Documents Necessary to Organize a Limited Liability in Ohio State - Term Paper Example

Documents Necessary to Organize a Limited Liability in Ohio State According to the Ohio Revised Code Section 1705.04, limited liability companies (LLC’s) are allowed to operate in Ohio. The appropriate documents are to be filled with the Secretary of State office before the LLC is allowed to operate. These forms include Articles of organization, IRS Employer Identification, Tax and Regulatory Requirements forms and Certification of Authority. These are found at the Secretary of State website and others can be collected from the offices. The filing fee for each of the form is provided alongside the necessary instructions. Necessary documents required to be filled up in order to set up a business in Ohio are: Articles of Organization Filling articles of organization is a legal process that is important and has its benefits and risks. Preparation of these articles requires the guidance of an attorney who is to ensure that the LLC has full legal protection. The attorney should also make sure that, their clients understand their responsibilities, advantages and the implications of filling the articles. Find Articles of Organization used in Ohio State attached in the email. IRS Employer Identification Employer identification number (EIN) resembles the Social Security Number and is nine digits long. It is assigned by Internal Revenue Service (IRS) to be used by the LLC’s to track their tax returns. One is required to request for the EIN from IRS website, download and print form SS-4. The form is supposed to have the signature of a representative of the LLC. Mail the completed SS-4 form the Internal Revenue Services headquarters in Ohio. One has to wait up to four weeks to get the assigned FEIN from IRS. The LLC can apply for federal tax ID for a fee through third parties or for free if applied directly (Ohio Secretary of State, 2014). Tax and Regulatory Requirements LLC’s are required to apply for working permits from Ohio Secretary of State. These include local permits necessary to do business in Ohio special and professional licenses depending on the business. One has also to contact the Ohio Bureau of Workers Compensation as required by the state law. This only applies if the LLC has hired employees who are salaried and registration is through their website. "The Ohio Department of Job and Family Services" (Ohio Secretary of State, 2014) have also to be contacted so as to establish an unemployment compensation tax account. This account is opened with the Ohio Department of Job and Family services through their website (Ohio Secretary of State, 2014). Certification of Authority This certificate is a necessity for foreign LLC that want to establish in Ohio State. Thee certificate is a proof of the LLC’s existence as affirmed by the federal government. It is also a documented compliance with the federal regulation on how businesses are set up and ran in the country (Ohio Secretary of State, 2014). Incorporation Process of a Limited Liability Company in Ohio Firstly, in setting up a Limited Liability Company (LLC) in the state of Ohio is choosing a business name. The name should be distinguishable from names of the domestic corporation, LLC, licensed foreign corporation and limited partnership that have previously been registered n the state. It must include one of the following: “LLC,” “limited,” “L.L.C.” or “ltd." To avoid conflicts, the availability of the proposed name should be searched in the state’s database at www.ohiosecretaryofstate.gov, email the Secretary of State”s office at busserv@ohiosecretaryofstyae.gov or call (877) SOS-FILE (767-3453). One may reserve a name for 180 days at a fee of $50 by filling a name reservation form with the Ohio Secretary of State at http://www.sos.state.oh.us/sos/upload/business/filingformsfeeschedule.aspx?page=251#domLim. The LLC must also state the period that they expect to operate in Ohio. After choosing the business name, articles of organization must be filled with the Ohio Secretary of State. Articles of organization can be accessed at http://www.sos.state.oh.us/sos/upload/business/filingformsfeeschedule.aspx?page=251#domLim. The mandatory articles are LLC's address and name, the dissolution date if applicable, and the signature and address of the LLC’s registered agent. The filling fee is $125 and should be sent through the post mail. Any LLC seeking registration in Ohio must appoint a registered agent for service of processes in the state. The agent serves as a the LLC representative and agrees to legal papers. The agent must be authorized to work in Ohio and may be a resident or corporation from other country authorized to transact and operate a business in Ohio. They also must have a physical address in the state and must certify that they are a resident of Ohio by checking the appropriate box in the articles of organization (Ohio Secretary of State, 2014). Though an agreement of the operation is not mandatory in Ohio, it is better that the LLC creates one. The operating agreement enables the partners to decide on how to divide and distribute the profits, who is to manage the LLC, how are members admitted and kicked out of the LLC, what are the procedures and policies to be adhered to if one of the partners want to sell their sake and what the tax consequences are in the way the LLC is set up. Retrieve one from https://www.nolo.com/products/form-your-own-limited-liability-company-liab.html. The LLC must also comply with tax and regulatory requirements set up by the State of Ohio. These additional taxes include: Business Licenses. The fee charged and applicable depends on the business's type and location. The LLC may also be required to acquire other local and state business licenses. Professional licenses list and business permits can be obtained from the Ohio Business Gateway at www.business.ohio.gov. They should contact or inquire from the Ohio Department of Taxation at www.tax.ohio.gov for further assistance in determining tax obligations (Ohio Secretary of State, 2014). Regulatory requirements to fulfill include: obtaining the IRS employer identification number (EIN) if the LLC have more than one member. The online application is available at www.irs.gov and search “EIN”. The LLC is also required to open up a bank account where by the EIN is mandatory. If the LLC has employees, they must be reported to the Ohio New Hire Reporting centre. This can be done online at www.OH-newhire.com. Further information about the Ohio New Hire Reporting centre can be obtained by calling the centre through (888) 872-1490. To cater for the employees’ compensation, the LLC is required to contact the Ohio Bureau of Workers Compensation. This can be done or seen by visiting the organization's website at www.bcw.gov, under the “employer” section. Minutes of meeting held between the partners are also a vital foe a LLC with few members. Decisions arrived at are recorded on the designed minutes form that makes it possible to record and document decisions made (Ohio Secretary of State, 2014). Foreign LLC’s that want to operate from Ohio must first carry out registration with the Ohio Secretary of State. They must also appoint an agent who is registered for the service of the process. The agent must either be Ohio's residentOhio, an Ohio corporation or corporation from another country permitted to do business in Ohio. Registration of a foreign LLC can be done online at www.sos.state.oh.us/sos/upload/business/filingformsfeeschedule.aspx?page=251#domLim. The application fee is $125 and must be by mail and is accompanied by a legal existence certificate or certificate of good standing issued by the foreign LLC's home state. The business name of the LLC must be available. If not, the LLC must adopt another name so as to trade in Ohio. The application fee is $50 (Ohio Secretary of State, 2014). Reference Ohio Secretary of State. (2014). Business Services. Retrieved April 10, 2014, from http://www.sos.state.oh.us/SOS/Businesses.aspx Read More