Nov 22, 2017

Posted by in Business tips

Guide on how to form an LLC

Understanding business law is quite challenging and can ruin anyone’s hopes of starting a successful business. However, if you are very enthusiastic and passionate about your service or product, you will inevitably find yourself in the situation of making legal decisions that include finding an easy and efficient way of setting up an LLC or limited liability company. Apparently, this business structure provides many benefits for entrepreneurs, which represents an explanation concerning its popularity in the corporate world. Even though you have many other options at your disposal, such as partnerships and even sole proprietorships, LLC seems to combine perfectly all their advantages. The main benefit is flexibility meaning that you have the possibility to share management rights, distribute profits, choose the taxation method and transfer assets without paying any tax, which indeed makes LLC the ideal choice for a small business. Furthermore, the process of forming a limited liability company is not very difficult; it actually depends on your perspective, knowledge and determination. In addition, you will need Opprette AS along the way.

Choosing the location

The first step is to select a suitable office space while paying close attention to the location, which can be decisive for the success of your business. You have to ensure customers and employees access as well as publicity. Nevertheless, a question arises: do you intend to own or rent the space? Obviously, before making a decision you have to consider your financial situation because you do not want to use all your money before even completing the process of setting up an LLC. Moreover, you should also take into account your business needs. The cost of location varies according to each state so think smart.  

Selecting a distinctive name

The following step is to find an adequate and representative name for your company that complies with the state’s law. This requires some research but it will protect you from potential irregularities. Make sure that people will remember it easily due to its uniqueness and distinction from other competitors on the market that sell the same product or offer the same service. The law demands to add “LLC” at the end of your company’s name but this should not be a problem. At the end, you have to register the name but only after you ensure its availability in the respective state and decide if you wish to trademark it.

Articles of incorporation

This last step is more difficult because it involves handling many documents and papers. Nevertheless, you do not have to endure all the hassle by yourself when Etablere AS because you can ask for help. Someone can prepare in your place all the necessary papers like the auditory statutory if you desire. Moreover, you can work with an attorney who will review the documents in order to make sure that everything is perfect from a legal point of view, thus offering you certainty and peace of mind. You have to be aware that spending money during this process is inevitable but the result will surely give you the much-desired satisfaction.