Registering your small business as a Limited Liability Corporation (LLC) comes with a number of benefits. Essentially, an LLC is a type of smaller corporation that gives your business access to the same things as a larger corporation, but without any of the negative problems. The best feature is the ability to cut down on your taxes when the business takes a loss. Though you register your small business, you also register yourself as the sole owner, or you and your partner as the business owners. When you lose money one year, you can take that loss on your personal taxes, which is why experts recommend it for those looking at how to save money.
Many individuals do an online file because it is much easier than filing offline. When you file online, the company sends you a dedicated disc through the mail that explains how you fill out the paperwork found on the disc. One document is the Articles of Organization. The Articles of Organization requires that you list the name of your company, any owners of the company, whether you plan to issue stock at a later date, the reason for the company, and the size of the company. The document might also require that you list any information that sets your company apart. For example, you must include if your company has ADA compliant office space.
The other document is an Operating Agreement. The Operating Agreement explains in detail how your business will work. This document must include any rules or regulations that you or you and your partner agree to in advance. In the Operating Agreement, you must list any officers you name, how you conduct elections or name people to the board of directors, the types of meetings you host, and any information relating to how the company works.
Business mentoring is available for those that need help filling out the documents. This person acts as an agent that processes any future documents for your small business, including reports and documents relating to legal issues. Once you file the appropriate documents, the state where your company is identifies your business as an LLC. You must typically pay a fee for filing the paperwork, which is several hundred dollars in most states. When filing online, you can pay with a credit card or debit card. When filing in person at your local courthouse, you typically need cash or a money order. Click here in order to read more about small business help.
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