Basic question on forming LLC and obtaining a business account.

**horsenaround** · 03-06-2009 12:35 PM

Yes, I agree with BusinessAdviser. In the case of the Articles of Organization in CA you have to wait about 4 weeks (probably longer now , because our state is going bankrupted and furlowing workers-but that's another story).

The State folks here must check to make sure your business name is not in conflict with others and then they send you an approval. The wheels of government red tape don't move real fast.............

Frank

www.RaceHorseDreams.com - Welcome

**robousy** · 03-06-2009 12:35 PM

aaah....I think I may be seeing where I misunderstood BusinessAsvisor.

The Operating Agreement IS the article of organization...

Is that correct??

**horsenaround** · 03-06-2009 12:38 PM

No-they are seperate

**ScottPalmer** · 03-06-2009 12:48 PM

You'll also be charged annual fee's in your state to operate and maintain an LLC. You will need to file annual reports to the state. On top of the annual fee, some states include taxes, so be aware of this also.

**BusinessAdviser** · 03-06-2009 01:29 PM

The Articles of Organization is the very simple document that says an LLC by the name of "XXXXXXX Consulting LLC" exists. The operating agreement spells out who the member is or members are and how the company should operate. It can be simple or complex, but many banks require the Operating Agreement to open an account. The Articles will exist based on the formation of the LLC.

**robousy** · 03-06-2009 03:44 PM

Ok guys, thanks for helping me with that distinction.

I got my Federal Tax ID number (EID) number today and I'm going to get to work on the OA and the articles this weekend.

Hopefully I'll get my account next week.

**horsenaround** · 03-06-2009 06:32 PM

Knock yourself out....and go Consult your a$$ off!

Frank

www.RaceHorseDreams.com - Welcome

**robousy** · 03-06-2009 08:47 PM

Ok - so I've filed, and I've paid the (expensive) state fee of $300.

I've received back:
Certificate of filing signed by the sec. of state.
Certificate of Formation LLC
Employer Identification Number

Now - I feel like I'm going around in circles here with this whole articles of organization deal. Do I have the articles of organization now??? Are the above my articles of organization.

See, I've just been to Articles of Organization | Citizen Media Law Project and they say:

"You must file formal articles of organization with your state (usually with the Secretary of State) and pay a filing fee in order to form an LLC. The filing fee... Texas ($300)). ... "

So - I already paid my $300. Do I now have to pay an extra $300 to file my articles of organization??

**robousy** · 03-06-2009 08:52 PM

Ok - cool, I'm done.

I used Online Limited Liability Company Formation & Business Incorporation, IRS Form Preparation & Registered Agent Services and thats all included in the cost. They have forwarded the articles to the state for filing and are going to email me with updates.

I'm happy.

**horsenaround** · 03-06-2009 08:57 PM

Looks like you have it covered.

You may or may not need the Operating Agreement for the bank. But if so-it can be written easily since you are a one man show. There are simple examples online.

**BusinessAdviser** · 04-02-2009 11:31 PM

Congrats. Good luck, buddy. Keep us posted.

**mei fashion** · 04-03-2009 11:09 PM

it sounds about right. I went through legalzoom and it was a little over 500.00. As far as the business license you just need the documentation that they send you once it's all complete. I have opened a bank account for a LLC and for a corporation. Its not really that bad! Great job and good luck on your move forward! I always hold people who follow their dreams highly! I am no expert but I have been dabbling in and out of business since I was 16!