How to Form an LLC (Oceana's Legal Almanacs: Law for the Layperson)

The Limited Liability Company, commonly referred to as a LLC, has become a popular organizational structure for small businesses that want to combine the limited liability advantage of incorporation with the pass-through taxation feature of the sole proprietorship or partnership. This almanac, written in a user-friendly fashion, discusses the nature of the LLC and sets forth the basic requirements for setting up an LLC, which includes naming your business, completing your LLC Articles of Organization, filing your paperwork and paying your fees. This almanac also discusses the creation of an LLC operating agreement which sets forth the financial and managerial rights and responsibilities of the members of the LLC, including capitalization, allocation of losses, distribution of profits, and dissolution of the LLC.