Please call us at

What to expect when forming an LLC

If you are planning to go into business, organizing that business as a limited liability corporation or similar entity is a must.

Many people think that since their business is at a small scale, they do not need it to be contained in an LLC. While some Grand Rapid companies may not even have employees, creating a business entity is very important to the business owner for a couple of reasons.

One of the main reasons a business owner should form a limited liability corporation is to shield their personal finances from being lumped in with their business finances. When a business owner operates as a sole proprietorship, they could see their personal assets dragged into a lawsuit and bankruptcy that is tied in with the company. A limited liability corporation builds a wall separating the two finances, so that while a business might fall to financial ruin, the owner would not.

Another important reason to pursue an LLC is to make the business compliant with the state. Really, what is stopping you from turning your business into a limited liability corporation? These days, it is fast, cheap and easy. While business owners can file the proper paperwork on their own, it certainly does not hurt to seek the aid of an attorney that specializes in business formation and planning.

Each state requires different information from business owners, but almost universally, owners will have to be prepared to file the following paperwork:

  • Articles of organization: This is simply documentation that contains the basic information of the LLC. This information includes things like business name, address, members and partners, contact information and so forth. States often provide a form for this, but filers are encouraged to turn in a document drafted by an attorney that helped create the business.
  • LLC operating agreement: This normally is not required but many attorneys recommend it. This spells out duties of each partner, how decisions will be made and things of that nature.

Source:, "Two document you need to form an LLC," Tim Parker, March 22, 2012

No Comments

Leave a comment
Comment Information
Email Us For A Response

Need Legal Advice?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Farmington Hills Office
200 Kaufman Financial Center
30833 Northwestern Hwy.
Farmington Hills, MI 48334

Phone: 248-626-5000

Maps & Directions