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Forming Your LLC                                          

My Law Daddy prepares and files all forms required to organize your LLC.  However, please consider the following issues when ordering your LLC.

Where to Form the LLC.  Although an LLC can be formed in any state and the District of Columbia, the actual state of formation should be carefully considered.  Typically, individuals form LLCs in their home state.  However, if you do not plan on doing business in your home state, you may want to consider forming an LLC in another state.  Delaware and Nevada are popular states for forming LLCs.  Delaware is considered pro-business, does not tax out-of-state income, and has a well established legal system when it comes to business entities.  Nevada is also considered pro-business, does not tax corporate income and lacks a formal information sharing agreement with the IRS.

Name of the LLC.  The name of an LLC typically ends in LLC, L.L.C. or Limited Liability Company.  Moreover, the name must not resemble the name of another LLC in that state.  Accordingly, prior to forming your LLC, we check to make sure that your chosen name is proper and available in the state of formation.

Management.  An LLC may be managed by its members or, in the alternative, by a manager.  If an LLC is managed by its members, the owners are directly responsible for operating the company.  In contrast, a manager may be elected by the members to operate the LLC.  The manager may be a member or non-member.  However, please note that member-managed LLCs are the most common, especially where there are only a few (or only one) members that actively participate in the LLC's activities.

Officers.  An LLC is not required to have officers.  However, if the members so desire, officers can be appointed to run the LLC's operations.  There no limit on the number of officers.  Moreoever, all offices can be held by one person.

Registered Agent.  An LLC must have a registered agent to receive tax documents and legal process on its behalf.  The registered agent must be either (1) an individual living in the state of formation with a valid street address (no P.O. boxes), or (2) a company authorized to serve as a registered agent.  Accordingly, you may act as your own registered agent if you reside within the state of formation.  However, since the name and address of the registered agent are publicly available, you may want to appoint an authorized company to serve as your registered agent.

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