to form an LLC. You are required to publish the notice several times over a period of weeks and then submit an "affidavit of publication" to the LLC filing office. Your local newspaper should be able to help you with this filing.
If you are forming an LLC in Arizona or New York, you must take an additional step to make your company official: You must publish in a local newspaper a simple notice stating that you intend to form an LLC. You are required to publish the notice several times over a period of weeks and then submit an "affidavit of publication" to the LLC filing office. Your local newspaper should be able to help you with this filing.
- Sep 6, 2003
- 11,726
- 45
- 91
being the business/law illiterate persona that i am, what is the straightfoward answer?
basically my wife knows her sh!t, but we would like to protect our home and other items if something were to ever come up. there is not much capital for her business because it is all knowledge (intellectual property which she sells in the form of consulting), we just don't want any of our "personal" items to ever be in the gray as we have worked hard to get where we are at.
dartworth
Lifer
- Jul 29, 2001
- 15,200
- 10
- 81
Ripped from here
A limited liability company (LLC) combines attributes of both corporations and partnerships (or, for one-person LLCs, sole proprietorships): the corporation's protection from personal liability for business debts and the pass-through tax structure of partnerships and sole proprietorships. And, while setting up an LLC is more difficult than creating a partnership (or sole proprietorship), running one is significantly easier than running a corporation.
Here are the main features of an LLC:
Limited Personal Liability
Like shareholders of a corporation, all LLC owners are protected from personal liability for business debts and claims. This means that if the business itself can't pay a creditor -- such as a supplier, a lender, or a landlord -- the creditor cannot legally come after any LLC member's house, car, or other personal possessions. Because only LLC assets are used to pay off business debts, LLC owners stand to lose only the money that they've invested in the LLC. This feature is often called "limited liability."
Exceptions to Limited Liability
While LLC owners enjoy limited personal liability for many of their business transactions, it is important to realize that this protection is not absolute. This drawback is not unique to LLCs, however -- the same exceptions apply to corporations. An LLC owner can be held personally liable if he or she:
* personally and directly injures someone
* personally guarantees a bank loan or a business debt on which the LLC defaults
* fails to deposit taxes withheld from employees' wages
* intentionally does something fraudulent, illegal, or clearly wrong-headed that causes harm to the company or to someone else, or
* treats the LLC as an extension of his or her personal affairs, rather than as a separate legal entity.
This last exception is the most important. In some circumstances, a court might say that the LLC doesn't really exist and find that its owners are really doing business as individuals, who are personally liable for their acts. To keep this from happening, make sure you and your co-owners:
* Act fairly and legally. Do not conceal or misrepresent material facts or the state of your finances to vendors, creditors, or other outsiders.
* Fund your LLC adequately. Invest enough cash into the business so that your LLC can meet foreseeable expenses and liabilities.
* Keep LLC and personal business separate. Get a federal employer identification number, open up a business-only checking account, and keep your personal finances out of your LLC accounting books.
* Create an operating agreement. Having a formal written operating agreement lends credibility to your LLC's separate existence.
Forming an LLC
To create an LLC, you begin by filing "articles of organization" (in some states called a "certificate of organization" or "certificate of formation") with the LLC division of your state government. This office is often in the same department as the corporations division, which is usually part of the secretary of state's office. Filing fees are typically $100 or less.
You can now form an LLC with just one person in every state. While there's no maximum number of owners that an LLC can have, for practical reasons you'll probably want to keep the group small. An LLC that's actively owned and operated by more than about five people risks problems with maintaining good communication and reaching consensus among the owners.
Many states supply a blank one-page form for the articles of organization, on which you need only specify a few basic details about your LLC, such as its name and address and contact information for a person involved with the LLC (usually called a "registered agent") who will receive legal papers on its behalf. Some states also require you to list the names and addresses of the LLC members.
In addition to filing articles of organization, you must create a written LLC operating agreement. While you don't have to file your operating agreement with the state, it's a crucial document because it sets out the LLC members' rights and responsibilities, their percentage interests in the business and their share of the profits.
Finally, your LLC must fulfill the same local registration requirements as any new business, such as applying for a business license and registering a fictitious or assumed business name.
A limited liability company (LLC) combines attributes of both corporations and partnerships (or, for one-person LLCs, sole proprietorships): the corporation's protection from personal liability for business debts and the pass-through tax structure of partnerships and sole proprietorships. And, while setting up an LLC is more difficult than creating a partnership (or sole proprietorship), running one is significantly easier than running a corporation.
Here are the main features of an LLC:
Limited Personal Liability
Like shareholders of a corporation, all LLC owners are protected from personal liability for business debts and claims. This means that if the business itself can't pay a creditor -- such as a supplier, a lender, or a landlord -- the creditor cannot legally come after any LLC member's house, car, or other personal possessions. Because only LLC assets are used to pay off business debts, LLC owners stand to lose only the money that they've invested in the LLC. This feature is often called "limited liability."
Exceptions to Limited Liability
While LLC owners enjoy limited personal liability for many of their business transactions, it is important to realize that this protection is not absolute. This drawback is not unique to LLCs, however -- the same exceptions apply to corporations. An LLC owner can be held personally liable if he or she:
* personally and directly injures someone
* personally guarantees a bank loan or a business debt on which the LLC defaults
* fails to deposit taxes withheld from employees' wages
* intentionally does something fraudulent, illegal, or clearly wrong-headed that causes harm to the company or to someone else, or
* treats the LLC as an extension of his or her personal affairs, rather than as a separate legal entity.
This last exception is the most important. In some circumstances, a court might say that the LLC doesn't really exist and find that its owners are really doing business as individuals, who are personally liable for their acts. To keep this from happening, make sure you and your co-owners:
* Act fairly and legally. Do not conceal or misrepresent material facts or the state of your finances to vendors, creditors, or other outsiders.
* Fund your LLC adequately. Invest enough cash into the business so that your LLC can meet foreseeable expenses and liabilities.
* Keep LLC and personal business separate. Get a federal employer identification number, open up a business-only checking account, and keep your personal finances out of your LLC accounting books.
* Create an operating agreement. Having a formal written operating agreement lends credibility to your LLC's separate existence.
Forming an LLC
To create an LLC, you begin by filing "articles of organization" (in some states called a "certificate of organization" or "certificate of formation") with the LLC division of your state government. This office is often in the same department as the corporations division, which is usually part of the secretary of state's office. Filing fees are typically $100 or less.
You can now form an LLC with just one person in every state. While there's no maximum number of owners that an LLC can have, for practical reasons you'll probably want to keep the group small. An LLC that's actively owned and operated by more than about five people risks problems with maintaining good communication and reaching consensus among the owners.
Many states supply a blank one-page form for the articles of organization, on which you need only specify a few basic details about your LLC, such as its name and address and contact information for a person involved with the LLC (usually called a "registered agent") who will receive legal papers on its behalf. Some states also require you to list the names and addresses of the LLC members.
In addition to filing articles of organization, you must create a written LLC operating agreement. While you don't have to file your operating agreement with the state, it's a crucial document because it sets out the LLC members' rights and responsibilities, their percentage interests in the business and their share of the profits.
Finally, your LLC must fulfill the same local registration requirements as any new business, such as applying for a business license and registering a fictitious or assumed business name.
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