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Seperate Business Entities: Real World Uses for the Rest of Us 
 
by Brian Thompson September 08, 2005

Forming an LLC

An LLC is formed with what is known as articles of organization. These articles are essentially the same with most businesses. Some may have a few extra specifications depending on the number of people forming the LLC.

The articles of organization simply spell out the name of the business, who owns the businesses, and the address where the owners can be contacted. They also state that the business is separate from the owners, and that the owners cannot be held liable for the actions of the company—unless the actions are known to be fraudulent.

Typically for the reasons that you would be forming an LLC, the articles of organization will be two to three pages at the most. However, it is these two or three pages that will create the separate entity that you can use in your everyday life.

Once the articles of organization are put on paper, they must be registered with your local probate court. This usually involves taking them to the probate court and paying a county and state fee to register the LLC and record the document.

Depending on the area in which you live, there may be taxes imposed on the LLC. There may also be rules regarding whether you need to obtain a business license for your new entity. You will need to consult your local business laws and regulations to determine if this applies to your situation.

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