Anyone who intends to form an LLC in Georgia can get a professional to take care of the whole process, or do it by following the guides provided by professionals such as TRUiC on their websites. Generally, the process of forming an LLC involves the following 5 steps.
1. Create a name for the LLC
A business name means a lot because it has to be used for branding. Therefore, the entrepreneur must take time to create a name that is catchy and also one that complies with the state naming requirements. TRUiC has a very useful LLC naming guide that helps business owners to comply with the naming requirements. The rules are also available at the Secretary of State website.
It is wise to come up with several names in case the favorite name is taken by another business. The owner must then search the Secretary of State website to determine if the name is taken by another business in Georgia. If the name is available, it must be searched again in the federal data base for trademarks to see if it has not been registered as a trademark somewhere in the U.S. Once the entrepreneur is satisfied that the name is available, he/she can reserve it, and prepare to register the company.
The entrepreneur can immediately purchase a suitable domain to make sure that no one else can get that domain.
2. Appoint a registered agent
The law requires an LLC to appoint a registered agent as part of filing the Articles of Organization. A registered agent is the professional company or individual that will receive important legal documents like service of process notices and tax forms on behalf of the LLC. The business owner can actually opt to act as his/her own registered agent, but he/she must then keep up with important dates, notices and deadlines. Also, he/she must then publicize the home address (if business is run from home), be at the address from 9am to 5pm daily and be prepared to be served legal documents in front of family and coworkers.
3. File the articles of organization
Filing of the Articles of Organization can be done by the owner or a professional LLC formation service, physically or by mail, to the Secretary of State office. A fee of $100 is applicable. Processing takes between 5 and 7 working days but it can be expedited for an additional fee. Once the articles have been filed and the LLC is registered, the business is legitimate in Georgia.
4. Create an LLC operating agreement
The next step is for the members of the LLC to create an operating agreement that defines each one's role, the ownership structure, how new members will be admitted, how members can transfer or terminate their membership, how profits will be distributed and the management structure. Other provisions can be added as long as they are aligned to the laws of Georgia. This document is very important because the members can fall back on it when there is a dispute.
5. Get an employer identification number (EIN)
The next step is to get an identification number for the company known as the Employer Identification Number (EIN) from the IRS. This is the number that the federal and state government agencies use to track the business. It will be needed for opening a business bank account, for filing state and federal taxes and for hiring employees. The application can be done online on the IRS website, by fax, by phone or by mail.
Get help!
The process of forming an LLC is easy. However, sometimes providing the right information or creating the articles of organization and the operating agreement can be daunting. That is why it is wise to get the help of professionals like those mentioned on TRUiC websites.
