Scholars Corner: What to Know About Setting Up an LLC

or one or more of the elected members. Okay. So this choice goes to the heart of the company and it goes into the day to day operations of it. So it's a good idea to consult an attorney. Right, if you're not sure, always go back and consult an attorney. Okay, just so that you're putting yourself in a place where you can win. You don't want to start out and then put some stuff on it and you got to go back and correct some mistakes and you like, ugh, I gotta file papers with this state and do this

with that. Okay. So another key feature of a manager managed company is that you can appoint either the owner or a member or an outside professional manager or management company to be the decision maker for the business. Now, this can be relevant if you have investors in your company, right and they want like a backseat role. They don't want to be upfront, they don't want to make decisions,

they don't want to have all the responsibilities. Maybe they just gave you the money and you're going to pay them or whatever, and now you have to do all the work. Okay, So they could just simply take a pass and let somebody else do all the hard work, and that person probably is gonna be you. All right, be careful you know who you elect to be in this position, because they have control over everything, over the finances, over all the legal matters, signing contracts, buying assets like property,

and hiring employees. Okay, So definitely make sure that when you're structuring this out you think about all those things. Elect somebody who you trust or company that you know. You designating this role. Make sure that you do your due diligence on these people. Because they're making somebody buy some property and I don't know nothing about it, and I'm one of them people. I'm gonna be looking at

myself crazy. Okay, don't be a person. Make sure that you put people in place who you trust, do your due diligence. Again, if needed, consult an attorney about how you should set up your company's management style. All right. So LLCs must have a registered agent and the state they plan to file. So if you're planning to file in you tall. I know it's random but stick with me. Your registered agent must file in you tall. If you're filing in Washington state, Yep, you guessed it. Then you

must have a registered agent in Washington. Okay. Now, because you need this when you file your articles of organization. You need this information when you're filing your articles of organization. You need to secure your registered agent before you can put this on your paperwork. Okay, So don't fill out the paperwork and then get to that spot and you're sitting there looking goofy like, yeah, I don't know who that is. Have that done first and then add that

to your paperwork. Okay. Now, the role of a registered agent is to receive legal and or official documents for your company during the business business hours. All right. Now, you may accept this role. You can swear yourself into this role, right because some people do it, especially if their business is in the same city I'm sorry, the same state that they're in. They elect to be this person,

or you can hire professional services to do this. Now, if you take on this role, it doesn't cost you anything. It's free for you to serve in this capacity. However, if you are hiring a service, obviously you got to pay them some coins. Okay, So it's something to think about. Some people are like, yeah, I want to go to a state where I gotta pay little texes. That's good, but you know, you gotta have a registered agent, especially if you're not in that state, and they and then

and then and then you gotta pay some money. Okay. So just things things to think about, right. You know, remember if you're starting your business in another state, again, gotta have your registered agent in that state.

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agent during normal business hours. Although the registered office is not required by the entity's principles, you know, place of business. The registered office may not be solely a mailbox service or a telephone answering service. So you got to have a real person to be sitting there, don't business hours, okay, and ready and LLC is required to maintain a registered agent and a registered office address in Texas. If the registered agent or registered office address changes, it's important to

follow a statement. Now, we got to talk about statements, okay, with the Secretary of State to affect a change of the certificate of formation. Still, to maintain a registered agent and a registered office may result in an involuntary termination of your LLC. I'm not playing with nobody, so y'all better not play with them. Okay. I make lots of jokes and I take light to a lot of stuff,

but this is big on serious, okay. And if you want to read more about Texas, because we do have Texas people out there, I can drop that the link where I got this from inside of the study hall. Now this is just one example, okay, So make sure that you read the requirements of your state I cannot

stress it enough. Make sure that you read it. And if you like me and you got a problem, get a string or something and put it around your finger like that right that way, when you go to start clicking on stuff, you already know that you got to take your time and read some things. Okay, that's just how my brain is set up, all right. Another thing that you're gonna need they're gonna ask you is, oh well, the duration of formation that lets you state how long

that you plan to be in business. It could be one year, two years, ten years, or if you plan on being a business for AVI. Okay, they're gonna ask you. So you need to make sure that you put that

on this form. Don't skip that all right. Now, Many people choose not to set up, you know, the formation of their business themselves, and that's okay, because if you don't have the time, if you ain't got the patience, or if you ain't got to bring with all, you got to put some strings on your finger to remember stuff. That's totally fine. So whoever forms let me pullum listen.

Whoever forms your articles, right, whoever forms the business and files you know, the articles of organization will need to be named on your LLC as the organizer. So if you don't set this up with the state and somebody else does it for you, they will be listed as the LLC's organizer, right because somebody needs to be responsible for putting all this together. So basically, who fouls you know, fills out the form and submit it for you. That's that's all that person is. Okay, and I'm gonna show

you a free service to get that done. You can do this yourself again, or you can hire somebody. Okay, it's totally up to you. Now there are whole companies out there just waiting to submit these documents on your behalf. Okay, So if you can learn to do this work, you can actually offer it as a service. Right, So if there's companies out there that are offering this as a service, you don't have to have seven different streams of income.

You can take this one business and make this an offering as a stream of income if you perfect this, you know, setting up LLCs and things like that. People do this all day long. Okay, so monetize what We're gonna monetize everything. Okay, you definitely could do this. All you gotta do is read and if you don't feel like reading, your brain is scattered a little bit like mine, Just tyler string around here like so and then get yourself together. Okay.