what you need when meeting with an attorney about setting up an llc

Although there is no statutory requirement for LLCs to hold meetings, it may be required by the LLC's organizational documents. An LLC's organizational documents typically include articles of organization, also known as a certificate of formation, and a company operating agreement.

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What are the requirements for an LLC meeting?

LLC Meeting Requirements. An LLC’s organizational documents typically include articles of organization, also known as a certificate of formation, and a company operating agreement. The articles of organization or certificate of formation is the document that is filed with the state to officially create the LLC.

Do I need a lawyer to set up a LLC?

Technically, you do not need a lawyer or accountant for creating a LLC. If any of the above relate to you, then I would recommend you consider accountants and/or attorneys to help advise you.

How do I prepare for a meeting with my lawyer?

As you prepare to meet with your lawyer, try to locate any of the following that might apply to your case: correspondence (letters, emails, or text messages between you and the other party or otherwise relevant to your dispute) Try to gather and copy these documents before your meeting.

What should I do when adding a member to my LLC?

When bringing a new member into your LLC, numerous parts of the operating agreement will need updating. At the least, the sections covering the percentage of shares of each of the company's members, the dispensation of losses and profits, the member's capital contributions, and the voting capacity of all the members must be updated.

Which of the following are the basic legal requirements for setting up an LLC?

The 3 Must-Have Documents for an LLC Articles of Organization. The Articles of Organization — also called Certificate of Organization — is the equivalent of the corporation's Articles of Incorporation. ... Operating Agreement. ... Employee Identification Number.

What questions should I ask about LLC?

Five Questions to Ask Before Forming an LLCIn What State Should I Form My LLC? A variety of factors can determine the state in which you decide to form your LLC. ... What Will I Name My Company? ... Do I Have Investors? ... Who Will Own and Manage the Company? ... Do I Have an Accountant or Tax Lawyer?

What are good questions to ask lawyers?

Questions to Ask Your Lawyer During a Consultation1) What kind of experience do you have with similar cases?2) What would be your strategy for my case?3) Are there any alternatives to going to court?4) What are my possible outcomes?5) Who will actually handle my case?6) What is my role in my case?More items...•

What questions should I ask my consultation business lawyer?

7 Questions to Ask Your Attorney Before Starting a BusinessWhat Business Structure Should I Choose? ... What Do I Need to Know About Choosing a Name for my Business? ... How Do I Minimize My Risks as an Employer? ... What Should Be In My Operating Agreement or Bylaws? ... How Can I Protect My Intellectual Property?More items...•

Whats the difference between member managed and manager managed?

In a member-managed LLC, the owners have collective control over company decisions. A manager-managed LLC places management authority in the hands of a professional manager or one or more elected members. This choice goes to the heart of your company's day-to-day operations, so it's a good idea to consult an attorney.

What is the hardest question to ask a lawyer?

12 Tough Questions to Ask a LawyerWhat's your opinion of the probate process?Under what conditions do you recommend a Living Trust?How do I protect my children from abusive relatives if something happens to me?Can I keep my kids from controlling their entire inheritance at 18?More items...•

What you should know before you talk to a lawyer?

10 Things You Should Know Before Contacting a LawyerHave Your Documents Ready. ... Research the Elements of Your Case. ... Don't Call if You Just Have a Question. ... You May Not Speak to a Lawyer Right Away. ... Do Not Ask the Legal Support Staff for Advice. ... Don't Provide Too Much Information. ... Answer the Lawyer's Specific Questions.More items...•

How do I talk to my lawyer for the first time?

Tips for Talking to an AttorneyAlways be as honest and candid as possible about the facts of your case. ... Ask questions if you don't understand something that your attorney mentions or explains to you.Approach an attorney about your case as soon as you think you may need one.More items...•

What legal requirements are needed to start a business?

What Are the Legal Requirements for Starting a Business?Create a LLC or Corporation. ... Register Your Business Name. ... Apply for a Federal Tax ID Number. ... Determine If You Need a State Tax ID Number. ... Obtain Business Permits and Licenses. ... Protect Your Business with Insurance. ... Open a Business Bank Account. ... Consult the Professionals.

Who should I talk to about starting a business?

5 People You Should Talk With Before Starting a BusinessYour spouse. One of the first people you should talk with about this new venture is your spouse. ... A lawyer. Starting a business involves a few legal hoops, so you'll want to talk with a lawyer. ... An accountant and trusted advisor. ... A business coach or mentor. ... A banker.

