For example, in Texas, an LLC name cannot include profanity language that is obscene in nature (such as explicit sexual language). [1] X Research source To search for your state’s laws regarding LLC formation, visit http://www. nolo. com/legal-encyclopedia/form-llc-how-to-organize-llc-30287. html/ and choose your state.
distinct, easy to remember, easily spelled and pronounced, suggests the items or services that you sell, and distinguishes you from your competitors.
Even after you create your company’s name, do not omit these identifying letters on marketing materials, advertisements, or business transactions. Doing so may lead to unintended consequences. For example, if you leave “LLC” out of your name while doing business, a judge may find that you entered into a business deal as an individual, and not as an LLC. If this happens, you may be found personally liable and may not receive the limited liability shield you anticipated.
Most states have an online database that you can use to search for a small fee. Additionally, some states will allow you to reserve a name for a short period of time before registration so no one else takes your name while you are deciding whether to use it. [3] X Research source
For example, each business that wants to operate in Texas must register its name separately from the articles of incorporation. Some states will charge a fee for name registration. To find out the specific requirements for your state, visit your secretary of state’s website.
For example, a trademark will allow you to hold a domain as yours, as well as any other intellectual property related to your business. You can trademark your business name through the U. S. Patent and Trademark office by visiting their website at http://www. uspto. gov/ and filling out the form. The fee to trademark a business name is between $275 and $325.
The member-managed LLC, where all the owners participate in running the business. [4] X Research source This is the most commonly utilized structure, in large part because most LLCs are small businesses without a need for separate management. [5] X Research source In most states, this is the default structure. [6] X Research source Therefore, if you fail to designate a structure for your LLC, most states will automatically create a member-managed LLC. If you choose this structure and only have one member (a. k. a. , manager), in some states you will not even have to file articles of organization. Check your state laws for more details. The manager-managed LLC, where only designated members (or even outsiders) are given the responsibility of running the LLC. [7] X Research source While this is a less common structure than the member-managed LLC, it can be useful when some members only want to be passive investors. [8] X Research source In addition, this structure may be advantageous if you have some members that are not particularly skilled in managing, or when your ownership is too large or diverse to allow for everyone to manage. [9] X Research source
Generally, you will be required to include your LLC name, legal address, business purpose, names of members and general business structure in your articles of incorporation. At the time you register, you will also have to pay a fee. The amount of the fee will vary between states, but it is typically between $100 and $300.
Keep in mind that the LLC itself cannot act as its own registered agent; so do not enter the limited liability company name as the name of the registered agent.
For example, if you are opening a restaurant, you must have the applicable licenses from the health department. The city Chamber of Commerce may also have information on what type of licenses you need, how to apply for them, and what the fees will be. Additionally, some licenses may be obtained and renewed online.
Contacting the Internal Revenue Service at www. irs. gov. Click on “Apply for an EIN online” in the left corner. Reading the guidelines and click on “apply now. " You will need the following information to apply for an EIN: the name of your LLC, the name and social security number of the owner or managing member of the LLC, the business address, the country of incorporation (United States or a foreign country), the number of members in the LLC, and information about what types of services your business supplies. There is no charge for the application if you go directly through the IRS. [12] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source
Ask the bank if you will need to present certain documentation to open the account, such as your certificate of formation or business license. Banks in Texas may vary in terms of what they require for opening an account.
Protect your LLC status: Having an operating agreement makes your LLC more “legitimate” in the eyes of the court, especially if it is a solely owned LLC. Because there are many different types of business structures, you want to make sure that your LLC is recognized as an LLC and not something different. The formality of an operating agreement insures that your LLC will be seen as an LLC. [14] X Research source Define your management and financial structure: the operating agreement should define how your LLC is going to be run and how the finances will work - including who will share in the profits and what will happen in the event of a disagreement. If you do not have an operating agreement, you and your partners will have a much more difficult time resolving financial or management disagreements. [15] X Research source Override state default rules: each state has laws that automatically govern LLCs in that state unless an operating agreement says otherwise. However, these default rules do not always fit your situation. Therefore, you should write an operating agreement that sets your specific rules for the inner workings of your LLC. [16] X Research source
how much each member of the LLC owns. For example, if you have three LLC members and each member as a 33% interest in the LLC, you should include that figure in the operating agreement. the members’ rights and responsibilities regarding the LLC. Set out what each LLC member is required to do to contribute to the LLC, and the benefits that each member will receive. how the LLC will vote, including the type of voting structure used and the number of votes (or percentage of votes) given to each member. how profits and losses will be allocated to the LLC and among the members. how the LLC will be managed. rules for holding annual meetings and voting on important matters. rules regarding a member’s buyout, or buy-sell, provisions, which determine what happens when a member wants to sell his interest or otherwise cannot hold it (due to death or disability).
Look on your secretary of state’s website to determine what resources may be available to you.
