You are launching your startup! After reviewing the legal structures available, you decided on the LLC structure for your venture and have filed your Articles of Organization with the state. Now what? The following is a list of six items you, as a founder, should consider addressing to enable your entrepreneurial quest when launching and funding a startup:
- Adopt an Operating Agreement. Operating Agreements are agreements among the Members of Limited Liability Companies (LLCs) which govern the business and delineate the Members’ voting rights, managerial duties, rights and responsibilities and outline their financial rights and obligations.
- Secure a Federal Tax Identification Number. The Federal government requires an account number for administration of your company’s tax liabilities. They are also required to establish a bank account. This number is known as the Employer Identification Number, (EIN). The assignment of EINs is managed by the IRS. EINs may be applied for directly, on-line, through the IRS. Note that some states also require account numbers.
- File foreign qualifications in the states where your company intends to do business. If you desire to do business in a state outside of the state in which you filed your Articles of Organization, you will need to register your LLC’s name to conduct business in that state.
- File DBAs (Doing Business As) or “Assumed Names” for any name under which you plan to do business. Assumed Names or DBAs are required to be registered in each state for all names under which you expect to conduct business.
- Obtain any required business licenses for the business you will be operating. Note that the licensing requirements for different types of businesses may vary amongst localities.
- Reserve an Internet Domain Name for use by your company. A domain name is required for all internet sites and represents the breadth of your company’s dominion of authority or control within the internet. From a marketing standpoint, the entrepreneur should seriously consider addressing this issue simultaneously with the establishment of their company’s name.
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Addressing these items when launching and funding a startup not only serves to establish an appropriate foundation for the startup’s growth, development and financing but will likely eliminate delays, fines and extra costs related to completing them at a later time.
Note: The author is not an attorney and FundingSage is not a law firm. FundingSage’s employees do not provide legal advice. We recommend that you seek the services of an attorney if legal advice is required.
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