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How to start an LLC

On Behalf of | Jun 1, 2020 | Business Law

Many business owners decide to form a limited liability company to protect them against business liability. These companies afford management flexibility, tax advantages and allocation of obligations or debts. There is a general roadmap for forming a LLC that help assure these and other business law advantages and meets North Carolina legal requirements.

First, select a name for the company. Generally, these names should include terms like limited liability or abbreviations such as LLC. Names should not lead to confusion with a government agency. Certain names require the inclusion of a license person, such as a doctor or lawyer, as a member of the LLC.

Next, select a person or a business as a registered agent to send and receive legal documents for the LLC. Formation documents, such the articles of organization, should be filed with the North Carolina Secretary of State.

An operating agreement may also set forth the roles of members in the LLC and its ownership. It has several advantages because these documents address organizational matters such as the company’s formation, member and ownership structure. Company management and voting should be covered. Changing members and the procedures for its dissolution are also important.

The operating agreement is also helpful for financial matters. These include how members give financial support to the company, raising funds and sharing profits and losses.

Finally, the company must obtain a social security number, known as an EIN. This is necessary to open bank accounts and for hiring employees.

Other business issues involve finding starting capital because investors do not obtain stock control. Owners and managers may also consider privacy options which may allow them to remain off documents.

An attorney can provide options that help meet your legal and business needs. Lawyers may also draft important LLC documents and ensure that the company meets North Carolina legal requirements.