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The Way – How you should (probably) set up your limited liability company (LLC) in 3 Easy Steps

So, you decided to start a business, and somewhere along the way you heard that starting a limited liability company (otherwise known as LLC), is the way to go. Then you started doing some research (thank you, Google), and realized there are a million and one ways to set up LLCs, and now you are buried in a never-ending black hole of information with no end in sight. Don’t worry. We are here for you. Although there are a number of choices available when selecting your business entity (including LLCs), for the majority of you burgeoning entrepreneurs, this is the way.

DISCLAIMER: THIS IS FOR SETTING UP A SINGLE-MEMBER LLC – THAT MEANS THERE IS ONLY ONE OWNER. IF THERE IS GOING TO BE MORE THAN ONE OWNER OF THE BUSINESS, YOU NEED SOME ADDITIONAL DOCUMENTS. LOOK FOR ARTICLES ON THAT IN THE FUTURE.

 

Step 1:  Complete and file Articles of Organization with the Ohio Secretary of State. The Articles of Organization must include:

a. The name of your company which must be different from every other name on file with the Ohio Secretary of State, and must end with “LLC” (for example, Smith Construction LLC); and

b. The name and address of a Statutory Agent who will receive your legal mail (Pro Tip: Lawfox can be your Statutory Agent).

Yes, you can complete step 1 using Lawfox 

Step 2: Receive your approved Articles of Organization back from the State

Once you receive your approved Articles of Organization back from the State (it might take a few days), secure the tax identification number (also called an EIN) for your business. You can do this for free on the IRS’s website (available here https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online or here https://sa.www4.irs.gov/modiein/individual/index.jsp). You will receive the EIN once you complete the IRS questionnaire. Print it out and save it.

The IRS will mail you an actual letter with your EIN as well, but it may take awhile. Store the EIN printout (and letter once your receive it) in your Company Minute Book (more on this below).

Step 3: Complete your Company Minute Book, which will include the following documents:

a. Operating Agreement –

b. Initial Organizational Minutes

c. Membership Interest Certificate

d. Articles of Organization – Approved by the State of Ohio

e. A copy of your EIN Number printout (and letter from the IRS once you receive it).

And of course, the Operating Agreement, Initial Organizational Minutes and Membership Interest Certificate are available here at Lawfox.

Take your Company Minute Book to the bank to open your company bank account. They will want to see your documents showing you as the owner of your company and the EIN (the printout should work, even if you do not have the actual IRS EIN letter yet).

Boom! Your LLC is set up.

While this scenario is not perfect for everyone, for the majority of you new business out there, this should allow you to create your LLC easily and affordably, so you can start doing business.

Good luck!

LF

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