An LLC (limited liability company) protects you from losing your personal assets when your business fails to take off. It is a safer method to run a business. To be the successful owner of a LLC company, you least you ought to know is how to form a company and how to legally end it. In this blog, veteran New York corporate lawyer Hartley Bernstein explains in less than two paragraphs how to form and end an LLC:
Formation of an LLC
To form an LLC, you get into contact with the LLC division of your state government and file “certificate of organization” or “articles of organisation.” The LLC division is usually part of the office of the secretary. It is possible to form an LLC with only one person. The fees are between $100 and $800.
States usually provide you with a blank piece of paper, on which you specify a few basic details about your company. You mention details such as the name and address of your company along with contact information. When you do this, you become the “registered agent” of your company. Your task is to receive and send legal documents on behalf of the LLC. A few states require that all registered agents be listed.
Besides the articles of organization, you are required to create an operating agreement. Although the state does not demand that you find the operating agreement, there is no way you can get away without one. An operating agreement is crucial to your business as it determines your rights and responsibilities. The share of owners in profits and revenues is also mentioned in this agreement.
To learn more on LLC formation, consider a consultation with New York corporate attorney, Hartley Bernstein.
Termination of an LLC
Many states stipulate that an LLC ceases to exist the moment any registered agent decides to leave. The company cannot terminate operations until it has fulfilled all business obligations and paid back all debts. The remaining members can decide weather to continue with lesser members, or start a new LLC.
A carefully created agreement can save you from many legal products. There are buy-sell provisions in law which let you continue with your business operations without worrying a lot about legal formalities that ensue whenever a member leaves.
New York corporate lawyer Hartley Bernstein can help you create efficient termination documents.
Formation of an LLC
To form an LLC, you get into contact with the LLC division of your state government and file “certificate of organization” or “articles of organisation.” The LLC division is usually part of the office of the secretary. It is possible to form an LLC with only one person. The fees are between $100 and $800.
States usually provide you with a blank piece of paper, on which you specify a few basic details about your company. You mention details such as the name and address of your company along with contact information. When you do this, you become the “registered agent” of your company. Your task is to receive and send legal documents on behalf of the LLC. A few states require that all registered agents be listed.
Besides the articles of organization, you are required to create an operating agreement. Although the state does not demand that you find the operating agreement, there is no way you can get away without one. An operating agreement is crucial to your business as it determines your rights and responsibilities. The share of owners in profits and revenues is also mentioned in this agreement.
To learn more on LLC formation, consider a consultation with New York corporate attorney, Hartley Bernstein.
Termination of an LLC
Many states stipulate that an LLC ceases to exist the moment any registered agent decides to leave. The company cannot terminate operations until it has fulfilled all business obligations and paid back all debts. The remaining members can decide weather to continue with lesser members, or start a new LLC.
A carefully created agreement can save you from many legal products. There are buy-sell provisions in law which let you continue with your business operations without worrying a lot about legal formalities that ensue whenever a member leaves.
New York corporate lawyer Hartley Bernstein can help you create efficient termination documents.
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