Friday, April 8, 2016

Frequently Asked Questions About Setting Up An LLC

If you plan to start a business at the Lake of the Ozarks, one of the first things you will have to do is determine what business entity you would like to use. Because of its many distinct advantages, more and more entrepreneurs are choosing to incorporate their businesses as limited liability companies (LLCs). If you are an aspiring entrepreneur, you probably have several questions about the process. Here are the answers to some of the most commonly asked questions about setting up an LLC, courtesy of your business attorney in Osage Beach MO.


What Does It Take To Set Up An LLC?
In order to set up a legally recognized LLC, you will have to check with the Secretary of State's office to ensure that your proposed business name has not already been claimed by someone else, and if not, then you will prepare and submit your Articles of Organization. Unless you are registering a fictitious name, you do not have to take separate steps to register the business name.

How Many People Do You Need To Set Up An LLC?
There is no requirement as to the number of people needed in an LLC. You can have as many members (owners) as you want, or you can set one up as a sole member LLC.

What Is The Difference Between A Member And A Manager?
You will need to choose if your LLC will be member managed or managed by a member. Members are co-owners of the company, as are stockholders in a corporation. The manager is the individual responsible for handling the day-to-day legal aspects of running a business. The manager can also be a member, but does not have to be.

Are There Any Limits On What I Can Name My Company?
Your company name may not be the same as (or too similar to) an existing LLC already registered within your state. You must also include something at the end of your business name to identify it as a limited liability company, such as LLC, L.L.C., LC, or L.C.

What Is An Operating Agreement?
While operating agreements are not mandatory, the are important to have, even if you only have one member in your LLC. As its name suggests, this agreement outlines key aspects of how you plan to operate your business, and it will pre-determine what steps to take if a member leaves the company or dies. Like a prenuptial agreement prepared prior to marriage, a well-drafted operating agreement can save time, energy, and conflict down the road.

What Is An EIN? Do I Need One?
An EIN is an Employer Identification Number, which is obtained through the state for tax purposes. It is usually a good idea to obtain an EIN at the time of LLC formation.

Who Can Act As Registered Agent For My LLC?
LLCs require a register agent for purposes of accepting service of process in the event the LLC gets sued. When meeting certain requirements, an owner can act as registered agent for the LLC. A registered agent must have a permanent physical address, as service of process cannot be made upon a post office box. The designated agent must be in the same state as the LLC. Sometimes it is appropriate to designate an attorney or other professional as registered agent.

Do I Have To Have An Attorney To Set Up An LLC?
No, but engaging a business attorney at the Lake of the Ozarks to assist with the creation of your LLC will provide valuable peace of mind knowing that everything has been handled correctly and accurately.

Contact O'Donnell Law Center For Help Setting Up Your LLC!
If you are considering starting your own business and would like more information about the process, contact our business lawyer at the Lake of the Ozarks. We would be happy to answer any questions you may have and guide you through the process to ensure that everything is handled appropriately. For more information about our business law services in Osage Beach MO, call our Center at 573-552-0317 or visit our website.


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Disclaimer: No attorney-client relationship is created by the publication of this blog.


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Phone: (573) 552-0317

O'Donnell Law Center, LLC
1026 Palisades Blvd. Suite 3

Osage Beach, MO  65065

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