What are good questions to ask when starting a business?

17 Questions You Should Ask Yourself Before Starting A BusinessWhy do I want to start a business? ... Can this business idea make me money now and in the future? ... Who is my target audience for my business? ... Who are my competitors? ... What is your USP? ... How will I market my business? ... How will I price my products?More items...•

What happens after an LLC is approved?

After the LLC’s formation documents are filed and approved, the state will issue a certificate or other document that confirms that your LLC formally exists. Once you’ve received the certificate, you can take care of business matters like obtaining a tax ID number and business licenses and setting up a business bank account.

Why do small businesses have an LLC?

Many small business owners decide to set up an LLC for the liability protection it provides. An LLC, or limited liability company, exists separately from its owners (known as members), and the owners are therefore not personally responsible for business debts.

What is a registered agent in an LLC?

A registered agent is a person who agrees to receive lawsuits, subpoenas and other official documents on behalf of the LLC and to pass them along to the appropriate person at the LLC.

What is LLC in business?

An LLC is a popular and flexible business option that works well for many small business owners. In most states, LLCs are relatively easy to set up and maintain. However, it’s important to fill out the paperwork properly and have an operating agreement that defines the members’ rights and responsibilities.

Is an operating agreement required by law?

The operating agreement typically isn’t filed with the state and may not be required by your state’s laws. However, it is an important way for business owners to define their rights and responsibilities and minimize future disagreements.

How to manage an LLC?

Management of the LLC can take many different forms, particularly if there are multiple members are investors. Generally, management of an LLC will fall into one of the following categories: 1 You are the sole member, with no investor, and you fully manage the company. 2 The LLC has multiple members (possibly including an investor), but all the members agree that one person manages the company. 3 The LLC has multiple members (possibly including an investor), all the members agree that one person manages the company, but that person needs their consent before taking certain actions that are outside the ordinary course of business (for example, borrowing money, selling the company, declaring bankruptcy, and the like). 4 The LLC has multiple members (possibly including an investor), and all the members agree to manage the company together, perhaps by forming a board of managers (which is similar to the board of directors of a corporation).

What are the advantages of an LLC?

One of the attractive characteristics of an LLC is the potential pass-through tax treatment. Having an accountant or tax attorney advise you during and after the LLC formation process will allow you to best take advantage of this benefit.

Can an LLC have multiple members?

The LLC has multiple members (possibly including an investor), all the members agree that one person manages the company, but that person needs their consent before taking certain actions that are outside the ordinary course of business (for example, borrowing money, selling the company, declaring bankruptcy, and the like).

Can an LLC have only one investor?

Having investors who expect to make returns on their investment can add complexity to your LLC in many ways. For example, if there is only one investor, then that person may want to be fully repaid before any other owners ( called members) receive distributions on their ownership interests (called membership interests).

Can I register my business online?

You might be able to register online with your state or use an online service to register your business, but it might be a good idea to use an attorney if your business is at all complicated. Corporations or S corporations must register with the state as well.

Do I need an attorney to start a business?

The simpler your business, the less you'll need an attorney. A sole proprietorship is the simplest business form. It doesn' t require that you register your business with your state, so no, you probably don't need an attorney ...

What to know before meeting with a lawyer?

Before you get too far into a meeting or conversation, the lawyer will want to know about any possible conflicts of interest that might prevent him or her from ethically representing you.

What do lawyers want to see?

In addition to learning about you and hearing your narrative, your lawyer will also want to see documents and evidence, both for informational purposes and to help assess the strength of your case. Obviously, the nature of the evidence will vary dramatically from one type of case to another. As you prepare to meet with your lawyer, try ...

What are the goals of a lawyer?

Typical goals might include: review and provide comments on a contract or legal document. draft a will.

What documents are used to dispute a contract?

contracts (such as employment agreements , leases, promissory notes, and the like) financial documents (for example, if you'll be drafting a will or starting a company) correspondence (letters, emails, or text messages between you and the other party or otherwise relevant to your dispute)

How to respond to a legal complaint?

respond to a legal complaint, lawsuit, or threatening letter. research whether you have a meritorious legal claim against another person or entity. draft a legal complaint or demand letter to another person or entity, or. negotiate a lease, contract, or other agreement.

What to include in a dispute narrative?

Some important details to include in that narrative include: names of the key players in your dispute. date the dispute or problem began. type of the dispute (harassment, contract, divorce) key events of your dispute, including a "who, what, where, when and why" narrative, and. current status of your dispute.

