What Legal Documents do I need for an LLC startup? If you’re starting a new limited liability company, there are quite a few steps you’ll need to follow. However, they’re all fairly simple when broken down into their simplest components.
Articles of Organization
The first step to setting up your LLC is to draft and file your articles of organization with the Secretary of State. Your articles are pretty simple to draft. However, you need to perform your name search first.
If you form an LLC, you need to obtain an EIN from the IRS. EINs are free, so you shouldn’t have to pay for them. I hate it when places try to upcharge you for an EIN even though the application is free and super simple.
Next up, you need to get your business licenses in order. North Carolina has hundreds and hundreds. Therefore, you need an easy way to find which ones you need and apply. To find out what licenses you need, call (800) 228-8443 or check out their website at https://edpnc.com/start-or-grow-a-business/start-a-business/license-permits/.
LLC Startup Operating Agreement
After you’ve gotten your Articles of Organization approved by the Secretary of State, you need an operating agreement. If you’re a solo owner, you don’t need much to make an operating agreement. If you have co-owners, you need to include all the ownership terms and how to resolve disputes that might come up.
The number one thing I see that ruins businesses is partner disputes. They can end up costing you everything if your operating agreement doesn’t cover what to do.
You have to setup withholding accounts for your tax payments. As a new business owner, you’re required to withhold incomes taxes for yourself and for your employees.
Insurance for an LLC Startup
Businesses should have insurance. All businesses should have a general liability policy. Certain professions like doctors, lawyers, and CPAs need to have liability insurance as well.
New Hire Program
If you’re hiring employees, you also need to register the employees with NC’s New Hire Program. With new hires, you also need unemployment insurance and workers compensation insurance.
Standard Service Contracts
Finally, your business needs its standard service contracts. Don’t rely on oral contracts or minimal quotes to outline your terms.