What is a Limited Liability Company?
An LLC or a Limited Liability Company is a business structure in the United States of America that helps small business owners to protect their private assets in tragic situations like lawsuits by separating the assets of the company as a separate individual’s accounts. It combines the features of a partnership (taxation processes) and a corporation (limited liability). If you own an LLC in Montana and got locked in a lawsuit, no one will come after your assets. It goes the same for the members of the company. llc formations montana are becoming popular in the twenty-first century as more small businesses are opting to the system for its benefits.
What are the types of LLCs?
Limited Liability Companies are of different types based on various factors. Some of these types and the dividing factors are as below.
- Single-member LLC and Multi-member LLC – Based on the number of members with power.
- Member managed LLC and Manager managed LLC – Based on the managerial power of the organization.
- Domestic LLC or Foreign LLC – Based on the location of operation and registration of the organization.
- Professional Liability Company – Based on the professional applications for an LLC formation like attorneys, lawyers, accountant, doctors, etc.
What are the articles of the organization in an LLC formation process?
Articles of organization are the documents that contain the details of your organization like the name, address of the LLC, and its members. The details of the registered agent are also needed. You should submit these articles through mail or online portal to the secretary of the State, along with the fee for approval. Once the articles of organization are approved, your LLC is legal and can operate within the region of registration.
Who is a registered agent?
A registered agent is a person through whom the vital documents such as notices, articles, summons, and others will pass on between the LLC and the State authorities. Anyone who is above the age of 18 can be a registered agent for an LLC. The right to select the agent is in the hands of the owner, and he, himself, can become one. Else, he can appoint any member of the organization or their family members as the registered agent. However, most of the small businesses will go for commercial registered agents for the services. Since the role of the agent is vital, and no errors should occur, they will pay these agents to do the job without any issues.
What is meant by an operating agreement in an LLC?
An operating agreement is a document that describes your LLC as a separate entity from your other assets. It will contain all the details of the operation and procedures within your organization. Through an operating agreement, you can define the power and rights of each member involved in the LLC, along with the share of profits to them. You can hire a professional company to write your operating agreement.