LLC formation

Like a corporation, an LLC requires paperwork for LLC formation. In forming an LLC, the first step of an LLC formation is the filing of Articles of Organization with the state business filing office. Each state has different LLC formation rules, so it is best to check with the state you want to incorporate your business of how to form an LLC in that state.

Branch office LLC formation 

If the LLC is to maintain a business presence in another state, such as a branch office, the LLC must also file registration or qualification papers with the other state's business filing office. LLC formation fees vary, but most are comparable to the fee each state charges for incorporation.

LLC operating agreement

Like a partnership, an LLC should prepare an LLC operating agreement to spell out:

• how the LLC will be owned,
• how profits and losses will be divided,
• how departing or deceased members will be bought out, and
• other essential ownership details.

If you don't prepare an LLC operating agreement, the default provisions of the state's LLC Act will apply to the operation of your LLC. Since LLC owners will want to control exactly how profits and losses are apportioned among the members as well as other essential LLC operating rules, the preparation of an LLC operating agreement is very necessary.