Transforming a sole proprietorship in company LLC
Change your legal status as sole owner of a company limited liability company (LLC for short) is a simple process that is usually done to provide protection for a business against claims of corporate responsibility on personal property. Many services offer quick, easy and inexpensive in fulfilling this task help, or you can use a lawyer if you need additional professional help. It is usually more expensive than an attorney present your incorporation documents, but if you have a complex corporate structure or are not sure how to precede; you should hire a lawyer rather than risk making a mistake.
Instructions
Application for an LLC
- Choose a name for your LLC. Create at least three options, as each will be compared with existing corporate names to avoid duplication and other conflicts. If your business is known by a name that cannot be used as legal name, you can operate your business LLC under a figure “Doing Business As” or DBA Legal designation LLC is governed by state law and typically, is administered by the Secretary of State. If you want to form an LLC on your own or get your legal name, contact the Secretary of State.
- Decide who will be on the board and who shall be officers of the corporation. You need the numbers of Social Security, driver’s licenses, passports and other identification and residential addresses. Owners of a LLC are called members and can include individuals, corporations, other LLCs and other legal entities in accordance with the rules of your state.
- Designates a legal physical location. Check your state requirements, but usually you cannot use a PO Box as a legal address. You can use your home address, or it may be permissible to use an e-mail service such as Mail Boxes Etc. offers mailboxes with boxes closed service for their customers.
- Consultation with the Secretary of State to make sure you understand the requirements. If you’re using an online legal service, such as LegalZoom.com, My Corporation or Incorporate.com, you will be provided a questionnaire that will guide you in setting up an LLC, which will facilitate you meet the requirements. These services also make finding your legal name and publish notice of business name. The cost of using a service may vary, but will be at least $ 150. An attorney will be more expensive.
- Get your taxpayer identification number. Usually, as soon as your legal name has been defined, your LLC is registered. This usually takes less than two weeks. Once done, the state will send a state identification number that can be used to obtain a federal tax ID number, also known as Employer Identification Number (EIN English). You can request a phone number must be assigned immediately. Your EIN will allow you to open a bank account for your new legal entity. When you submit your first report taxes, you can decide whether to pay taxes as an S corporation or a regular corporation. Your accountant can help you decide which is most appropriate for your financial situation.
Tips and Warnings
- If you use a lawyer or incorporation service, you have to create corporate documents such as articles of organization and bylaws (also called Operating Agreement). There are templates available online to these two documents.
- Your application will prompt you to assign a registered agent. The registered agent is the person designated to receive communications from the State and other legal authorities for your LLC. You can act as your own registered agent or registered to use the service agent (an annual fee of about U.S. $ 150) offered by incorporation services. Your attorney can act as your registered agent, but the cost will be higher.
- The third important task you have to do in your application is to publish an ad LLC your business name in the local newspapers. Most states do require publication in at least three newspapers. Your local newspaper can help. Incorporation services can do this for you as part of your stay.
- The LLC is simply a legal concept that separates the assets of the LLC and your personal property, so once you’ve formed the LLC must transfer all the assets of your company to the ownership of the LLC to protect your personal assets from any corporate responsibility.