There are 3 common types of businesses in the United States: (1) Limited Liability Company (LLC), Corporation and Nonprofit Organizations. We at Upton Law, PLLC can help you with the formation of all 3 types of businesses.
To format a business starts with registering the business in the respective state that the Resident Agent resides in. A resident agent is the person or company that will receive documentation on behalf of the company such as lawsuits. The Resident Agent can be the owner of the business, but you can also hire a third-party company to be the Resident Agent of your business for a small fee.
All three common types of businesses protect the business from liability. In other words, if someone sues you directly for an injury or a faulty product then the person can attempt to collect funds from you personally and take money from your bank accounts, sell your home, or attempt to obtain a judgment from your personal assets. However, when you create a business your (the business owner) will be protected from the judgment against the company. Instead, the assets of the business may be used to collect on the judgment, such as the business bank account and the business equipment.
After the state registration, to do business in the United States and create bank accounts, secure loans or other funding, the business must have a federal tax id number (also known as the “EIN”). The business EIN is basically the business identifier like a social security number. In many instances, an Operations Agreement (for LLC) or bylaws (Corporation and Nonprofit Organizations) are necessary. These documents are used to see how the business operates; for example, where the business records are held.
Many business owners may only need help with business formations but here at Upton Law, PLLC we offer more than just assistance with the business formation. We help you protect yourself as the business owner and the business assets you are building (or are about to build!). Learn more about our business services or contact us to learn more.