A Limited Liability Company (LLC) is a powerful and effective entity choice for forming a business. The LLC entity provides all of the liability protection business owners need – the same protection achieved with a corporation, but it is easier and less expensive to maintain over time.
Forming your Ohio LLC
Forming an Ohio LLC is a 2 step process. Unfortunately, many people who form their own LLC, and many professionals who help people form an LLC, only complete step 1.
Step 1 involves completing the Articles of Organization and filing it with the Ohio Secretary of State. The Articles of Organization must be filed on the form provided by the Secretary of State’s office, so some people think that setting up an Ohio LLC doesn’t require any legal assistance. They complete the form and file it with the Secretary of State, and think that they’re finished with the LLC formation. This approach misses the more important part of the process – creating the legal documents that set up the LLC for its continuing operations.
Step 2 is the most critical – and most often skipped – step of the process. It involves creating the documentation showing the owners (called Members) of the LLC, as well as the legal documents setting out how the LLC will operate.
The Articles of Organization (in Step 1) does not have any information about who the Members of the LLC are. This information is handled in the Operating Agreement of the LLC (for a multi-member LLC), or in the Declaration of Sole Member (for a sole member LLC).
Learn more about the importance of Operating Agreements in our article: Don’t Lose Control of Your LLC.
If you have an LLC, and have only completed Step 1 of the LLC Formation, you need to make sure that you address the issues in Step 2. Get your Operating Agreement designed and drafted, have the ownership issues addressed and documented, and take the action necessary to make sure that your LLC will protect your assets and operate smoothly for years to come.
Hire Legacy Law Group to form your Ohio LLC
If you want to make sure your new Ohio LLC is created the right way, hire our attorneys to assist you. We have the experience to know the issues that need to be addressed, and can counsel you through the process of making the right decisions to accomplish your goals.
Our services include:
- Ohio Articles of Organization
- Member Subscription Agreement
- Membership Interest Certificates
- Operating Agreement or Declaration of Sole Member
- LLC Operations Manual
We also recommend that if you have a multi-member LLC, you do a Buy-Sell Agreement at the time you form your business. For more on Buy-Sell Agreements, read our article on Buy-Sell Agreements.
Call our office at 419-872-7670 or click here to set an appointment with one of our attorneys about setting up your new Ohio LLC.
About The Author: Richard Chamberlain
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