Business Entities Filings With The State
Below is a MRR and PLR article in category Reference Education -> subcategory Legal.
Business Entities: State Filing Requirements
Overview
Forming a business entity is essential for nearly all small businesses to minimize exposure to civil liability. This process involves filing specific documents with the appropriate state authorities.
State Regulations
Business entities are governed by state law, not federal law. When establishing an entity, it's crucial to consult the Secretary of State in your jurisdiction to understand the filing requirements. While some states provide clear guidelines, others may present a more complex process. All states, however, have websites for their Secretary of State offices where you can find the necessary information.
Corporations
To form a corporation, most states require filing articles of incorporation. These typically include the corporation's name, the number of authorized shares, the registered agent's name and address, and the incorporator’s name?"usually the person signing the document. After filing with the Secretary of State, you will receive approval. In most states, there is no need to file bylaws, organizational minutes, or shareholder information.
Limited Liability Companies (LLCs)
Limited Liability Companies are straightforward structures initially introduced by Wyoming in 1977. Similar to corporations, LLCs require filing Articles of Organization, which generally include the same information as articles of incorporation. Many states require the use of a pre-printed form for these articles, so check your state’s specific requirements.
DIY or Professional Assistance?
If you're a sole proprietor with a solid understanding of the process, you might manage the filings yourself. However, if you're uncertain, seeking professional help is advisable.
For businesses with multiple owners, involving an attorney is recommended to prevent potential disputes. It's not uncommon for disagreements to arise over filing preferences, where one owner might be accused of structuring the filing for personal advantage.
In conclusion, forming a business entity correctly is crucial in protecting your business from legal liabilities. Ensure you familiarize yourself with your state’s specific filing requirements to navigate the process smoothly.
You can find the original non-AI version of this article here: Business Entities Filings With The State.
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