How does an LLC lose its liability protection?

The main way in which an LLC can lose its liability protection is through a lawsuit that seeks to "pierce the corporate veil.". This descriptive language refers to a creditor's ability to pierce the liability shield of the LLC and hold individual members personally liable for the LLC's wrongful actions.

Why is LLC so popular?

The limited liability company (LLC) has become very popular because it combines the limited liability of a corporation without the same strict corporate formalities. Holding meetings is an important part of owning an LLC but it is not a requirement.

What are the factors considered in veil piercing litigation?

Although fraud and commingling of personal and business assets are the main factors considered by courts in veil piercing litigation, failing to observe company formalities (such as holding meetings) has also been an important factor in determining whether to hold members personally liable.

Why is it important to have a formal business entity?

One of the most basic advantages of having a formal business entity for entrepreneurs is liability protection. Most business owners would rather focus on running their business instead of stressing out about the formalities of their business entity. However, certain formalities are necessary in order for business entities to shield ...

What is an article of organization?

The articles of organization or certificate of formation is the document that is filed with the state to officially create the LLC. The company operating agreement is an agreement among the owners of the LLC and is the company's governing document. Generally, a failure to hold meetings will not result in a loss of liability protection ...

Why are formalities necessary for a business entity?

However, certain formalities are necessary in order for business entities to shield the owners from liability. Traditionally, the corporation was the entity of choice among business owners concerned with limiting their liability.

Do LLCs have to hold meetings?

LLC Meeting Requirements. Although there is no statutory requirement for LLCs to hold meetings , it may be required by the LLC's organizational documents. An LLC's organizational documents typically include articles of organization, also known as a certificate of formation, and a company operating agreement.

How to create LLC?

There are several options to create an LLC: 1 to hire a Lawyer/CPA 2 to use independent filing service 3 to file it yourself at the SOS portal.

What is LLC in business?

A company such as LLC is just an organization and facilitates the business. It is not too much work, just have to remember to pay your tax and file tax forms, if you have a company with no active business. Like they say, easy come, easy go. Anything you can get for no cost have literally no value.

Can you convert an LLC to a C-Corp?

Quick note: It is possible to convert an entity from a LLC to a C-Corp. It can be a pain to do this, but it can be accomplished, so don’t worry if you are already formed as a LLC, you can change it later on – we’d recommend you plan to do it in conjunction with an outside financing round as it is not a cheap process.

What to consider before adding a new member to an LLC?

Prior to adding a new member to your LLC, you should fully consider the consequences and benefits. For instance: A new member can offer much to grow your LLC, but his presence will also lower the profit percentage of all the current owners. Additionally, in a member-managed LLC, a new member will add one more voice that must be heard, ...

What to update when bringing a new member into an LLC?

At the least, the sections covering the percentage of shares of each of the company's members, the dispensation of losses and profits, the member's capital contributions, and the voting capacity of all the members must be updated. Because an oncoming member will receive a stake of the corporation, the shares of current members' distributions, losses, and profits will be changed, and any rules in the operating agreement related to the current members' fiscal interests must be adjusted.

What is an amendment to an LLC?

Once a decision has been reached regarding the percentage of the new member's share, an amendment to bring the oncoming member into the LLC should be prepared for addition to the operating agreement. On this amendment, there should be listed the new partner's name, percentage of stake in the company, capital contribution, and percentage of losses and profits she will be allocated. Once this is done, a vote should be held concerning the amendment in accordance with the process in the operating agreement.

What is the operating agreement for LLC?

The operating agreement that governs your LLC should lay out the process of adding a new partner, including how the members vote on the issue. If it does include this information, following the process is important, as it shows the independence of your organization and its willingness to abide by its own rules.

How many members does an LLC have before adding a new member?

Usually, as long as your LLC has two members prior to a new member being added, the income tax status of the LLC will not change by bringing on a new partner, and there will be no need to contact the IRS.

What to do if you don't have an operating agreement?

If you lack an operating agreement, the state in which you set up your LLC has rules outlining the required steps for bringing in another member, as well as the documents that need to be submitted or amended by law.

Why add an additional owner to an LLC?

Adding a member to an LLC is an important step in many growing businesses, and there are many reasons to bring an additional owner to your LLC, including adding a business partner, adding capital in order to expand or to reward an employee for his or her hard work and dedication. Bringing an additional owner to your LLC means you'll have an ...