The Purpose Of A North Dakota LLC Operating Agreement
If you are currently a resident of North Dakota, and you would like to create an LLC, doing so will only take a few minutes to do. It is possible by simply contacting a business that can complete the process for you. However, if you want to do this on your own, there are many steps that you have to take. Part of that is creating what is called the Operating Agreement. There are other forms, including the Articles of Organization that you will have to submit in order to have this approved. Let’s discuss the process that you must go through in order to prepare all of the documents necessary to create your very first LLC in North Dakota.
What Does An LLC Do For You?
A limited liability company provides you with protection. That is its main purpose. If you have personal assets, and if you are ever sued by someone, they will not be able to access them even in court. One of the documents that you can create to prove that your LLC is separate from you as a person, and your assets, is to set up your Operating Agreement.
What Is An Operating Agreement
The operating agreement is not mandatory. In North Dakota, it is completely optional. However, in a court of law, if you ever have to show that your LLC is autonomous from your actual business, you will then want to have this available. The information on the document will include the duties, rights, powers, obligations, and also liabilities of the members and yourself. It is an internal document, and it will act as a primary document for establishing the autonomy of your LLC in the eyes of the court.
What Are The Articles Of Organization Used For?
The Articles of Organization is the primary document that you will submit to the North Dakota Secretary of State’s office. In fact, this is specifically done at the FirstStop website, however, you can also fax it in or send it by mail. It will cost $135 to submit this to them, so it’s important to have everything done properly. Initially, it is important to reserve your LLC name. You must do this on the North Dakota government website, simply searching for existing businesses that may have registered your name. If it is not taken, you can reserve it, and then you can use it for your limited liability company. You must have a place of business that you call your own.
This will be regarded as the principal office. The address of that office must be stated. Additionally, you have to find a registered agent. This is the individual that will receive all of your legal mail. Once you have one working for you, you will be in compliance with all of the state laws in North Dakota that require your LLC to have one. This will also be entered in on the Articles of Organization. You need to state when the LLC will begin when it will end if it does, and the purpose of the limited liability company when it is approved. The organizers must add their addresses and names, and each of them must sign the document so that it can be submitted directly to the South Dakota Secretary of State’s office.
How Long Will It Take To Approve Your LLC?
The approval process can take weeks, sometimes up to six weeks, but if you pay for expedited services, it will take about three days. This is the option that many people take simply because they don’t want to wait for the long period of time it often takes to approve it. Once it’s done, it will be active, and you can reap all of the benefits of having your limited liability company set up. In conjunction with your Operating Agreement, you will have everything that you will need to operate your business under the protection of your LLC.
Final Considerations To Make
Some final considerations to make will include will looking at how many taxes you will have to pay, and how you will pay them, which is very similar to how you are taxed as the owner of a sole proprietorship. Everything will pass through the LLC, and come to you, as well as the members that are working with you on your limited liability company.
Setting up your LLC in North Dakota will take some time. Most of the time will be spent researching whether your name is available for your business and finding a registered agent that will help you. Once that has been done, and you have a place of business with the physical address, you can then submit your information to set up your LLC. If you prefer, there will be companies that specialize in the creation of limited liability companies that can help you. Whether you need advice, or if you would prefer that they complete the process for you, these services are always available for people that want to create a limited liability company in North Dakota including the creation of your Operating Agreement.