Creating a Limited Liability Company (LLC)? Use Caution…Starting a Business is not always a simple venture
So you’re starting a new business? It can’t be that difficult…can it? You do the research and decide that a Limited Liability Company (LLC) is the best entity for your new venture. You may event go online and register your new entity with proper state agency. But use caution. Before you open the doors of your new business be sure you consult with a qualified Business Law Attorney to ensure that you’ve covered all the bases.
As a Business Law Attorney I often meet clients who have set up their LLC and received their Articles of Organization, but they’ve done little or nothing beyond that initial step. Depending upon the type of business you’re starting, several important considerations can often be overlooked. One important step is to be certain that your entity has a comprehensive Operating Agreement. This is a document that governs the operation of the LLC, and it addresses several key issues such as the capital contributions of its members, management of the capital accounts, allocation of profits and losses, the rights and duties of the members, the circumstances under which a member’s interest can be transferred, how the entity can be terminated or dissolved, member liability and indemnification, and the disposition of a member’s interest in the LLC upon their death, just to name a few.
Be certain that you’re asking all the right questions. Have you obtained the necessary licensing required for the type of business you’re forming? What laws or regulations must you comply with in the future? Do you need a federal tax ID number and are you filing the proper forms with the tax authorities? Do you have adequate insurance for the entity? Do you need to register a trademark or trade-name with the appropriate agency? Are you aware of the proper record keeping requirements required by the laws of your state? Does your business need custom-tailored contracts or proposals to do business with third parties? Have you addressed what happens with your business interest upon your death? These are just a few of the questions that you should be asking when you start a business and form an LLC.
For the answers to all of your Business Law questions call Kosa Law Office today at (715) 386-4125. Attorney Stephen Kosa is waiting for you call.