Limited Liability Company or the LLC is the most suitable way to register new start-ups. Registering an LLC is an easy procedure with minimum costs. Getting registered as an LLC is the most suitable option for new entrepreneurs because LLC limits the liability of the owner in case the company does not operate as per plan and incurs losses. The owner of the LLC will not be held liable to clear the company’s debts from his private property. Forming an LLC involves simple and easy procedure but most of the new entrepreneurs shy away from registering their firm as LLC because of the red tape and time involved in completing the formalities. There are many corporate services companies like Windsor corporate service who help the clients in registering their companies.
Steps involved in starting an LLC
- The first and foremost step is to name the firm with a unique name and it should contain the words LLC or Limited Liability Company. Keep in mind the name is not restricted or prohibited to use by private individuals. You can know these details from the website of the state of New York.
- The next step is to provide a registered address for the LLC. If the business is run from home you can give your home address or if you have commercial premises, you have to provide that address as service of process address.
- The next step is to employ a registered agent to file and receive all the legal and taxation related correspondence on the company’s behalf. This step is optional. But a professional agent will be able to handle the matters with more experience, saving you time and money.
- The most important step is to fill the company’s articles of organization with the state. You can get the form to be filled with the New York state and fill this form officially creates the LLC in New York.
- After submitting the articles of organization, the LLC has to publish in at least two newspapers. This is required to let the public know about your intent to establish an LLC in New York. The cost of publishing varies according to the registered address of the LLC.
- The final step in forming your LLC is to create your companies operating agreement. This document notifies about the day to day functioning of the LLC, like how the managers and members of the board are chosen, the rights and duties of the members, the shareholding pattern and the manner in which profits will be shared among other important issues related to the functioning of the LLC.
These are the six steps involved in establishing an LLC. Though the process is simple, the filing of different forms and submitting documents and correspondence with the authorities take a lot of paperwork and consumes time. Hiring a corporate services company helps you to concentrate on the other important aspects of developing your business, while they deal with the paperwork and correspondence to get your company registered. They charge a small fee for the services provided but considering the time saved and the experienced handling of issues, the fees is a small investment worth making to get your company started on the right note.