The formation does not require corporate tax payments. However
forming an LLC protects your personal saving and extends only to the companies
assets. It also provides a full proof legal structure and corporate acceptability.
Things
to Consider
Before forming a Limited Liability Company there are a
few things to consider. Considerations include cost of incorporation, length of
process, documentation and procedure. Others involve following certain
procedural steps, hiring an attorney or using an LLC service provider.
Ways
to Form an LLC
A business owner has basically three methods to forming
an LLC. The person could leverage on a legal filling service, hire an attorney
or do-it–yourself. Your host state is usually the best option for setting up
the company.
How to
Form an LLC
A limited liability company protects the business owner
personal assets from litigation. To form an LLC you need a certificate of
organization and article of association. This is issued by the states corporate
affairs commission.
There are minimum provisions for each document. To form a
corporation, draft a certificate of incorporation. Elect a board of directors
and submit article of incorporation to state regulatory body.
You need to file IRS form within a stipulated period. The
duration of the process depends on the proficiency of the person processing the
documents and state. It could take a week or several weeks to attain your
documentation.
LLC
Online Filling Service Providers
Legal documentation is time consuming, tedious and
requires accurate details. A specialized service provider takes care of minute
details such as front size, ink, paper size and other small details.
Some online
filling services reduce the complexity of the process and are cost
effective. An online legal service will file the appropriate documents and save
valuable time. The price differentiation of doing it yourself is rather small
when using their service. Such services allow the business owner concentrate on
the core business and leave the legal stuff to experts.
If you wish to save money or are cash strapped download
the request form, fill and deliver the completed form to secretary of state
office or corporate affairs commission.
Hire
an Attorney
Some attorneys are specialized in forming companies.
There legal fees are higher than online services. The attorney should liaison
with the business owner to provide legal help on share structure, stock
allocations and incorporation.
Having your company incorporated as an LLC provides a
strong legal framework and attracts huge business prospects. Large
conglomerates, foreign companies and government will only do business with
Limited Liability Companies.
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