Start An LLC, It Is Not Even The Beginning
Disclaimer first: I’m not an attorney and I do not offer legal advice nor do I possess formal legal training. The information provided in this article is not legal advice, but may include general legal information given without any warranty of any nature. If you have legal questions, or have a matter that requires legal advice, please contact an attorney immediately.
At some point you’re going to form an Samoa or incorporate. Sometimes this happens when you’re just starting up other times it happens after you have been running you business for a while. Either way when you start an LLC there are certain things you need to do to ensure that your LLC gives you maximum protection.
You need to hold the meeting of formation this where you actually start an LCC. This meeting covers what the LLC is being formed for. Things that should be discussed in this meeting cover things like LLC ownership, LLC voting rights and LLC operations.
I strongly recommend finding an attorney who is experienced in forming LLCs and corporations to help you through this vital time when you start a LLC. Each LLC is a unique entity spending a little extra money at this point in time will save you boat loads of money and time in the future. I really cannot stress this enough. There are so many companies offering “Start an LLC for only $59!” “Incorporate For Only $99!” With these services you get what you pay for. Not much. I think a reasonable price to have an attorney do all the work for you to start an LLC or corporation is around $1,500.00. I’ve spent close to ten thousand dollars to start an LLC. It then turned into a business that eventually sold for over $5 Million dollars so the price wasn’t that much in the big picture.
The real power and protection comes from your LLC Operating Agreement or Corporate Bylaws. And the proper ongoing corporate formalities such as regular board meetings that have been documented and passing resolutions two of the most overlooked corporate formalities.
So spend the time and the money before you start an LLC to get a solid operating agreement or bylaws drafted by an attorney.
I know that a lot of people don’t have huge sums of cash to start an LLC and fund their business and pay for there living expenses so they end up cutting corners. One option is to go with a more generic LLC operating agreement or corporate bylaws and keep impeccable corporate records. When you do this amending the LLC operation agreement or corporate bylaws will happen along with passing resolutions.
Once you have had your meeting to discuss the formation of your LLC this is when you file with the state to start an LLC. If you are working with an attorney they usually handle this for you. If your working with an attorney and money is tight ask if they can prepare your LLC operating agreement or corporate bylaws and let you submit them to the state. This will save you some money and you can spend money on getting a stronger LLC operating agreement.