Part One

How long does a Limited Liability Company last?

A number of states allow a Limited Liability Company to have a perpetual existence. Earlier Limited Liability Companies were required to provide a date on which the company's existence would terminate. In most cases, unless otherwise provided in the articles of organization or a written operating agreement, a Limited Liability Company is suspended upon the death, withdrawal, resignation, or bankruptcy of a member, with some exceptions.

Do I need an Operating Agreement?

Yes. To complete the creation of a Limited Liability Company includes drafting an Operating Agreement. The Operating Agreement must be created either prior to or directly after the filing of the Articles of Organization. An Operating Agreement may be either be oral or in writing.

What paper work is required to form a Limited Liability Company?

The Articles of Organization must be legally drafted and filed with the state office with the initial fees being paid at the same time.

What are the advantages of a Limited Liability Company?

A Limited Liability Company is a combination of the best aspects of a partnership and a corporation. Limited Liability Companies provide liability protection for member/owners, establishing a separate entity from the individual member/owners. However, a Limited Liability Company does not require the formalities of its managers and members that are required for a corporation. In addition, many states allow forming of single-member Limited Liability Companies.

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