Steps to Form an LLC in New York
A Limited Liability Company or LLC is a legal structure of ownership that is similar to corporation. It protects the owners from becoming personally liable to business debts. On the contrary, while operating a partnership or a sole proprietorship, it is your responsibility to deal with all your business debts. However, LLC is much easier to be set up and operate, as compared to a corporation. The three basic steps to form an LLC in New York are:
· Choosing name of your LLC: The business name that you choose cannot be same as name of any other business entity filed with the State Department. You can search the online database to find out whether the name you have chosen has been registered with any other business entity. As far as New York LLC is concerned, the name should contain abbreviations ‘L.L.C.’ or ‘LLC’ or words ‘Limited Liability Company’.
· Filing the formation documents: In New York, a formation documents is known as articles of organization and you need to prepare and file them with the State Department. These documents are required to contain the name of your LLC, its address, its purpose and name and address of the registered agent or agency.
· Publishing notice in the local newspaper: In New York, you are required to publish a notice in the local newspaper which states that you are intending to form a New York LLC. The newspaper will be able to help in filing the document.
Though it is not mandatory, you must create an operating agreement for the LLC, which will guide the owners to operate the business like a corporate bylaw, or partnership agreement. These documents are not needed to be submitted to the State Department. Finally, in order to gain the status of separate entity for your LLC, the members are required to observe some formalities like keeping a detail financial record and recording the minutes of meetings and major decisions.
While selecting the name of your LLC, you must keep the following things in mind:
Must contain the words LLC, L.L.C. or Limited Liability Company in the name Should be different from any other LLC, foreign LLC or authorized name registered with the State Department Must not have any prohibited words, phrases, abbreviations or derivatives Should not contain following phrases such as board of trade, chamber of commerce, state police, state trooper, tenant relocation, community renewal, corporation, urban development, urban relocation, partnership or incorporated Should not contain words such as acceptance, indemnity, guaranty, assurance, annuity, insurance, investment, attorney, bank, benefit, lawyer, mortgage, loan, doctor, trust or finance unless approved by the authorities Should not contain words such as handicapped or blind, unless granted by social services of the state department Should not contain the word ‘exchange’ unless approved
The best thing is to choose at least three names as preferred and conduct a search to see the files.
The articles of organization are required to be signed by 2 persons and delivered to the State Secretary. This information should include the name of the LLC, the duration of the LLC, its principal area of office or business, detail about the registered agent, detail about any LLC debts, liabilities and obligations and any other provisions such as purpose of the LLC and provisions laid in operating agreement.
Other statements required at the time to forming a New York LLC include eligibility requirements, membership procedure, membership resignation, dissolution conditions, taxes such as federal income tax, state income tax and federal tax identification number and fees. The filing has to be made with the Secretary of the State and when appropriate, the check has to be accompanied by a document payable for the state.
Nevada LLC Forms
There are several forms that applicants need to submit for registering a Nevada limited liability company (LLC). These forms primarily relate to the articles of organization. The operating agreements are considered to be the most important of all forms for applicants wishing to establish an LLC. There are two types of operating forms, depending on the nature of the company. The first is the manager-managed operating agreement comprising of several members. The second is the member-managed operating agreement. Each has its own unique requirements. The operating agreement forms carry complete instructions and filing information for creating the LLC in the state of Nevada.
Where are the forms for the operating agreement and the other essential items found? In the Nevada Secretary of State’s office. These forms can also be downloaded from any of the agents’ websites, which charge a small amount for delivering the form to you. For applicants who do not have the time or the patience to fill out these operating agreements and other related forms by themselves, there are service agents who offer these services in return for a small fee, usually around $100. These agents ensure that the forms submitted are accurate.
Although the forms that are part of the application process in establishing an LLC in Nevada are simple and can be easily understood and filled by most applicants, there are certain traps that are best avoided, with a little intelligence and common sense. The best way to deal with the issue of filing for an LLC is to seek the services of a specialized service agent. Service agents are professionals in the trade, and they are conversant with the tricks and pitfalls of the process. And the best part is that these service agents do not cost too much for the service. The fee is nominal. These agents take the problem off the customer and deal with it themselves, thereby saving invaluable customer time and effort.