Are You Planning To Set Up An LLC? Here Is Everything You Need To Know About!

Are You Planning To Set Up An LLC? Here Is Everything You Need To Know About!
October 28 20:12 2018 Print This Article

LLC (Limited Liability Company) is one of the most popular business structures across the world especially for the start up businesses. It is basically formed according to the state law and comes with the major benefit of offering limited liability protection for business owners.

If you too want to start your business by setting up LLC, you should know that the exact rules may vary by state, but the general requirements will be quite similar. There is an ample of online services that can prepare paperwork for you along with making required fillings for modest fee. The following are the key issues as well as steps for organizing an LLC.

Pick up the state where exactly you want to start the LLC

Since the LLC is formed according to rules as well as requirements of specific state law, so the initial decision you should make is where you must organize LLC. In majority of the cases, you must form LLC in state where business will likely be operated since it will save you from complexities later on.

Analyzing issues of raising the money from investors

If your LLC wants to raise money from the investors, venture capital firms, family members, or other such investors, make sure you consider the following things.

  • Many investors prefer investing in the corporations and not in LLCs.
  • If you issue LLC units to the investors will invoke the application of the state and federal security laws. So, you will require getting good legal advice for employing “private placement exemption”.
  • Rights of investors require being clearly set in the Articles of Organization of LLC.

Acquiring required Business Licenses

Depending on the nature of your business, you will even require obtaining state, federal, or local business license. For instance, in case your business is into selling of firearms or alcohol, then you will likely require state, federal, or business license. Some of the cities even need business licenses for the companies engaged in business in the city itself.

Getting proper knowledge beforehand is important to ensure success. When it comes to setting up an LLC as well, you must know the steps to be followed and issues involved as stated above.

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