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Limited Liability Corporations

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LLC's!

This week's discussion is about LLC's. What does it take to form one and what are the advantages? Why might an LLC be a better form than an "S" corporation? What are the differences? What are the overall advantages to an LLC?

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What does it take to form an LLC?
First you need to choose an available business name that complies with the LLC rules within the state of the filing. The name cannot be the same name as another LLC; the name must end with the LLC designation and may not include certain words such as bank, insurance, corporation or city. These rules differ from state to state. The name of the LLC may not violate another organization's trademark (LLC.com, 2008).

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Limited Liability Company (LLC)
What does it take to form an LLC?
First you need to choose an available business name that complies with the LLC rules within the state of the filing. The name cannot be the same name as another LLC; the name must end with the LLC designation and may not include certain words such as bank, insurance, corporation or city. These rules differ from state to state. The name of the LLC may not violate another organization's trademark (LLC.com, 2008).
Second, articles of organization paperwork must be completed and filed. Some states refer to this as "certificate of formation" or "certificate of organization" (LLC.com, 2008). These articles are usually very short and simple. There are standard forms in each state which typically ask for the LLC name, address and names of all the owners. Most states require the LLC to list one person who will be the registered agent. This person will receive legal papers in the event of a lawsuit against the LLC.
Third, some states require an operating agreement. Even though it is not generally required, it is good business sense to create one. Basically, it has all the same ...

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