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Home Q&A Forum What are the key steps and legal requirements for forming a multi-member LLC?
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Limited Liability Company

Multi-Member LLC

California

Asked on Aug 6, 2024

What are the key steps and legal requirements for forming a multi-member LLC?

I am currently in the process of starting a new business with two partners, and we have decided to structure it as a multi-member limited liability company (LLC). We have been researching the formation process but are still unclear about the specific steps and legal requirements involved. We want to ensure that we are following all necessary procedures and fulfilling our obligations as we establish this LLC, so we are seeking guidance on the key steps and legal considerations involved in the formation of a multi-member LLC.

1 Attorney answer

Answer

Limited Liability Company

California

Answered 28 days ago

Jonathan W.

ContractsCounsel verified

Business Lawyer
Licensed in California, Washington
Free Consultation

On a high level, the steps are: (1) Choose a name, draft and file the organizational docs with the sec'ty of state(s) in which you want to domicile and/or qualify to do business (2) File with the IRS for a TIN and make the election of being taxed as either a partnership, corporation or disregarded entity (3) Create and sign an operating agreement - a written operating agreement outlining the LLC's ownership, management, and operating procedures. (4) File your beneficial ownership report with FinCEN. (5) depending on what industry you are in secure any required licenses and permits for the LLC's business activities. (6) set up the entity with the appropriate operational legal documents for doing the business they plan on doing i.e. NDAs, Consulting Agreements, Equity Compensation Plans, sales agreements etc.

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