What to know about starting an LLC

What to know about starting an LLC

On Behalf of | Oct 28, 2020 | Business & Corporate Law |

North Carolina law generally permits you to structure your business as a limited liability company (LLC). There are many benefits to creating an LLC, such as shielding some or all of your assets from being seized if a customer or employee files a lawsuit. The process of creating your LLC can take as little as an hour.

Obtain and complete organization paperwork

The state will require that you submit a document containing basic information about your LLC. In most cases, you will need to provide the name of the company, the names of its members and the name of the agent who will receive documents on behalf of the company. The company name will typically have to include LLC at the end to comply with state law.

You will also need to state the company’s address as well as the purpose for creating your LLC. A filing fee may also need to be included as part of the application process.

Don’t forget to create an operating agreement

While this is not required by law, it is rarely a good idea to run a company without an operating agreement. This is generally true whether you are the only person who owns the company or if the company has multiple owners. The agreement can specify how profits are divided or the procedure for putting more money into the company.

Putting an agreement in writing may help to prevent conflicts between partners that might put the company itself in jeopardy. If you are working with friends or family members, avoiding conflicts at work may avoid conflicts in your personal life.

If you are looking to start a company, it may be a good idea to consult with a legal professional who understands corporate law. They may be able to help you craft an operating agreement or other paperwork that may be necessary to run your company to its fullest potential.