Limited Liability Companies - LLC formation

Company Type	Time to Incorporate	Cost
LLC	5 days	£790

An LLC is a form of Partnership which has become very popular.

This is different to a Corporation for the following reasons:

• A Corporation has Shareholders as owners. The LLC has Members.
• A Corporation has Director. The LLC has Managers.
• Annual State tax for a Corporation is around $50 and for an LLC is $100

• Director name and address.
• Principal place of business outside of Delaware.
• Nature of business.

Any profits or losses are passed to the members of the LLC to report on their personal income tax. Therefore the LLC does not pay any income taxes.

General procedures after you receive filed Articles of Organisation

• Create an LLC operating agreement, which sets out the rights and responsibilities of the LLC members.
• Issue membership certificates to members.
• Apply for EIN - Tax ID number.
• Establish a LLC bank account.
• File initial list of Managers or Members. This has to be done within 30 days after incorporation date.

LLC Operating Agreement - Long Form

To be used to establish operating procedures for a Limited Liability Corporation. Use the long form when you have numerous members and/or you wish to provide as much specificity as possible on how the LLC is to be operated. This form allows for vesting of management of the LLC in the members or in a designated manager.  If members elect to manage the Company, this agreement also allows officers to be appointed and covers various other previsions.

LLC Operating Agreement - Short Form

To be used to establish operating procedures for a limited Liability corporation. Short form typically used for single member LLC, or where specificity in the operating procedures is neither needed nor desired.

The LLC generally does not have a great many requirements for board meetings, shareholder meetings, etc. What requirements exist are typically found within the operating agreement.