What does it take to form your single member limited liability company? Why is it important?
Most recently states have undertaken the task of making the formation of LLC a priority in an effort to promote its fast paced business environment.
For example the California Secretary of State now offers an On-Line Application to quickly and readily file your Articles of Organization with filing fees. These recent additions are helping business community organizers to quickly pursue the formation of their entity without the need of 3rd party websites.
How easy is it? You ask. You can easily register your California limited liability company by clicking on the following link and following the application process:
What does registering your LLC mean? Registering your LLC will reserve your name with the Secretary of State and protect any potential trademark registration in the use of the name.
Registration Does Not Give You -- However registration does not provide you with governance and other regulatory requirements. Registering will expose you the states LLC's body of law and will require that you comply with the same to remain a validly operating LLC. You, nevertheless, may need to adopt a form of an operating agreement, subscription agreements and unit certificates to ensure that your LLC has the necessary documents to operate successfully. You will also need to register to obtain your Employment Identification Number and Employment Development Division Number once you intend to do business or hire an employee.
Consult With Legal Advisor. You should always consult with your legal advisor before adopting an operating agreement or modifying provisions of an operating agreement. Certain states like California under the California Revised Uniform Limited Liability Company Act prohibit modifying regulations in the operating agreement. A complete understanding of these provisions is necessary before you decide to register your LLC or adopt its operating agreement.