All information you will need to know about Limited Liability Company (LLC).
A Limited Liability Company, abbreviated as LLC, implies that the business is a legally registered entity. It also implies that shares limit the business. In other words, Limited Liability Company implies that the liabilities of the members are limited. When the business will be dissolving, the shareholders are the ones who will be accountable for the company debts. You should also note that the liability of the business partners would be limited to the amount of funds, which they have invested in the company. The formation of a limited Liability company occurs when two or more people come together and decide to form a partnership. In such a situation, they will get to co –own the business.
What is the procedure of creating a Limited Liability Company?
You should know that the procedure would vary depending in the country or the state you are in. Even so, these are steps that will apply to any limited liability company. The first step would be for you to choose a business name. You will commence the process by doing a name search. You should note that the name of your Limited liability Company should not be the same with another already existing company. Understandably, you should choose a name that is simple and unique. You should also use a name that will provide you with a clue of what your business does. Understandably, the name should end with an LLC description at the end.
You will need to fill all the articles of organisation.
You should note that this would happen after you have selected the most suitable Tennessee Registered Agent company name. Articles of organisations are more or the same as Articles of associations. The next procedure will be for you to make filing payments to the relevant bodies. You should note that the article of association would bear all the much-needed information about your limited liability company. This information includes the company’s name, physical address, its name, and filing agency.
You will need to draft an LLC Operating Agreement.
You should note that an LLC Operating Agreement is a legal document that will create all the parameters used to govern your limited liability company. The document will outlay the obligations as well as the rights that each business partners will have. Due to the magnitude of this document, it will be important if it is drafted when the entire members are present. When drafting the articles of association, its components will differ based on many things. Even so, you should expect the document to have the capital contributed by each member, different ways in which profits would be shared, organisational structure, number of members, tax considerations, and more.
You will need to obtain the much-needed licenses.
Getting a license is a condition for setting up a limited liability company. You should note that one of the valid component is tax registrations.
In conclusion, when setting up a limited liability company, you will need to have an article of association, Tennessee Articles of Organisation licenses, operating agreement, and more.