How to Form an LLC

Video Transcript

"When forming an LLC, it is best to consult an attorney or CPA, for rules and regulations applicable to your business. To form an LLC in your state, you must contact your Secretary of State's Office. One or more individuals may form an LLC, by filing articles of organization with your Secretary of State's office. The articles of organization must include the following things. It must include the name of the business. It must also include the address of the business, and as such, with the address of the business, this can also include the registered agent, who may be your CPA, or your attorney, who files the paperwork for you. The second thing that it must include is the office, or the principal location of the office. Additionally, the articles of organization must include a statement on whether or not the LLC is member managed, manager managed, or director managed, and number five, each specified member will be liable under provisions of the law, governing the formation, and the operation of the LLC. Other mandatory and optional content that may be included in the articles of organization, include some of the specific needs of the LLC. The LLC is considered formed when the articles of organization, have been filed with your Secretary of State's Office. Additionally, an operating agreement is also needed. This agreement enters the members of the LLC into an operating agreement, to regulate the affairs of the LLC, and the conduct of the business, while governing relationships between the members, the managers, the directors, and any officers of the LLC, if applicable. If the operating agreement is entered into after the formation of the LLC, the agreement may be stated as effective, from the day of the formation of the LLC, with the Secretary of State's Office. A single member LLC may also adopt an operating agreement. If the single member chooses to adopt an operating agreement, then they are bound by the agreement to the LLC."