It is important from a liability protection perspective that your limited liability company is formed BEFORE you conduct any business. Many times a new business owners waits too long to form an LLC. They get to a point where they need to open a bank account or enter into a business transaction and then they need their LLC formed fast! But do not make the mistake of ending up with a defective formation because of your haste.
LLC REGISTRATIONS WILL BE REJECTED AND DELAYED IF FORMATION REQUIREMENTS ARE NOT MET
Many times business owners hastily prepare LLC registration documents and submit them to the state without spending the time required to know exactly what is required. This is the last thing you should do. If a filing does not meet every requirement imposed by a state, it gets out of the normal processing flow and this will cause significant delays in getting your limited liability company organized.
In one state I know of, if the LLC name is not acceptable because it does not meet that state’s requirements, your filing gets placed in limbo in a large exceptions pile on someone’s desk so you may not even know about it for a few weeks – only to hear that you need to fix the issue and start over. Make sure you spend the time to understand all the requirements and that you prepare your documents in strict compliance with your state’s laws, procedures and forms requirements.
Requirements include determining the specific factual information required, meeting LLC name rules and regulations and appointing a proper registered agent that meets the conditions in your state. Some state are quite anal about addresses used for a business so check those as well.
If you do not have the time, energy or interest in learning what these are, retain the services of a reputable LLC formation services company that can form your LLC properly and quickly.
DEFECTIVE LLC FORMATION CAN AFFECT YOUR PROTECTION AND OTHER LLC BENEFITS
Even worse than a delayed filing is a defective LLC formation that somehow gets processed but you alter find out is somehow deficient and not in compliance with your state’s requirements. An LLC and its protection and other benefits only exist because the law provides it. Accordingly, you need a properly formed limited liability company as a fundamental and initial matter.
If it is later discovered that your LLC was not properly and completely formed, you could risk your protections and lose benefits. Get this important step done properly from the beginning. Gain peace of mind by having a law firm or experienced document filing company handle this first step for you.