How To Start A Limited Liability Company

A limited liability company is a company whose managers, members and owners get limited liability and tax related benefits of a S-corporation without conforming to the restrictions of a S-corporation. If you are thinking about how to start a limited liability company, then the first thing you should know about is the difference between a public LLC and a private LLC. Here, LLC stands for Limited Liability Company. A public LLC has the right to offer shares & some other securities to the common people. For example, a public LLC can publish advertisements for new shareholders. It is mandatory for a public LLC to have different people on the position of Managing Director and Chairman of the board. A private LLC may not offer its shares in the market. The Board of a private LLC should have a minimum of two members and a deputy or a total of three board members. Generally, there is no need of appointing a Managing Director but if appointed then he can also be the Chairman of the board.

Now we will provide you with some guidelines about how to start a limited liability company. First of all, the people interested in starting a LLC (there can be more than one person) must sign a common deed of foundation mentioning the date of signing. This deed of foundation should contain the Articles of Organization mentioning complete information about the price of share and other related activities. A bank statement should also be attached along with the documents and it should state that the total amount to be paid for the shares has been submitted in the bank. All the completed documents must be sent to the LLC registration office of that state in order to get your LLC registered. If you want to set up your own LLC in a different state then you can purchase a off the shelf company of that state. Doing this you will be exempted from the above mentioned registration process as the LLC will be already registered with the state. But there is still one thing left to do which is to register a name for your company different from the previous one.

After the completion of registration process of your limited liability company, you will get a registration number which will act as the identity for your LLC for future references. This number has to be mentioned on your company's letterheads and invoices. Next comes registering the name of your LLC. While selecting the name of the company you will have to follow some rules mentioned by the state in which you are starting your LLC. In the end you should also get your LLC registered for the taxes. The procedure for this varies from state to state. Hence, you should contact your state's LLC registration office for details. All this should have helped you to earn knowledge about how to start a limited liability company.