A limited liability company, or LLC, is a type of business organization in the United States and North Carolina that offers limited personal liability to its owners in many cases. This limited liability is a major reason why LLCs are gaining popularity as a legal classification for small businesses.
An LLC is formed by filing articles of organization with the secretary of state in the state where the LLC will operate. The owners of an LLC are called members. In some states, LLCs may be formed for any lawful business purpose, but in other states, there are restrictions on what types of businesses may be organized as LLCs. In North Carolina, there are no restrictions on what types of businesses can register as LLCs.
LLCs are governed by state statutes and the operating agreement of the LLC. The operating agreement is a contract among the members that sets forth the rights and duties of the members and the LLC.
Advantages of Registering as an LLC
An LLC has several advantages over other types of business organizations, including:
- LLCs offer limited personal liability to their members. This means that, in most cases, the member’s assets are not at risk if the LLC is sued or owes money to creditors.
- LLCs are not subject to double taxation. This means that the LLC itself does not pay taxes on its income. Instead, the members of the LLC pay taxes on their share of the LLC’s income.
- LLCs offer flexibility in how they are governed. The members of an LLC can choose to have the LLC governed by a board of directors, but it is not necessary. The members can also choose to have the LLC governed by the state’s statutes or by the operating agreement.
- LLCs are easy to form and maintain. There are no special requirements for forming an LLC, and the LLC can be maintained with minimal paperwork.
- LLCs offer flexibility in how they are financed. The members of an LLC can choose to have the LLC financed by equity or by debt.
- LLCs are not subject to many of the restrictions that are imposed on other types of business organizations. For example, LLCs are not required to have a formal board of directors or hold annual meetings.
- LLCs offer flexibility in how they are owned. This means an LLC can be owned by one person, by a group of people in the form of a partnership, or by a corporation.
- LLCs are easy to dissolve. If the members of an LLC decide to dissolve the LLC, they can do so easily by filing articles of dissolution with the North Carolina Secretary of State’s Office.
Requirements for Forming an LLC in North Carolina
If you decide to form an LLC in North Carolina, you’ll need to appoint a registered agent. A registered agent is a person or business that agrees to accept legal documents on behalf of your LLC. The registered agent must have a physical address in North Carolina—P.O. boxes are not allowed.
There is no age requirement for registering an LLC in North Carolina. Moreover, Member/manager names and addresses are not required to be listed in the Articles of Organization when forming an LLC in North Carolina. However, it’s a good idea to keep this information up to date in your LLC’s records. If there are any changes, you can update the information in your Articles of Organization and keep your LLC in good standing.
Additionally, there is no residency requirement for members or managers of LLCs in North Carolina. However, if you have out-of-state members or managers, you’ll need to register your LLC as a foreign LLC in those states.
When you’re ready to form your LLC, you’ll need to file the Articles of Organization with the North Carolina Secretary of State. The filing fee is $125. You can file online, by mail, or in person. Once your LLC is formed, you’ll need to comply with all state and federal laws, including paying taxes and filing annual reports.
Do You Need to Hire a Lawyer to Form an LLC?
If you’re thinking about forming an LLC in North Carolina, you may be wondering if you need to hire an LLC lawyer. The answer is maybe. While you technically can file the paperwork yourself, there are a few reasons why you might want to consider hiring an LLC lawyer to help you with the process.
An LLC lawyer can help you make sure that you’re completing all of the necessary paperwork correctly. This is important because if you make a mistake on your Articles of Organization, it could delay the formation of your LLC or even cause it to be rejected. Moreover, an LLC lawyer can also help you with the ongoing paperwork of your LLC. When your LLC is formed, there are a few things that you’ll need to do regularly to keep it in good standing. An LLC lawyer can help you with these tasks, and can even handle them for you if you’d prefer.
The Business Help You Need
When it comes to your business, don’t take chances. GPS Law Group in North Carolina has the experience and expertise to ensure your business is set up correctly from the start. An LLC lawyer from our firm will make sure your business complies with all state and federal regulations, protecting your interests, and ensuring your business can operate smoothly.
Don’t wait until it’s too late. Contact GPS Law Group at (704) 549-1950 or use our online contact form to send a message and set up a consultation with one of our LLC lawyers. We’ll help you get your business off on the right foot, ensuring a bright future for years to come.
GPS Law Group serves Charlotte, North Carolina, and the surrounding communities.