An LLC is a valid business structure that has gained a lot of fame during the past years because of its benefits. LLCs have become mandatory for small and mid-sized businesses since their management is easier than that of a corporation. On top of that, the usual fuss about formalities does not surround an LLC, and it offers flexibility to businesses. If you are planning of forming an LLC in Scottsdale, then here are some important things that you should consider.
1. Know Everything about LLC
Limited liability means that the owners are not personally liable to pay the creditors in default. In other forms, the creditors are paid by selling the owners’ assets after the company’s dissolution. It also has to abide by certain taxes and laws which do not apply to other company structures
2. Decide a Name for LLC
In Scottsdale, if you want to file your LLCs document, you will have to decide on a name for your LLC that is different and distinguishes itself from all the other registered LLCs.
3. Find an LLC Agent
Registered agents are responsible for collecting and accepting all the documents and tax notices. Therefore, if you hire an LLC agent, he will save you from many hassles and bring you the peace of mind that is much needed. In addition, they usually have a complete checklist for you to follow, thus making the company formation easy and convenient.
4. Consider Investors
A limited liability company means that in case of any loss or default, only the company’s assets can be used to recover the lost amount. This usually puts off the investors as they feel that their money is not secure. In Scottsdale, many people would be willing to invest in an LLC as long as the proposal is good and the prospect is bright. It is important to think from the investors’ perspective when developing the business plan and operations.
5. Fulfill the Publication Requirement
The state of Arizona requires an LLC to announce its formation and operations within 60 days of its registration. This publication must be made in a national paper within reach of a good majority of the population. This is a state law that obliges a person to disclose the formation and operation. Failing to do so might result in the dissolution of the company and fines.
6. Hire an Accountant & Lawyer
A good lawyer would take care of all your LLC’s documentation and registration process. Since there are a lot of technical requirements, it is better to have the services of an experienced person and make the process smooth. The legal requirements and drafting are, at times, very complex for a new person. The same is the case with an accountant in an LLC. The recording and documentation of all monetary/non-monetary transactions, along with their proper presentation, is very important for investors and taxes.
7. Draft an Agreement
Although this is not a direct requirement of Scottsdale laws, it is highly recommended that all the members know their responsibility and legally bind it. This ensures smoother operations of the company and improves coordination amongst the members and employees.
8. Consider Tax Options
Different taxes are also applicable to an LLC, such as licenses, state taxes, EIN, etc. One should consider these things before getting an LLC registered as according to the state laws, to protect the stakeholders, there are a lot of taxes and accountability imposed on the LLC. Employee Identification Numbers and taxes also become an important aspect of costs, so they should be discussed beforehand with a lawyer and an accountant.
These important things should be well-thought-out when forming an LLC in Scottsdale.
