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Written by : Bryant Dubiel |
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Thanks for your comment Pilar Standafer, have a nice day.
- Bryant Dubiel, Staff Member
and again Jim Hart back out you're here from Hawthorne law and today I want to share with you how to start an LLC [Laughter] this information is gonna be pretty much the similar regardless of what state you're in as an attorney I practice in North Carolina I'm also licensed in Florida so by the end of the day I'm going to tell you about the different steps you need to know if you're gonna start your own LLC and this is really important actually a client in yesterday he was wondering who was trying to going through a divorce situation and they have a business a rental property business that he needs to separate with his wife and they both want to keep the rental properties and we talked about one of the things they can do is start an LLC so how do you do that well it's actually pretty easy to do depending on the state you're on and before I get into that I want to remind you hit the subscribe button below make sure you comment like this video and share it with your following in social media we'd really appreciate it also hit the little bell thingy there should be a bail thing you down there as well I like to say bail thingy I don't know why so that you get notified when I post new videos so anyway here's the deal when you're starting an LLC the first thing you need to do is you need to do a search for your name you need to make sure your name is not taken and this doesn't need to necessarily be your brand name this can be a special name for your LLC your business name but you need to go to the way you're gonna do that is you're gonna go to your Secretary of State's website in the state where you're starting the LLC by the way I need to mention something right off the bat you do not need to go to Delaware you do not need to go to Nevada you do not need to go to why aunt Wyoming to start your LLC you can start your LLC in your own state if you're starting in another state then you're gonna have to register in your own state anyway as a foreign entity big mistake costs a lot of money it's more effort it's more pain than it's worth don't do it there's there's people out there they say you can do that because you can avoid taxes you can't avoid the taxes okay rant over start the LLC in the state where you're doing business that's gonna be the best state for you to do it in that's number one number two so I already mentioned go to your Secretary of State's website do a search for your name make sure the name is not taken if it's not you can go ahead and file what are called or are articles of organization and I think it's named the same thing in all 50 states I'm not sure about that but that's that's what you're gonna file you're gonna fill out this form your articles of organization it's going to give information like the name of the LLC the business address who the agent is make sure you see up here my video on registered agent that needs to be an actual physical address where somebody can accept mail on behalf of your business if you get sued that's where the registered agent does basically there's corporate entities that do that but it means to be a physical address in the state where your LLC is located they're gonna want information such as who the initial members are of the LLC owners of an LLC are called members not shareholders and other information like that and you're gonna take those articles of organization you're going to take them down your Secretary of State's office or potentially you can file this electronically through through the interwebs and you're gonna pay a filing fee it varies in different states and then once they file those your LLC is going to be formed they're gonna send you a little a document back that's gonna tell you that your LLC has been formed then you can the LLC but here's the thing that's not enough people if that's all you're doing to start your LLC there you might as well do nothing because it provides no liability protection to you there's no tax advantages to doing that that you you've basically done nothing to protect yourself which is the whole point of forming LLC hold on a second my wife thinks wanted me when I drink coffee that way anyway if you're getting what I'm saying so far make sure you leave a comment down below and just type something cool you can type something cool that's fine and let me know you get what I'm saying so far so that's number one you got to file those articles of organization but there's another step you need to create and what's called an operating agreement an operating agreement is a document it's a contract between you and you as a member of the LLC and the LLC the basically spells out exactly how the LLC is going to operate what you're gonna pay yourself in terms of a salary or distributions or how those are going to be distributed all those different things where the businesses can be located what you're gonna do if you decide to add new members what you're gonna do if you decide to break up with your the other members how often you're gonna have meetings what's going to be the subs those meetings all these things there's all these things that need to go into this operating agreement and you need to have that done and then you need to follow the next step is you need to actually follow the terms of the operating so that if somebody decides to see you at some point they can't do what's called piercing the corporate veil and by piercing the corporate veil that's how they can do that if you basically don't operate yourself as the LLC according to the terms of your operating agreement so that's important all right the next step is to make sure oh and let me go back if you're in some some states ask you to publish a notification I know I think New York asks you to do this so there might be other requirements in your particular state you want to check those requirements and make sure that you follow the law and the legal requirements in your particular state the next thing you want to make sure you do is remember to to file all the necessary updated paperwork every year and and that may be annual minutes that may be an annual report different things there's usually going to be filing fees associated with with this so you want to make sure you do that on an annual basis to make sure your LLC stays active I've had situations where people have failed to do that and then the LLC becomes inactive and then anything the LLC has done up to that point while it's inactive basically is is void I had a big issue with the client who there it involved a transfer of real estate through the LLC and a deed was passed and money was paid and things like that but the LLC does not shoot we're talking about Oh making sure you do all the annual reporting requirements you need to make sure you do that if you don't do that then you can run into problems and your LLC can be disbanded and as I mentioned I had a client that had a real estate deed and the real estate deed was basically void and that was a big problem because my client had spent several hundred thousand dollars I'm acquiring that piece of property but his deed was no good and then there was a death and that's that's what we do tha
Thanks pericleja4 your participation is very much appreciated
- Bryant Dubiel
About the author
I've studied comparative religion at Dunwoody College of Technology in Minneapolis and I am an expert in visual anthropology. I usually feel lethargic. My previous job was ship mate I held this position for 9 years, I love talking about volunteering and jogging. Huge fan of Neymar I practice alpine skiing and collect casino chips.
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