FORMATION OF A LIMITED LIABILITY COMPANY
Formation of a LLC is determined by the state in which the formation is to be registered. As with corporations, the secretary of state for the state will have basic forms to use. Though corporations have a fairly consistent method of formation from state to state (because of its centuries-long existence), LLCs which are only 17 years old are formed differently in each state in the sense that the information required may be different.
At least in Colorado, the information required to file the “Articles of Organization” (which are the equivalent to the Articles of Incorporation for a corporation) is fairly straight forward.
For forming an LLC In Colorado you will need:
a. The name of the LLC (which the phrase “LLC”; “Limited Liability Company”; “Limited” (or words to that effect)
b. The address for the business;
c. The name and address of your “registered agent”. The registered agent is the person or business in that state that is authorized to accept personal service of legal notices on behalf of the business entity. Such notices may be something simple like a change in filing requirements, or it may be something more complex like pleadings in a law suit that someone has filed against the business. There are companies that make a living acting as the registered agent for corporations so the fact that you don’t live in a certain state should not dissuade you for filing in that state.
d. Whether there will be at least 1 member (that’s right. You must have a least 1 member – which you would have anyway or otherwise, why file?!)
e. Whether the company will be managed by the “members” (who you remember are equivalent to the shareholders), or a “manager” (who need not be a member but who usually
f. The name and address of the person forming the LLC (who is the person that is starting the corporation);
g. The name and address of the person physically filing the document (which need not be the incorporator); and,
h. The right to attached to the filing any additional information that the filing person may want to add.
Paragraph h is important as there are matters that should be covered in the Articles of The LLC should then plan, draft and create the “Operating Agreement” which is equivalent to the Bylaws for a corporation. This is a complex document that requires the input of your attorney (hopefully us!).