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Creating an LLC: What you need to know

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The Limited Liability Corporation, or LLC as it is more commonly referred to,has been around since 1977. It’s a popular option when forming a business. If you are ready to formalize your business, it may be an option you are considering.

To form a Florida LLC, there are several things you need to do. Taking the right steps will ensure there are no issues and mistakes along the way. Keep reading to learn what you need to do to properly establish your business as an LLC.

Determine who the registered agent is going to be

All LLCs, and corporations too, require a registered agent. This is a business or a person that is able to receive documents during traditional business hours and that are located at a specific, legal, physical location in the state where the business is being registered.

If you are planning to be at your business during normal business hours, then you can elect to be your own registered agent. Doing this can help you save money.

Acquire your EIN or tax ID

While this one may seem obvious, it is important to mention it. You must have an EIN number to establish an LLC. The good news is, getting one of these is simple. You can even do it online. This process takes only three to five minutes and then you will be done with this step. You do not have to pay anything to get this number!

Select a name for your LLC

You have to choose a name for your LLC that complies with the rules of your state’s LLC division. For Florida, the following guidelines must be followed:

  • Choose a name that isn’t the same of another LLC that’s on file with the LLC office.
  • The name has to end with the LLC designator.
  • The name can’t include any prohibited words, such as insurance, bank, city, etc.

In addition to following the LLC naming rules established by the state, you also must ensure your name isn’t violating any other businesses trademark. Once you have found a name that meets the legal requirements and that is available, you don’t have to register it with the state. In most cases, by filing your articles of organization, the business name will be registered automatically.

File the articles of organization

After you have selected a name, you need to prepare and then file the “articles of organization” with the Florida LLC filing office. The articles have to include the following:

  • The name of the LLC and the address
  • The signature of the registered agent of the LLC
  • The names and the addresses of the managers of the LLC
  • The date of the LLC (if different from the filing date)

In the state of Florida, the fee to file the articles of organization is $125. You have the option to file them by mail or online.

Create your operating agreement for the LLC

While the operating agreements must be filed with the LLC filing office and they are typically not required by state law, it’s essential you make one. In this agreement you need to outline the rules of ownership and the operation of the business. This typically includes information such as the rights and responsibilities of members, how it will be managed, how losses and profits are allocated and more.

While the process of forming an LLC may seem a bit overwhelming at first, the process doesn’t have to be. Use the tips and information here and if possible, hire a professional for help. This will help ensure that everything is done properly.

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