Form A New Limited Liability Company



A limited liability company is a legal entity that may be established by one or more individuals. Limited liability
company existence begins:

ï When articles of organization are filed with the Secretary of State; or
ï Within ninety days after filing articles of organization as designated in the articles.

The Secretary of State grants a charter upon filing of articles of organization legally recognizing the limited
liability company as a separate legal entity having its own rights, privileges, and liabilities distinct from those of
its members.

A limited liability company combines the characteristics of a partnership and a corporation. Like a corporation,
a limited liability company provides its members with limited liability regardless of the membersí participation in
management. Like a partnership, a limited liability company may be taxed under the flexible partnership rules,
rather than the inflexible S corporation rules.

A limited liability company may be organized to transact any business except farming, banking, and insurance
(insurer backing claims). An insurance agency selling insurance products may be formed as a limited liability
company. 

A limited liability company using a trade name in the transaction of business must file a Trade Name
Registration with the Secretary of State. A trade name is a name other than the limited liability company name.