A decision you must make when starting a limited liability company is whether your LLC will be member-managed or manager-managed. Though you may change your mind later, it is better to think about your preferred structure at formation rather than needing to amend your filings. Whether you start an LLC as member-managed or manager-managed depends on what level of authority you want your members to have in the business.
Adding a member to an LLC is straightforward, but there are slightly different considerations when you add a new member to a single-member LLC. You will not need to re-register your LLC with the state, but you may have to file an amended Articles of Organization.
Though not required, you should also amend your Operating Agreement to clarify the relationship you have with your new partner. Due to the flexibility of the LLC structure, your new partner may invest any amount of time or money into the LLC and receive any share of the LLC you two deem agreeable.
Owners of home-based LLCs may feel tentative about providing their home addresses as the primary address of their LLCs. As a protection mechanism, some home business owners operate with a post office box, or PO box, as the primary address. There is no restriction preventing an LLC owner from using a PO box as the LLC’s business address.
Rent the PO box before you form your LLC. On your Articles of Organization form, write the PO box on the line requesting the LLC’s primary address or business address.
Your registered agent or resident agent must have a street address in the state, however. A PO box is not an acceptable form of communication for the LLC’s agent.
What paperwork you need to start a new LLC will vary depending on the state in which you register your limited liability company. Fortunately, although limited liability companies exist purely in state law, there are some uniform laws among the states that result in similar LLC registration practices no matter where you live.
Setting up a limited liability company is similar to incorporating a business. Both business structures offer you limited liability, but the LLC is much simpler to form. Because the method of company formation you select has a large impact on the function and growth of your business, ensure that the LLC is the appropriate entity before beginning the process.
The basics of how to start an LLC can be summarized in five steps: