- I’m planning to go into business with two friends. Can we use LLC Express for an LLC with three owners?
- What happens after I fill out the on-line information checklist and pay by credit card?
- When is the right time to form my LLC?
- I know there are quite a few kinds of business entities, but what is the main reason why I should form an entity for my business?
- Why can’t I just file LLC papers with the State myself? It’s just like getting a dog license, isn’t it?
- Why is it so important to do this early on…After all, cash is tight in the early days of the business and I’m trying to keep start-up expenses to a bare minimum.
- What is an Operating Agreement and why do I need one?
- I live in Rhode Island and plan to start my business there. Can LLC Express handle the formation of my Rhode Island LLC?
- I’ll be providing consulting services. Anything special I need to know?
- What about home-based businesses? Are there particular legal requirements I should know about?
I’m planning to go into business with two friends. Can we use LLC Express for an LLC with three owners?
No. LLC Express is only available for single owner Connecticut Limited Liability Companies. With three people in the business, you’ll need to decide your respective rights and responsibilities in the business. For instance, how much money will each of you be investing in the business? How will the profits be distributed? Who gets to make major decisions? An on-line service can not adequately address these issues. We can assist you with this service. Send us an email at: firstname.lastname@example.org.
What happens after I fill out the on-line information checklist and pay by credit card?
We will send your LLC Express package to you (by U.S. Priority Mail) within 3 business days after we receive your completed information checklist and payment. Your LLC Express package contains your custom-prepared Limited Liability Company documents (with detailed instructions) along with tips for launching a successful Connecticut business. After you sign the LLC documents, you’ll return the signed Articles of Organization to our office in the mailer we provide. We then file your Articles of Organization with the Connecticut Secretary of State. We will advise you by e-mail as soon as your filing has been accepted by the CT Secretary of State. This process can be completed in as short as one week.
When is the right time to form my LLC?
Forming your Limited Liability Company - where does that go on your long to-do list? While it may not be the very first step you take, it should be handled early in the process. Answer the following simple questions to help you decide if now is the right time to form your LLC.
|Will you be investing money or effort in creating a logo or special design to identify your business?|
|Are you finding that potential suppliers will not provide wholesale pricing information to you unless you’re an ‘established’ business?|
|If you’re providing consulting services, have you provided one or more consulting proposals to potential clients?|
|Have you received any business income yet?|
|Do you plan to open a business bank account soon?|
|Are you trying to find suitable business premises?|
If you answered ‘yes’ to one or more of these questions, then the ‘right’ time to form your LLC is TODAY! It couldn’t be easier to get your LLC formed with LLC Express. Let us help you move your business forward today.
I know there are quite a few kinds of business entities, but what is the main reason why I should form an entity for my business?
Unless you form a limited liability entity for your business, in general, all of your personal assets will be exposed to the risks of your business. This includes your bank accounts, brokerage accounts, vacation home and your other property. If your business is structured as a Limited Liability Company, your personal assets are protected to the maximum extent possible. In general, it is the assets of the entity that are at risk, not your personal assets.
Why can’t I just file LLC papers with the State myself? It’s just like getting a dog license, isn’t it?
If you’re looking to protect your personal assets, you’ll need to make sure your LLC is properly set up and that all the organizational steps have been completed (such as adopting an : An Operating Agreement is the document that governs the legal structure of an LLC. It is similar to bylaws of a corporation). Otherwise, you can be held personally liable under a legal doctrine known as Piercing the Veil.
Why is it so important to do this early on…After all, cash is tight in the early days of the business and I’m trying to keep start-up expenses to a bare minimum.
If you don’t form a Limited Liability Company at the outset then it’s likely you won’t make the effort to change the structure later on. Once you get busy running your business, you won’t want to take the time to focus on a business re-structure. Even if you do incorporate later, it won’t provide you protection for jobs done (or contracts entered into) before you incorporate. Also, when an existing business incorporates, the owner has to open new bank accounts for the business, order new letterhead and notify all existing suppliers and customers of the re-structure. It’s a fair amount of work (and it’s one reason that business owners who start out as sole proprietors often stay that way).
What is an Operating Agreement and why do I need one for a single owner LLC?
An Operating Agreement is the document adopted by the owners of a Limited Liability Company (called members) that governs the operation of the business. The type of issues addressed in an Operating Agreement include: identifying the owners and their percentage ownership interests, identifying the amount of money that each member is required to contribute to the LLC and creating the management structure for the LLC. A single member LLC that is not properly established is particularly susceptible to a claim of personal liability under the doctrine of Piercing the Veil. Adopting an Operating Agreement for a single member LLC will maximize the LLC’s protection from personal liability.
I live in Rhode Island and plan to start my business there. Can LLC Express handle the formation of my Rhode Island LLC?
LLC Express specializes in forming Connecticut LLC’s. An LLC formed by LLC Express is structured to comply with Connecticut LLC statutes and related laws. Sorry, we can’t help you with a non-Connecticut LLC.
What about home-based businesses? Are there particular legal requirements I should know about?
You’ll want to check out your local zoning regulations to make sure your home-based business is in compliance. Also, if you live in a condominium, you’ll want to check the condo rules to make sure your home-based business is not a problem. Similarly, if you are renting a house or apartment, you’ll want to check your lease.