LLC Creation and How to Form an LLC
LLC creation includes how to form an LLC. To start with you need LLC Articles of Organization. It is not a difficult task. The Articles of Organization document is only two or three pages long. It is basically used to provide the state with notice about your LLC creation. Most states have an LLC Articles of Organization available for free on the state website.
Once you have filed this document with the state, you are in business. However, LLC creation requires more effort and more documents if you are to get the asset and tax protection available to your LLC.
If you only have the LLC Articles of Organization and your company is sued, or one of the members is divorced or some legal action is brought against your company, the judge will not know how to rule on the issues. Often the ruling will go against you. On the other hand, if creating an LLC Operating Agreement has been included in your company formation, you will define how the Court can rule on many issues.
If you don’t file a tax election with the IRS when creating LLC, you will get the standard election. You will lose valuable tax benefits that you could have obtained. The point I am making is that while LLC creating is easy, it is important to have the knowledge to cross all your t’s and dot all your i’s.
