There are many reasons to form an LLC, and the benefits can be significant. But there are also some potential drawbacks to consider. Here are some things to think about before making the decision to form an LLC.
The first question to ask is whether or not you really need an LLC. For some businesses, the liability protection and tax benefits of an LLC may not be worth the hassle and expense of setting one up. If your business is small and doesn’t have much exposure to liability, you may not need an LLC.
If you do decide to form an LLC, there are a few things you should do to make sure it’s done right. First, choose a good name for your LLC. The name should be unique and easy to remember. It should also be descriptive of what your LLC does.
Next, you’ll need to choose a registered agent. This is the person who will receive legal documents on behalf of your LLC. The registered agent must have a physical address in the state where your LLC is formed.
Finally, you’ll need to file the necessary paperwork with your secretary of state’s office. This includes the Articles of Organization, which are the basic documents that establish your LLC. You’ll also need to pay a filing fee.
Once your LLC is up and running, there are a few things you should do to keep it compliant with state law. First, you’ll need to file an annual report with your secretary of state’s office, which updates your LLC’s information. You’ll also need to hold an annual meeting of your LLC’s members, at which you’ll elect a board of directors and discuss any other important business.
If you’re thinking about forming an LLC, these are just a few things to keep in mind. For more information, check out the resources below or talk to an attorney.
Sources:
https://www.incfile.com/blog/post/llc-or-not-llc-reasons-benefits-dos-donts/
https://www.rocketlawyer.com/article/should-i-form-an-llc-faq.rl
https://www.nolo.com/legal-encyclopedia/should-i-form-limited-liability-company-llc.html