question.jpgIn Business Law

What formalities does my LLC have to follow?

While LLCs have some formalities they must follow, the rules and requirements are not generally as strict or burdensome as the formalities that corporations must follow. For example, the laws do not generally require LLCs to have any annual meetings (although some LLC operating agreements require meetings - but that’s a choice you make at the time you are organizing your company). However, it is a good idea for LLCs to have periodic meetings of its members and managers to discuss significant business matters. At these meetings, it is also a good idea to have a secretary keep written records of what took place, including any votes (i.e., there should be minutes of the meeting). Most states do require some type of filing by the LLC, so you should check the law of the state your LLC is organized in, as well as any foreign states in which you have qualified your company.

Obviously, you should also keep up on your business taxes and any licensing requirements. Similarly, the individual members should avoid any conflicts of interest which could raise liability issues for the company and the other individual members. The LLC should also keep and maintain good business records, including a membership ledger.