Formation of Corporation or LLC
The filing of information to create a corporation or an LLC may be done on the Secretary of State’s website. When creating an LLC, it will need to be determined if the LLC will be a member or manager-managed LLC. Once an LLC is formed, an operating agreement should be prepared to reflect the ownership interest in the LLC and the duties of the manager or members. A single-member LLC may not protect your assets from liabilities. After the formation of the corporation, the organizational minutes need to be prepared for the directors, who in turn elect the officers and issue stock to the shareholders. A Federal Identification Number needs to be obtained and, in most cases, a Subchapter “S” election made so that the corporation’s profits will not be subject to a corporate income tax. If the minutes and the stock certificates are not issued, you may not be protected from liability of the corporation’s debts.