Free LLC Paperwork
You may need more than free LLC paperwork if you truly want liability protection for your company. There are many choices in making an LLC. Knowing what to choose and why the choice is made is essential to getting good asset protection. Often the free LLC paperwork you can find in some places comes with some serious strikes against it.
Sure, free is Ok if you know what you are starting with and how to refine it to obtain your goals, but… what if you aren’t sure? For instance, do you know where to form your LLC? Traditionally businessmen have been told to form an LLC in one state or another for tax reasons or for better security. If you are just starting out in business and have been listening to all the ads and promotions, you probably don’t know where to form your LLC. Free LLC paperwork will not help you make this choice.
Let’s face it, you may not have even realized there are options in this area and the options make a serious difference in your costs or ease of operation. The options will become clearer after you do a little comparison and then you can make an informed choice about what is right for your company. It is beyond the scope of this article to deal with each choice and why. If you just want a quick and dirty LLC recommendation, I suggest you form it in the state where you conduct business. The good news is that many states offer free LLC paperwork.
Strikes Against Free LLC Paperwork
Another strike against the free LLC paperwork is that you often don’t get the second most important part of the startup material. An LLC needs two main documents. It is easy to get free “Articles of Organization” forms from the state where you are locating. However, you need another document called the “Operating Agreement.” This defines how the LLC is to be run on a day to day basis. Of course, LLC Wizard has both of these documents including an audio explanation of the pros and cons of every decision you need to make.
The third strike against free LLC paperwork is that you may not be told how to get the double asset protection you really need. Double asset protection is a big deal for a small business. Most companies are structured to protect the managers and members from company problems and liabilities. However, they are not structured to protect the company from liabilities of the managers and members. The good news is that an LLC can give you this protection. To get this protection certain choices must be made in the operating agreement.
In a large publicly traded corporation, if a stockholder gets into trouble, is sued, and loses stock, it is not a big issue for the corporation. Let’s face it, one member’s stock will have no real effect on the day to day management and operation of the company. In a small business, say a two man operation, if one of the managers gets in trouble and loses his member ship interests, the whole company can easily be “lost.” In a situation like that, the double asset protection offered by an LLC is a big advantage. And the sad truth is that most free LLC paperwork does not offer this advantage,
With a correctly structured operating agreement, the LLC structure will protect the company from a member’s liabilities. To get the full picture on how to form and run a good LLC that will protect your company, take a look at the LLC Wizard. Yes it comes with some free LLC paperwork, but for a small extra fee it also provides customizable forms and a comprehensive audio tutorial so you’ll know how to use your paperwork correctly and get the maximum tax advantages and asset protection. That often means thousands of extra dollars every year that would have otherwise been lost.
