When you start a business, you’ll need to decide how to organize your company. One of the best places to start is by forming a Limited Liability Company (LLC). This type of structure helps protect your personal assets and reduces your personal liability if the company struggles to pay its bills or fulfill its obligations. But there are a few steps you’ll need to take to set your LLC up the right way. While your business law attorney in New York can help keep you on track, it’s still helpful to know what to expect. Here are the steps you’ll need to take to get your LLC up and running.
Choose a Name
Before you move any further along in the process, you’ll want to come up with a business name. If you’re a sole proprietor, your name can be your business name. But if you want to make your company look and feel a bit more professional, coming up with a name that can attract clients can be a good idea. Choose a name that speaks to what your company does.
Find a Registered Agent
The next thing you’ll need to do is find a registered agent. Think of your registered agent as your legal expert who can act on your behalf when receiving legal documents for your LLC. Your registered agent doesn’t have to be an attorney. You’re free to be your own agent or appoint an employee to act as one. The only stipulation is that the agent must have a New York address and a physical office to receive documents.
File the Articles of Organization and Publish Them
Once you have an agent, you’re ready to file your articles of organization and publish them in at least two newspapers in the state. The articles explain the basics about your business including its name, location, address, and the person forming the LLC. You’ll have to pay a filing fee to the state and the amount you’ll pay to publish your articles of organization will depend on the newspaper you post in.
Write Your Operating Agreement
Your operating agreement explains how you’ll run your business. Try to be thorough when writing your agreement as it can help ensure that all parties involved are on the same page. If you’re not sure if you’re on the right track, an experienced business law attorney in New York can review your agreement and help you add any necessary amendments.
Get Your Certificate and Employer Identification Number
Once you’ve filed everything, you’ll receive a certificate from the state recognizing your business and can get an Employer Identification number (EIN). The EIN is what you’ll use when filing taxes or hiring employees. It’s like a Social Security number for your company and is completely unique to your business.
Open Your Doors
Once you’ve followed these steps, you’ll be ready to open your doors and start doing what you love. Keep in mind that you’ll still want to take precautions and run your business in a way that is both profitable and able to fulfill your obligations. LLCs only help reduce your personal liability. They can’t protect you from financial strain if your business starts to struggle.
Need Help Forming Your LLC?
If the above steps feel like a bit too much to handle on your own, don’t worry. Working with a business law attorney in New York can help. Contact Gold Law Firm today to schedule a free consultation.